INTRODUCTION

RE: "The Last Circle"

The following condensed version of The Last Circle was provided in October 1996 to a secret
Investigative Committee comprised of Congress people, lawyers and former PO!s at their re"#est$
I originally contacted Congresswoman %a&ine aters in ashington '$C$ and offered information
relative to CI( dr#g traffic)ing, b#t was told the information was too comple& and wo#ld I mind
p#tting the information into a newspaper story, get it p#blished and send it to her office*
I agreed and contacted a local newspaper reporter who, after reading portions of the material,
decided it needed to be reviewed by individ#als who had special )nowledge of CI( dr#g
traffic)ing, arms shipments, and biological warfare weapons$
(fter a brief meeting with these individ#als, former +pecial ,orces soldiers from the -ietnam era,
they as)ed for copies of the man#script, g#aranteed an immediate congressional in"#iry, and
advised me .OT to place the information on the Internet as they feared the information co#ld be, in
their words, /ta)en as 0#st another anti1government conspiracy$/
I condensed the man#script into the attached treatise, covering information relative to T23I4 foc#s,
and sent it to them along with )ey doc#ments$ +hortly afterward, they re1contacted me and set #p
elaborate sec#rity meas#res to ins#re my safety$ (s of this writing, I!ve had no need to instit#te
those meas#res$
I have in my possession five bo&es of doc#ments, obtained from a convicted methamphetamine
chemist whose closest friends were a 561year CI( operative and a former ,7I +enior1(gent1in1
Charge of the Los (ngeles and ashington '$C$ b#rea#s$ The labyrinthine involvements of these
people and their corporate partners is revealed in this man#script, along with information obtained
by ashington '$C$ 0o#rnalist 'anny Casolaro prior to his death in 1991$
( great deal of investigation still needs to be accomplished$ I have neither the financial means nor
the ability to obtain /evidence/ for /prosec#tion$/ I am simply an investigative writer, placing this
information into the p#blic for#m in hopes that someone, somewhere, will grasp the significance of
the data and initiate a f#ll1scale investigation with s#bse"#ent s#bpoena power$
ith s#bpoena power, government agents can testify 8some )ept anonymo#s in this man#script9
who wo#ld otherwise lose their 0obs and retirement if they came forward$ itnesses can be
protected and:or provided imm#nity, and financial transactions of government and #nderworld
fig#res can be scr#tini;ed$
To date, I have not had more than one ho#r conversation with anyone associated with any
Congressional investigation, and therefore am e&tremely limited in my ability to present the
information I have$ %#ch of what I learned d#ring my five1year investigation cannot at this point be
inserted into a man#script$ I m#st be ass#red the information and witnesses will be handled
appropriately$
I personally do not believe the 'epartment of <#stice will #ltimately /prosec#te/ this or any other
dr#g traffic)ing case if it involves government officials$ 7#t I have made the effort to p#t forth
eno#gh information to generate interest and show good faith$ I hope it will be of some val#e to the
(merican p#blic$
Please )eep in mind as yo# read the attached pages that the comple& corporate str#ct#res and
technological pro0ects described herein /may/ have been nothing more than an elaborate smo)e and
mirrors cover for narcotics traffic)ing$
This aspect of my investigation was corroborated by several government investigators, one of
whom was a 2o#se <#diciary investigator, who spent three years investigating the Inslaw stolen
software case and said in response to my findings=
/There!s some great information here$ >o# did a very good investigative 0ob, I have to commend
yo# on that$ I reali;e it!s only a fraction of everything yo# have$ What you have done, you have
put the pieces o the !hole thin" to"ether# Little bits and pieces of things that I have )nown
abo#t, that I had theori;ed abo#t, yo# have fo#nd answers to those specific "#estions$/ 8+ee Chapter
1? for entire conversation9$ That investigator is now in the hite 2o#se Office of 'r#g Control
Policy$
To those interested, nearly everything noted in the attached man#script is s#pported by doc#ments
or tape recorded interviews$ +ome are e&tremely b#l)y and not "#oted e&tensively in the
man#script, s#ch as lengthy ,7I wire tap s#mmaries$
I wish to than) @arby Leon, formerly 'irector of 'evelopment at <oel +ilver Prod#ctions, arner
7ros$ in 7#rban), California for tirelessly prompting me to get a first draft of The Last Circle
written in 199A and helping me with co#ntless tas)s d#ring o#r 0oint investigation of the death of
'anny Casolaro$
T $ E L % & T C I R C L E
Copyright 1994 - All Rights Reserved
'y Carol (arshall
NOTE:
This is a ,I4+T '4(,T, bare1bones, #npolished man#script witho#t prose, characteri;ations etc$
C$%)TER *
,or the dep#ties of the %ariposa +heriff!s 'epartment, the awa)ening occ#rred on <#ne 5A, 19B6,
when dep#ty 4on -an %eter drowned in an alleged boating accident on La)e %cCl#re$ The search
party consisted mainly of three divers, dep#ties 'ave 7eavers, 4od C#sic and @ary 3step$ (ltho#gh
ad0acent co#nties offered additional divers, sheriff Pa#l Paige ref#sed o#tside help, even a
minis#bmarine offered by 7eavers! associate$
In the shallow, placid waters of La)e %cCl#re, -an %eter!s body was not recovered that wee), and
indeed wo#ld not be fo#nd #ntil ten years later, in +eptember, 1996 when his torso, wrapped in a
fish net and weighted down by vario#s ob0ects, incl#ding a fire e&ting#isher, washed ashore a few
h#ndred yards from where +ergeant 4oderic) +inclair!s ho#seboat had once been moored$
-an %eter!s widow, Leslie, had been at home ba)ing coo)ies when she was notified of her
h#sband!s disappearance$ +he was an Indian girl who had no affinity with sheriff Pa#l Paige$ The
horror began for her that day also$ 2er home was ransac)ed and her h#sband!s briefcase and diary
were sei;ed by the %ariposa +heriff!s department$ Only she and a few dep#ties )new what -an
%eter!s diary contained$ 2e!d told his wife he!d ta)en o#t a special life ins#rance policy two wee)s
before, b#t after the search that was missing also$
Leslie was ta)en to a psychiatric clinic for eval#ation shortly after the incident$The story s#rfaced
years later, one tiny b#bble at a time$ The selfinvolved little comm#nity of %ariposa did not co#gh
#p its secrets gladly$ On %arch 5?, 19BA, Leslie -an %eter filed a Citi;en!s Complaint with the
%ariposa Co#nty +heriff!s department alleging that the +heriff!s office had been negligent and
#nprofessional in their investigation of her h#sband!s disappearance$ 2is body had still not been
fo#nd, despite private searches by +ergeant 7eavers and other friends of the missing dep#ty$ +he
wanted the case reopened$
Pa#l Paige was no longer sheriff, b#t newly elected +heriff Cen %attheys responded by reopening
the investigation$ Investigator 4aymond <en)ins, a %erced College Police Chief, and retired ,7I
agent Tom alsh from %erced, were notified by +heriff %attheys in October, 19BA that the -an
%eter case had been reopened and he wanted their help in cleaning #p the +heriff!s 'epartment$
Their investigation led them straight to the doorstep of (C% Corporation +(usic Corporation o
%,erica-, parent co,pany to Curry Co,pany, the lar"est concessionaire in .ose,ite
National )ar/# % ,a0or dru" net!or/ had suraced in the par/, co,pellin" one par/ ran"er,
)aul 'er/o!it1, to "o 2eore the $ouse Interior &u2co,,ittee on National )ar/s and
Recreation to testiy a2out dru" distri2ution 2y Curry Co,pany oicials#
3d 2ardy, the president of C#rry Company, was closely associated with %ariposa Co#nty officials,
in partic#lar, %ariposa 'istrict (ttorney 7r#ce 3c)erson, Co#nty (ssessor +teve '#nbar, and
Congressman Tony Coelho, whose district encompassed %ariposa and the Par)$ The ann#al
camping trips that the three men too) together was enco#raged by the local townsfol) beca#se most
of %ariposa!s ta& base emanated from C#rry Company$Coelho and 2ardy were reg#lar fi&t#res
aro#nd town, seen at most of the social events$ Coelho even coo)ed and served spaghetti dinners for
the whole town ann#ally at the %ariposa ,air @ro#nds, and p#rchased property in partnership with
one member of the %ariposa 7oard of +#pervisors$ In fact, %ariposa was one of the first places he
bid farewell to after resigning from Congress to avoid an investigation of his finances$
%eanwhile, investigator 4aymond <en)ins had followed the dru" trail ro, .ose,ite 2ac/ to the
(ariposa airport, !here sheri3s deputies !ere seen re"ularly loadin" and unloadin"
pac/a"es ro, planes in the dead o ni"ht#
One Indian girl complained bitterly abo#t deputies usin" the &ara )riest land allott,ent
+reservation- to "ro! ,ari0uana and operate ,etha,pheta,ine la2s# <en)ins, by now retired
from the position of Police Chief of %erced College, was called in to interview the Indian girl$ That
same day, as a favor, he provided me with copies of his notes$ I followed #p with a tape recorded
interview at her home in 7ear valley$ 2er father and #ncle operated a small a#to dismantling
b#siness on the reservation in %idpines, and after locating them and gaining their confidence, the
#ncle drove me o#t to Whis/ey 4lats, the site o the ,ari0uana and ,etha,pheta,ine la2
operations# That wee) I rented a horse and rode down into the roc)y, isolated valley of his)ey
,lats$ 7r#sh and shr#bbery tore at the saddle on the horse and at the end of the dirt path I
enco#ntered three snarling 4ottweiler dogs who p#t the horse into a fren;ied lather$
.evertheless, I managed to photograph the irrigation system, artesian spring and pond from which
the water was s#pplied as well as vario#s points of identification for f#t#re reconnaisance$ I later
ret#rned in a fo#rwheel drive pic)#p tr#c) and managed to view the trailer and lab shac)$
The tape recorded interview with the Indian girl, the photos and notes from my discovery were
provided to the +tanisla#s Co#nty 'r#g Tas) ,orce, b#t 0#risdictionally, they co#ldn!t enter
%ariposa Co#nty witho#t a#thority of the %ariposa +heriff!s department$ It was a catch 55
sit#ation$ Dltimately I provided the same information anonymo#sly to several related agencies$ It
was not #ntil 199? that the fields were eradicated, and 199A, before the labs were raided$ 2owever,
no arrests o any deputies !ere ever orthco,in"# In act, no arrests occurred at all, e5cept or
a e! nonEn"lish spea/in" (e5ican nationals !ho had handled the "coo/in"#" The head of the
Los (ngeles 'r#g 3nforcement (gency noted to a local newspaper that the ,eth la2 !as part o a
lar"e Caliornia dru" net!or/, 2ut they !ere una2le to identiy the /in"pins#
On <#ly 6, 19BE, %rs$ -an %eter filed a /4e"#est for Official In"#iry/ with the +tate of California
'epartment of 7oating and aterways stating that no satisfactory investigation was ever cond#cted
into the matter of her h#sband!s disappearance$
That same month, shortly after a meeting at La)e %cCl#re with %rs$ -an %eter, +heriff %attheys
mysterio#sly resigned from his position at the %ariposa +heriff!s 'epartment$ %attheys revealed to
reporter (nthony Pir#sh)i that he had been ordered by two co#nty s#pervisors and the co#nty!s
attorney /to stay away from the -an %eter investigation$/ 7#t that was not the reason he resigned$
The whole story wo#ld not s#rface #ntil seven years later when a reporter for the %ariposa @#ide
interviewed him$
2owever, while still in office, %attheys and his internal affairs investigators had learned the reason
for -an %eter!s disappearance$ ( few wee)s prior to his death in 19B6, -an %eter had driven to the
(ttorney @eneral!s office in +acramento and reported dru" dealin" and other types of corr#ption
within the %ariposa +heriff!s 'epartment$ This, according to his friends whom he had confided in,
dep#ties 'ave 7eavers, a fifteen year veteran of the sheriff!s department, and 4od C#sic, a
seventeen year veteran$ 7oth dep#ties were #ltimately forced o#t of the department and retired on
stress leave$
On that same day, reserve dep#ty L#c)y <ordan had driven to the ,resno office of the ,7I to report
similar information$ (ccording to <ordan, they had split #p and reported to separate agencies in the
event /something/ happened to one of them$The cr#& of the story was +tate (ttorney @eneral -an
'e Camp!s response to the re"#ested investigaion by 4on -an %eter$ hen 4on ret#rned home
from +acramento, he was confronted by +heriff Paige$ )ai"e had received a call ro, the
%ttorney 6eneral inor,in" hi, o the visit and its contents, and the sheriff was livid abo#t -an
%eter!s betrayal$7an (eter had 2een photo"raphin" and 0ournali1in" dru" activity 2y deputies
at La/e (cClure# 2e was part of a California +tate (batement Program which involved harvesting
and eradicating mari0#ana fields in >osemite .ational Par) and ad0acent co#nties$ Instead, the
harvested mari0#ana was being stored in abandoned cars and towed o#t of town by a local wrec)er
#nder contract with the sheriff!s department$ It was also being distrib#ted at a hidden cove at La)e
%cCl#re$
On <#ne 5A, 19B6, fr#strated and angry at the (ttorney @eneral for betraying him, -an %eter had
borrowed a boat and was on his way to arrest the dep#ties at La)e %cCl#re himself$ 2e never
ret#rned$ The investigation of -an %eter!s /accident/ was initially handled by +ergeant 4oderic)
+inclair, who co#ld not have )nown on that fatef#l day that in e&actly three years, three months, and
nineteen days, he wo#ld enter the Twilight Fone where his own private hell awaited him$
GGGGGG
The first s#bstantial hint that a tentacle of the Octop#s had slithered into %ariposa Co#nty occ#rred
on %arch E, 19B? when a %ariposa Co#nty +heriff!s vehicle sco#ting H#een 3li;abeth II!s
motorcade ro#te ro#nded a c#rve in the >osemite .ational Par) foothills, crossed a highway and
collided headon with a +ecret +ervice car, )illing three +ecret +ervice agents$ C2P 8California
2ighway Patrol9 (ssistant Chief 4ichard 2anna reported that the collision occ#rred at 16=E6 a$m$
between Co#lterville and La @range on 2ighway 1?5 abo#t 5E min#tes ahead of H#een 3li;abeth!s
motorcade$C2P +ergeant 7ob +chilly reported that %ariposa Co#nty +heriff!s +ergeant 4oderic)
+inclair, A?, was driving with his partner, 'ep#ty 4od %cCean, E1, when /for some reason, Ihe
didn!tJ )now why,/ +inclair crossed the center line and hit the second of the three +ecret +ervice
cars, which went t#mbling down a 16foot emban)ment$
The three +ecret +ervice agents )illed in the collision were identified as @eorge P$ La7arge, A1,
'onald 4obinson, ?B, and 'onald ($ 7e0ce), 59$ +inclair, who had s#stained bro)en ribs and a
fract#red )nee, was first stabili;ed at ,remont 2ospital in %ariposa, then transported several days
later to %odesto %emorial 2ospital$
>ears later, several n#rses who had been present when +inclair was bro#ght into ,remont 2ospital
confided that +inclair had been dr#gged on the day of /the H#een!s accident/ as it became )nown in
%ariposa$ ,or months +inclair had been receiving h#ge daily shots of 'emerol, /eno#gh to )ill
most men,/ according to one billing cler)$ +ome former dep#ties who had feared p#nitive meas#res
if they spo)e #p, later corroborated the story of the n#rses$
%eanwhile, (ssistant D$+$ (ttorney <ames hite in ,resno ordered 'r$ (rth#r 'ahlem!s files sei;ed
to prove +inclair!s dr#g addiction$ +inclair!s %ariposa doctor and close friend had been prescribing
heavy sedatives to him for years$ hen hite attempted to prosec#te +inclair for criminal
negligence, he was called into chambers d#ring the federal probe and told by D$+$ 'istrict Co#rt
<#dge 4obert 3$ Coyle to /drop the criminal investigation/ beca#se +inclair!s dr#g problem was not
relevant to the prosec#tion and the dr#g records co#ld not be #sed in co#rt$ <#dge Coyle!s reasoning
was that no blood tests had been ta)en on +inclair at the ,remont 2ospital on the day of the
accident, therefore no case co#ld be made against him$
In fact, the blood tests 2(' been ta)en, b#t later disappeared$( significant piece of information
relative to <#dge Coyle!s bac)gro#nd was passed to me d#ring my investigation of the H#een!s
accident by retired ,7I agent Thomas alsh$ (llegedly, the <#dge was once the attorney of record
for C#rry Company 8owned by %C( Corporation9 in >osemite .ational Par)$ I later learned, in
1995, that 4obert 7ooth .ichols had strong ties to %C( Corporation thro#gh 3#gene @ia"#into,
president of %C( Corporation 2ome 3ntertainment 'ivision$ @ia"#into had been on the 7oard of
'irectors of .ichols! corporation, %IL, Inc$ 8%eridian International Logistics, Inc$9 and also held
16,666 shares of stoc) in the holding corporation$ %IL, Inc$ was later investigated by the Los
(ngeles ,7I for allegedly passing classified secrets to overseas affiliates in <apan and (#stralia$ It
is interesting to note, tho#gh #nrelated, that shortly afterward, the <apanese p#rchased %C(
Corporation, one of the largest corporate p#rchases to ta)e place in (merican history$
4elative to the H#eens accident, in the civil trial that followed the tragic accident, <#dge Coyle
r#led that both +inclair and the deceased +ecret +ervice agents were at fa#lt$ %ariposa Co#nty was
ordered to pay K6 percent of the claim filed by the widows, and the +ecret +ervice to pay ?6
percent$ The co#nty!s ins#rance company paid the claim, and ironically, +inclair was s#bse"#ently
promoted to Commander of the %ariposa +heriff!s 'epartment where he is still employed as of this
writing$
In an interview on %arch K, 19BB, at >oshino!s 4esta#rant in ,resno, former D$+$ (ttorney <ames
hite recalled that the original C2P report on the H#eens accident was sent to the +tate (ttorney
@eneral!s office 8-an 'e Camp9 in +acramento$ The report was first received by (rnold Overoye,
who agreed with hite that +inclair sho#ld be prosec#ted$ 7#t when the report crossed -an 'e
Camp!s des), he told Overoye and his assistant to discard it trash it$
-an 'e Camp then appointed 7r#ce 3c)erson, the %ariposa Co#nty 'istrict (ttorney, to ta)e
charge of the investigation and s#bmit a new report$ Coincidentally, 7r#ce 3c)erson!s disclos#re
statements on file at the %ariposa Co#nty Co#rtho#se indicated that he owned stoc) in %C(
3ntertainment Corporation$ hite added that (LL of the crac) %$($I$T$+$ team C2P officers
involved in the original investigation either resigned or were transferred 8or fired9 afterward$ The
C2P Commander and the 'ep#ty Commander who s#pervised the %$($I$T$+$ investigation also
resigned as did (ssistant D$+$ (ttorney hite himself after the cover#p too) place$
2owever, hite noted that before he resigned, he "#ietly filed with +tephan LaPalm of the D$+$
(ttorney!s office in +acramento the transcripts of the trial and an affidavit which listed the
/hall#cinatory/ dr#gs +inclair had #sed prior to the accident$ I privately contin#ed with the H#een!s
accident investigation, interviewing dep#ties 'ave 7eavers and 4od C#sic who had been privy to
+inclair!s dr#gged condition on the day of the accident$
7eavers, who was the first dep#ty to arrive on the scene, maintained fo#r years later, in 19BK, that
he was cogni;ant of +inclair!s condition, b#t when he was "#estioned by <ames hite he was .OT
(+C3' abo#t the dr#gs$ 8<ames hite had by then been ordered to drop the criminal investigation
and stay away from the dr#g aspect of the case9$
In <an#ary 19BB, dep#ty 4od C#sic strode into the offices of the %ariposa @#ide, a competitor
newspaper to the %ariposa @a;ette, and stated that he was /told by 4od +inclair to lie to a @rand
<#ry/ abo#t +inclair!s dr#g addiction and the res#lting H#een!s accident$ C#sic added that he
officially disclosed this to the ,resno ,7I on (pril 56, 19BA and again on October 9, 19BK$ In 19BK,
C#sic also noted that he witnessed a boobytrapped incendiary device e&plode at 4od +inclair!s
home d#ring a visit to his residence$ (dditionally, earlier on, +inclair allegedly barricaded himself
inside his home and boobytrapped the property, as witnessed by n#mero#s dep#ties who tried to
pers#ade him to come o#t$
hile reviewing old newspaper clippings from the %ariposa @a;ette, I discovered an odd sidebar
to the story$ In 'ecember, 19BA, d#ring the H#een!s accident civil trial in ,resno, D$+$ (ttorney
<ames hite had introd#ced testimony that +inclair!s vehicle contained /a myriad of a#tomatic
weapons incl#ding a boobytrapped bomb/ when the collision occ#rred on %arch E, 19B?$ It was not
#ntil 1991 that I discovered the depth of the cover#p$
( C7+ television e&ec#tive and a +ecret +ervice agent who had ridden in the third car of the
H#een!s motorcade in 19B?, arrived in %ariposa to enlist my help in p#tting the pieces of the p#;;le
together on the H#een!s accident$ The +ecret +ervice agent!s best friend had been the driver of the
car in which all three agents were )illed$ I signed a contract with the television e&ec#tive for the
sale of the story then drove them to the site of the accident, then to the site of where the damaged
vehicle was stored near La)e %cCl#re$ The +ecret +ervice agent bro)e down at the sight of the
vehicle, remembering the gr#esome appearance of his dead friend in the front seat$ 2e t#rned, tears
welling in his eyes, and said, /2is heart b#rst right thro#gh his chest and was laying in his lap when
I fo#nd him$/
'ave 7eavers 0oined #s the ne&t day$ (s did former sheriff Cen %attheys$ 7eavers did not )now
that the same +ecret +ervice agent whom he was sitting with in the car was the man who had tried
to p#ll +inclair o#t of the sheriff!s vehicle on the day of the accident$ There had been a sc#ffle,
7eavers insisting that +inclair go to the hospital with /his own people,/ and the +ecret +ervice
#ltimately conceding$The +ecret +ervice agent reflected sadly that they didn!t )now to as) the
hospital for blood tests on +inclair that day, didn!t )now of his dr#g addiction$ 7y the time the case
went to co#rt, the records at the hospital were gone$
Two wee)s after the agent left %ariposa, I received a pac)et containing copies of +inclair!s dr#g
records for three years prior to the accident$ They were the same records that D$+$ 'istrict Co#rt
<#dge 4obert Coyle had disallowed in the H#een!s accident trial$ 7#t it was not #ntil prod#cer 'on
Thrasher, a tenyear veteran of (7C .ews /56:56,/ came to town, that I learned of +inclair!s
bac)gro#nd, or the e&tent of his addiction$
7y chance, at a boo) signing engagement at 7$ 'alton 7oo)store, I had mentioned to the manager,
+ha#la 7rent, that my ne&t boo) contained information abo#t the H#eens accident$+#rprised, +ha#la
bl#rted o#t that she had wor)ed at ,remont 2ospital when +inclair was bro#ght in from the
accident$ +ha#la reco#nted the following= 4od +inclair was bro#ght into ,remont 2ospital and
placed in a room with an armed /,7I/ agent o#tside the door$ +inclair had been receiving h#ge
shots of 'emerol in the arm every day prior to the accident, by order of 'r$ (rth#r 'ahlem$ +ha#la
noted that +inclair was a big man and the amo#nt of 'emerol he had been receiving wo#ld have
)illed most men$ (fter the H#een!s accident, all dr#gs were withdrawn from +inclair, and
employees, incl#ding +ha#la, co#ld hear him raving alo#d for days from his hospital room$ The
employees at the hospital were instr#cted not to spea) abo#t or repeat what too) place at the
hospital while +inclair was there$
7eca#se +ha#la and her friend, 7arbara Loc)e, who also wor)ed at the hospital, were s#spicio#s
abo#t +inclair!s hospital records, they secretly too) photostats of the records /before they were
destroyed by the hospital$/ 7lood 2(' been drawn on +inclair on the day of the H#een!s accident,
and he 2(' been #nder the infl#ence, according to +ha#la$ +ha#la gave the names of si& n#rses
who were witness to +inclair!s condition at the time he was bro#ght into ,remont 2ospital$ hen
his body was finally dr#gfree, +inclair was transported, against his wishes, to %odesto 2ospital$
GGGGGG
In <an#ary, 1995, the final pieces to the p#;;le fell into place$ &inclair3s 2ac/"round had 2een the
/ey all alon"# Prod#cer 'on Thrasher had interviewed the +ecret +ervice agent and, altho#gh the
information he obtained wo#ld not be #sed in his prod#ction, he advised me to follow #p$ The
+ecret +ervice corraborated the following profile= &inclair3s ather had 2een a ,ilitary attache to
6eneral Dou"las (ac%rthur durin" World War II# 8I had privately m#sed how many of
%ac(rth#r!s men later became arms of the Octop#s9$ In 8apan, ater the !ar, Colonel &inclair
+sr#- supervised the trainin" o selected 8apanese in intelli"ence "atherin" operations#
(ccording to the +ecret +ervice, he !as an "international i"ure," hi"hly re"arded in the
intelli"ence co,,unity# 4od +inclair, <r$ attended school in <apan d#ring this time$ 2e later
reportedly wor)ed in the (rmy C$I$'$ in a non,ilitary or civilian capacity, alle"edly receivin"
trainin" at 4ort Li""ett in &an Luis O2ispo, a trainin" center or ,ilitary intelli"ence
operations#
Co#ld it have been possible for Colonel +inclair, +r$ to have called #pon old friends in high places
to resc#e his son, 4od, from the H#een!s accident investigation* 'id the Octop#s have eno#gh
power to alter an investigation of the death of three +ecret +ervice agents* %ccordin" to the &ecret
&ervice a"ent in Los %n"eles, it did# %nd he intended to tell the story ater he retired#
C$%)TER 9
7y this time three consec#tive grand 0#ry foreman!s had so#ght help from the (ttorney @eneral, to
no avail$ It came to pass that one of the dep#ties, 'ave 7eavers, was having tro#ble obtaining his
/stress leave/ pay and hired a <ac)son, California lawyer to represent him in the case$ The lawyer,
7en agner, not only interviewed 7eavers, b#t began interviewing other dep#ties who corroborated
7eavers! story$ %ost of them, thirteen in all, had at one time or another testified before the grand
0#ry and s#bse"#ently been forced o#t of the department$ Interestingly, none of the dep#ties )new
/why/ the others had been been placed on stress leave or resigned #ntil agner finally assembled
them together and the story was aired$
(t that point some of the former grand 0#ry members were called in to confirm the testimony of the
individ#al dep#ties$ %ost ref#sed to spea) #p, b#t a few corroborated the dep#ties! story$ Dltimately,
after n#mero#s meetings, the gro#p of dep#ties and grand 0#rors formed and later incorporated an
organi;ation they called '$I$@$ 8'ecency in @overnment9$
7y now, agner was carrying a g#n inside and o#t of %ariposa for the first time in his life and
writing letters to the (ttorney @eneral, the ,7I, and even President 4onald 4eagan$ One response
was forthcoming, from a special agent at the ,resno 'epartment of <#stice, 'ivision of Law
3nforcement$This agent listened to Cay 4itter, a former grand 0#ry foreman and several dep#ties
after reviewing agner!s evidence$
agner was contemplating a h#ge civil rights laws#it against the co#nty of %ariposa, b#t it was
imperative that he first #nderstand /why/ the attorney general ref#sed to help these people$hen
the special agent drove to +acramento and reviewed the files within the attorney general!s office
emanating from %ariposa, and tal)ed to some of the office staff there, he learned that everything
pertaining to %ariposa was a#tomatically /trashed/ when it crossed the (:@!s des)$
'isg#sted, the agent called 7en agner and told him /@o ahead with the laws#it$/ 2e had no idea
why all the grand 0#ry doc#ments had been trashed, b#t he was convinced no help wo#ld be
forthcoming from the attorney general!s office$
On .ovember 56, 19BK, agner filed with the D$+$ 'istrict Co#rt in ,resno the first of two
laws#its, later revealed in a +acramento newspaper to be the largest civil rights laws#its ever
recorded in California history$ .ewspaper reporters and television crews floc)ed to agner for
interviews$ In one instance, agner, former +ergeant 'ave 7eavers and others stood in front of the
,resno ,7I b#ilding while being interviewed by Channel ? +acramento .ews$
On camera, witho#t hesitation, 7eavers recalled o2servin" deputies carryin" pac/a"es o dru"s
from the @old Coin +aloon, a notorio#s dr#g hango#t, and placing the pac)ages in the tr#n) of their
patrol car$ ( s#bse"#ent raid indicated the dr#gs had been stored by the owner in a historic
#ndergro#nd t#nnel once #sed by the infamo#s bandit, <#a"#in %#rietta, to escape the sheriff!s
posse$
%eanwhile, on ,ebr#ary 16, 19BB, attorney agner filed at the D$+$ 'istrict Co#rt in +acramento a
rit of %andam#s against <ohn -an 'e Camp, the +tate (ttorney @eneralL @eorge -inson, regional
director of the ,resno ,7IL @eorge 'e#)eme0ian, then @overnor of California, and 'avid ,$ Levi,
Dnited +tates (ttorney for ref#sing to investigate corr#ption in %ariposa Co#nty$
The citi;ens of %ariposa were choosing sides, writing letters to the editor, arg#ing amongst
themselves, and being interviewed on the sidewal)s by news media$ '$I$@$ was the tal) of the town$
On ,ebr#ary 1K, 19BB, Capitol .ews +ervice in +acramento ran a story entitled, /Law M Order
,ailing on 2ill Co#nty,/ by <erry @oldberg$ The article noted that Capitol .ews +ervice had had
disc#ssions with several (ttorney @eneral staff members who /stonewalled "#estions abo#t any
investigation of charges or direct answers on the willingness of -an de Camp to meet with the
citi;en!s gro#p I'$I$@$J$/
@oldberg mentioned the /H#een!s accident/ in his article= /The ,resno case charges destr#ction of
records on individ#als ICommander 4od +inclairJ involved in the case$ This incl#des possible
information abo#t the fatal accident which occ#rred in the area Iof %ariposa Co#ntyJ when an
escort vehicle involved in the visit of H#een 3li;abeth in 19B? Icrashed$J/
@oldberg went on to note that /several people had received threats abo#t dangero#s things
happening to them if they contin#ed to stand #p to the sheriff and district attorney$/ ( +an <oa"#in
Co#nty official, who as)ed not to be named, told @oldberg that a )ey element to the problems in
%ariposa Co#nty /related to the fatal accident which occ#rred to H#een 3li;abeth!s escort vehicle$/
On ,ebr#ary 19, 19BB, 7en agner!s wife, a legal secretary, sent a letter to President 4onald
4eagan at the hite 2o#se$ The agners did not live in %ariposa Co#nty, indeed, lived far away in
<ac)son Co#nty, #nfettered by corr#ption, yet they saw fit to ta)e it #pon themselves to write for
help$ That emotionally gripping letter was headed, /4estoring 3"#al 4ights to the Citi;ens of
%ariposa Co#nty$/ It read as follows=
/'ear )resident Rea"an: I am writing to yo# not only as the wife of an attorney, b#t as a citi;en of
the Dnited +tates$ %y initial concern is that yo# personally receive this letter and enclos#res, as
many residents of %ariposa Co#nty have literally placed their lives, and the lives of their families in
0eopardy by coming forth to e&pose the local government corr#ption detailed herein$I #nderstand
that yo#r time is at a premi#m, however, yo#r immediate attention regarding these matters is of the
#tmost importance, and respectf#lly re"#ested$
/In (#g#st, 19BK, o#r office was approached by several e&dep#ties and individ#als from %ariposa
Co#nty re"#esting assistance in redressing #nlawf#l and corr#pt activities by officials and
departments within their local government, and fail#re on the part of the +tate (ttorney @eneral
<ohn -an 'e Camp, the Office of the (ttorney @eneral, and o#r ,ederal agencies, to investigate
these alleged activities$
/hat we fo#nd thro#gh o#r initial investigations and acc#m#lation of evidence into these
allegations was appalling$ It too) #s time to reali;e that in fact, the Constit#tion of the Dnited +tates
had been s#spended in this co#nty$
/The organi;ation, 'ecency in @overnment I'$I$@$J, was formed, and on .ovember 56, 19BK, the
first m#ltimillion dollar Civil 4ights s#it was filed in ,resno$ e felt media coverage wo#ld lay a
solid gro#nd of personal safety for other complaintants to come forth$ This coverage proved to be
s#ccessf#l, and on ,ebr#ary 11, 19BB, the second Civil 4ights s#it was filed, along with the filing of
a rit of %andam#s in +acramento$
/I have enclosed copies of these s#its, incl#ding several newspaper articles regarding the sit#ation$
+ince 19K9, many residents, incl#ding individ#als, sheriff!s dep#ties, gro#ps, organi;ations,
members of @rand <#ries and @rand <#ries have ta)en their complaints to the Office of the (ttorney
@eneral, +tate (ttorney @eneral <ohn -an 'e Camp and ,ederal a#thorities for investigation$
/These agencies have contin#o#sly and blatantly failed to redress the grievances of these citi;ens$
hat appears to be a consistent proced#re of one (rnold O$ Overoye, of the +tate (ttorney
@eneral!s Office, is to refer the complaints directly bac) to the local agencies to whom the
complaints were made$
/Over the years, this has perpetrated threats, intimidation and fear by these local officials to the
complaining individ#als$ There has also been "#estions regarding the disappearance of citi;ens
possessing incriminating evidence, and the incompletion or fail#re to investigate Nhomicides! and
Ns#icides!$
/,#rther, it has recently come to o#r attention, that %r$ Overoye!s Nproced#re,! and the inaction of
+tate (ttorney <ohn -an 'e Camp and ,ederal agencies is not limited to %ariposa Co#nty, b#t in
fact, e5pands to a nu,2er o oothill counties who are e&periencing the same types of local
corr#ption$
/The grievances of these citi;ens, as yo# will note in paragraph I- of the 4IT are= 819 -iolation of
Individ#al Civil 4ights 859 (b#se of discretion in the prosec#tion of criminal complaints 8?9
Intentional obstr#ction of the d#e co#rse of <#stice 8A9 %alicio#s prosec#tion 8E9 7ribery 869
Intimidation of @rand <#ry members and witnesses 8K9 The deprivation of property 8B9 Illegal and
#nlawf#l land transaction 899 The ailure to arrest and prosecute those involved in ille"al dru"
sales, includin" individuals e,ployed 2y the County o (ariposa 8169 -iolation of Property
4ights 8119 Conspiracy to impede and obstr#ct criminal investigations 8159 2omicide 81?9
(ttempted homicide 81A9 4ape 81E9 7attery 8169 Per0#ry$
/hy %r$ President, are we bo#nd to the laws of this co#ntry, and o#r officials are not* Life in
%ariposa is as if the citi;ens were being held in detention, and the local agencies, the criminals,
were r#nning the co#nty$
/.eedless to say, residents feel it is a way of life to literally arm themselves and their homes against
their governmentO I have been in these people!s homes, and have witnessed the arsenal of weapons
they feel they m#st possess to protect themselves and their families$
/%y h#sband m#st travel in, aro#nd and o#t of this co#nty I%ariposaJ with an armed escort$ 2e is
transported d#ring Nthe midnight ho#rs! to interview Plaintiffs and witnesses$
/I as) yo#, %r$ President, what co#ntry are we living in* e sho#ld certainly ma)e s#re that o#r
bac)yard is clean before we boast to the +oviets regarding the Civil 4ights of (mericans$
/On <an#ary 19, 19BB, my h#sband too) two witnesses, Cay 4itter, a former %ariposa @rand <#ry
,orewoman and 4obert (shmore, an e&dep#ty, to %r$ I@eorgeJ -inson, the 4egional 'irector of
the ,7I in ,resno$ The testimony, both oral and doc#mentary, too) appro&imately ? ho#rs to
present$ To this date, the ,7I has failed to redress the grievances of these complaintants, and %r$
-inson did not even have the co#rtesy to ret#rn my h#sband!s phone calls$ It came to o#r
#nderstanding, thro#gh a reliable so#rce, that %r$ -inson felt the complaints had Nno s#bstance$!
/%r$ President, my h#sband has been a trial attorney for 1A years$ 2e certainly wo#ldn!t waste his
time or e&pertise, or the time of these witnesses, if he felt there was Nno s#bstance! to the contents of
their testimony$2owever, this attit#de by (ttorney @eneral -an 'e Camp, his office, and ,ederal
agencies is typical and consistent$
/+hortly after this incident, a ,a0or dru" dealer contacted our oice !ith valua2le inor,ation
detailin" the sale o ille"al dru"s to county oicials, and wanted information regarding the
,ederal itness Program$ %r$ -inson, )nowing this by telephone messages, again failed to ret#rn
my h#sband!s in"#iries$
/There is evidence by another credible witness, who was informed by the ,7I, that sho#ld they get
involved now, it wo#ld be Nbad p#blicity,! and Nthey have let the problems in %ariposa get too far
o#t of hand$!
/>o# may wonder why my h#sband and I became dedicated to the citi;ens of this co#nty$ e
certainly don!t foresee large amo#nts of money at the end of this case$ O#r investment in time and
e&pendit#res e&ceeds PA6,666 to date$hat we do see are people, 0#st li)e yo# and I, who have
been s#ppressed by their own Nelected ! officials, with no help or assistance from (ttorney @eneral
-an 'e Camp, his office, or ,ederal agencies$ If someone doesn!t help them, they will contin#e to
live #nder these conditions, which I co#ld never imagine wo#ld e&ist in (merica$
/%y h#sband is not a righteo#s individ#al, nor is he perfect$ .one of #s are yo# )now$ 2e also
doesn!t believe that he can solve the problems of the world$ 2owever, being an attorney, he is an
officer of the Co#rt, and he feels a professional obligation to #phold the laws of the +tate, and to
maintain the freedom of the citi;ens of this co#ntry$
/This is, however, more than I can say abo#t a n#mber of Nrepresentatives! and officials, who have
failed to perform their appointed d#ties of their office, and are paid by the ta&payers$Thro#gh my
involvement in this case, I have fo#nd, to my rep#lsion, that my lifelong conception of o#r
government!s representation of the Npeople,! its vested a#thority and ability to #phold Civil 4ights,
and its d#ty to maintain the laws and the Constit#tion, has been only an shattering ill#sion$
/O#r system has failed, %r$ President$ (nd by its fail#re, has cr#shed and destroyed the lives of
many innocent, lawabiding people$ hy* There is an answer$ (nd we will #tili;e every legal
aven#e to find it$ e will not be disco#raged, or give #p in o#r effort to restore the Constit#tion of
the Dnited +tates in %ariposa Co#nty, and other foothill comm#nities$ e will contin#e #ntil the
answer is fo#nd$ 3ven if it means presenting the problem to yo#, %r$ President, on the steps of the
hite 2o#se$
/O#r best regards to %rs$ 4eagan$ 4espectf#lly yo#rs, -ivian L$ agner$/
GGGGGG
+hortly before 7en agner!s first sched#led appearance in D$+$ 'istrict Co#rt in ,resno on behalf
of '$I$@$ 8'ecency in @overnment9, agner received an obsc#re response from "Chuc/" at the
Rea"an White $ouse# agner e&citedly called Cay 4itter and 'ave 7eavers, myself and a few
others to note that a meeting with /Ch#c)/ was sched#led that wee)$ It was to be a somewhat secret
meeting as re"#ested by the hite 2o#se$
2owever, the day after meeting with /Ch#c),/ agner #npl#gged his phone and wal)ed o#t on his
law practice and his home in <ac)son, California, ta)ing nothing with him e&cept his clothes and his
wife, never to be seen again$ I was later told that <erry @oldberg of Capitol .ews +ervice did the
same, on the same day, and I was never able to locate either of them again$
C$%)TER :
The last remnants of the '$I$@$ gro#p were beginning to call themselves /The Loser!s Cl#b,/
resembling forlorn characters o#t of a +tephen Cing novel$ They had s"#ared off against a
labyrnthine evil so incomprehensible, they didn!t )now what they were fighting$ It was time to bring
in some o#tside help$
'#ring a strategy meeting in <ac)son, California, 7en agner had received an impressive K66 page
report commissioned by the T#lare City Co#ncil$ The report, compiled by Ted @#nderson, a former
Los (ngeles ,7I agent, was indepth and straightforward abo#t dep#ties receiving payoffs and
distrib#ting dr#gs in the small farmtown of T#lare$ agner had given me a copy for my files$
On an imp#lse, I pic)ed #p the phone and called @#nderson!s telephone n#mber listed at the top of
the attached res#me$ The res#me was impressive$ 2e!d wor)ed as +(C 8+enior +pecial (gent in
Charge9 at Los (ngeles ,7I head"#arters, ashington '$C$ head"#arters and in 'allas, Te&as$ It
wo#ld be two years before I wo#ld grasp the significance of the 'allas connection$ (fter retiring
from the ,7I, he!d wor)ed for ,$ Lee 7aily, 3s"$, then formed his own investigative agency in Los
(ngeles co#nty$
I left a message with the answering service and he ret#rned the call a few days later$ 2is voice was
open, attentive, devoid of the b#rea#cratic hollowness I had come to e&pect from ,7I agents$ e
tal)ed briefly, mostly abo#t the problem 'I@ was e&periencing in %ariposa$ I said I needed help,
anticipating his ne&t "#estion$ 7#t none came forth$ Instead, a clipped )nowingness entered his
tone, as if nothing more sho#ld be said on the phone$ 2e agreed to meet with me at his home a few
wee)s later and we h#ng #p$
Dn)nown to me at the time, I had ta)en a "#ant#m leap in the direction of the Octop#s when I
contacted Ted @#nderson$ The mystery of the %ariposa cover#ps wo#ld soon be div#lged thro#gh
an associate of his, a former member of /The Company/ in nearby ,resno, California$
GGGGGG
On .ovember ?6, 1991, Ted @#nderson opened the door at his %anhattan 7each home and #shered
#s into a small living room cl#ttered with toys$ 2e made no e&planation for the toys scattered
aro#nd the floor and the co#ch, b#t offered coffee and don#ts, then proceeded to eat most of the
don#ts himself$ I had e&pected someone dripping with intrig#e, instead he was classic in the sense
of an investigatorL r#mpled shirt and slac)s, nervo#s movements, distracted behavior$ e sat on the
co#ch b#nched together amongst the toys$ @#nderson p#lled a )itchen chair #p in front of #s, leaned
over and began st#ffing his mo#th with cheese and crac)ers, all the while tal)ing, his body in
perpet#al motion$ 2e was a big, handsome man with an aging face and tossled silver hair$ 2e
seemed entirely #naware of his appearance or the appearnce of his home, b#t his pale eyes were
intelligent and probing$ Int#itively, I )new he was more than he appeared to be$
( yo#ng woman, perhaps early thirties, entered the room br#shing long blond hair, still wet from
the shower$ 2er faded 0eans and s#ndrenched appearance reminded me of friends I!d )nown
growing #p in .ewport 7each$ @#nderson introd#ced her as his /partner,/ as she seated herself
silently on the floor ne&t to him$ The fl#sh on her face bro#ght a fleeting prescience to me that they
had been ma)ing love shortly before the meeting$
4ay <en)ins reco#nted the %ariposa story for several ho#rs, with the rest of #s digressing to insert a
fact here or there$ The investigation had led beyond %ariposa into %C( Corporation, and vario#s
+tate and ,ederal levels of government$ I noted that 'anny Casolaro!s research had started at the
eastern end, in ashington '$C$, yet he had been preparing to travel to California for the rest of the
story, 2eore his death three ,onths earlier#
@#nderson listened caref#lly, occasionally interr#pting to as) "#estions, then motioned #s to follow
him to the bac)yard$ There we stood in a circle in the middle of his yard while he s#rveyed the area$
+atisfied that he was not being watched, he agreed to come to %ariposa, with media, and perform a
citi;ens arrest on the corr#pt officials$ 2e p#lled a fra;;led piece of paper from his poc)et and gave
me a list of telephone n#mbers to write down$ They were n#mbers to telephone booths at vario#s
locations in the vicinity of his home$ 3ach booth had been coded 1,5,?,A, or E$ 2e instr#cted that the
ne&t time I called him, he wo#ld give me the code n#mber of the booth and a time to call$ I wo#ld
then call him at the designated booth$
3ight ho#rs later, I handed him a copy of my first boo), as a co#rtesy, then left %anhattan 7each
loaded with newspaper clippings and doc#ments, mostly relating to Casolaro!s investigation of the
Octop#s$ One pac)et was titled, /The onderf#l eapons of ac)enh#t,/ others related to the
Inslaw affair, Iran:Contra and vario#s savings and loan scandals$
In the van, reviewing the doc#ments, I wondered what relationship they had to %ariposa Co#nty
and why I was given the pac)et$ The doc#ments were far ranging, beyond anything I had heretofore
imagined$ 7#t within days of my visit to @#nderson, I wo#ld be introd#ced to the Octop#s$
GGGGGG
The following morning, at K=?6 a$m$, I received a collect call from a man who identified himself as
%ichael 4iconosci#to 8prono#nced 4iconoshooto9$ 4iconosci#to, calling from the Pierce Co#nty
0ail in Tacoma, ashington, said he had been informed by @#nderson that I was investigating a
corr#ption:dr#g ring in %ariposa Co#nty$ 4or ;< ,inutes Riconosciuto related the na,es o
those in char"e o ,etha,pheta,ine operations in (ariposa, (adera and 4resno counties#
( ton of methamphetamine had been sei;ed in the area of my investigations, according to
4iconosci#to$ Richard =no11i !as a hi"h level "coo/er" and 8i, De&ilva, 'en =al/a, and
others !ere ,ediu, level distri2utors or lieutenants# Cal)a was c#rrently serving time in a
Pleasanton prisonL 966 po#nds of methamphetamine had been sei;ed #nder his control$
/ho!s behind this ring*/ I as)ed$ 4iconosci#to pa#sed for a moment, then too) a deep breath$ "It3s
The Co,pany# %r,s "et shipped to the Contras, the %"hanistan re2els >(u0ahaden?, the
(iddle East# >o# )now, to fight the +oviet infl#ence$ 'ut the Contras and the (u0ahaden don3t
have ,oney to pay or ar,s, so they pay !ith dru"s, cocaine or heroin# The Co,pany handles
the dru" end o it in the U#& ###"
/hat!s The Company $$$*,/ I as)ed$ 4iconosci#to interr#pted, /ait a min#te$ It!s a long story$ >o#
have to start at the beginning$/ Concerned that 4iconosci#to might have to hang #p, I h#rriedly
p#shed for answers$ /(rms for dr#gs, do yo# have proof*/
/Oh, yeah$ It!s a selfs#pporting system, they don!t have to go thro#gh Congress $$$/
/%ichael,/ I pressed, /who ships the arms*/ 4iconosci#to "#ieted for a moment, gathering his
tho#ghts$ /Let!s start with ac)enh#t$ I didn!t play ball with ac)enh#t so they poisoned the well
for me$ I!m in 0ail beca#se I wor)ed for ac)enh#t$ The government has p#t together a very simple
dr#g case against me $$$ as if that!s what I!m abo#t, 0#st a dr#ggie$/
/Tell me abo#t ac)enh#t$/
/It!s a sec#rity corporation head"#artered in Coral @ables, ,lorida$ ac)enh#t provides sec#rity for
the .evada n#clear test site, the (las)an pipeline, Lawrence Livermore Labs, yo# )now, all the
high sec#rity government facilities in the D$+$ They have abo#t fifty tho#sand armed sec#rity
g#ards that wor) for minim#m wage or slightly above$
/On the other hand, on the ac)enh#t board of directors, they have all the former heads of every
government agency there ever was #nder 4onald 4eagan and @eorge 7#shL ,7I, CI(, .+(, +ecret
+ervice, etc$
/>o# )now, they!ve got retired (dmiral +tansfield T#rner, a former CI( directorL Clarence Celley,
former ,7I directorL ,ran) Carl#cci, former CI( dep#ty directorL <ames 4owley, former +ecret
+ervice directorL (dmiral 7obby 4ay Inman, former acting chairman of President 7#sh!s foreign
intelligence advisory board and former CI( dep#ty director$ 7efore his appointment as 4eagan!s
CI( director, the late illiam Casey was ac)enh#t!s o#tside legal co#nsel $$$/
I interr#pted him, wanting to )now where 23 fit into the pict#re*
/ell, I served as 'irector of 4esearch for the ac)enh#t facility at the Caba;on Indian reservation
in Indio, California$ In 19B?BA I modified the P4O%I+3 comp#ter software to be #sed in law
enforcement and intelligence agencies worldwide$ ( man named 3arl 7rian was spearheading a
plan for worldwide #se of the software, b#t essentially, the modified software was being pirated
from the owners, 7ill and .ancy 2amilton$/
I as)ed, /+o how did that ca#se yo#r arrest*/ %ichael was artic#late, b#t his story was becoming
complicated$ 2e contin#ed$ /I signed an affidavit for the 2amiltons stating that I had been
responsible for the modification$ The 2o#se <#diciary Committee on Inslaw was investigating the
theft of the software and I was afraid I wo#ld be implicated since I had performed the modification$
.ine days later, in an attempt to discredit my testimony, I was arrested for allegedly operating a
dr#g lab$/
I didn!t want to p#sh 4iconosci#to on the s#b0ect of a dr#g lab at that point, b#t voiced my foremost
concern$ /ill the 2o#se <#diciary Committee be bringing yo# in to testify*/
/3vent#ally, yes$/
/(re yo# in any danger where yo# are right now*/ I was #naware at the time that 4iconosci#to had
been recr#ited at +tanford Dniversity into the CI( nearly twenty years earlier, and danger was a
matter of fact in his life$
/Oh, yo# betO +everal of the 0ail g#ards here moonlight for ac)enh#t here in Tacoma$/
4iconosci#to went on to disc#ss the ac)enh#t set#p$ /7asically, what yo# have is a gro#p of
politically well connected people thro#gh ac)enh#t who wanted to get 0#icy defense contracts
when 4onald 4eagan got elected president$ (nd they didO They also preyed on high tech start #p
companies, many of them o#t of +ilicon -alley in California$
/They saw technology that they wanted and they either forced the companies into ban)r#ptcy or
waited on the sidelines, li)e v#lt#res, and pic)ed them #p for pennies after they were ban)r#pt$/
I made prof#se notes as 4iconosci#to spo)e, not )nowing where he was leading, b#t ass#ming his
narrative wo#ld event#ally intersect with ,y investi"ation o "overn,ent sanctioned dru"
operations# ,inally it did$ (ccording to 4iconosci#to, Wac/enhut Corporation ",ade inroads"
into the ,etha,pheta,ine operation# % ,an na,ed Richard =no11i alle"edly headed ,a0or
"overn,ent sanctioned ,eth la2oratories in 4resno, (adera and (ariposa counties# % ,an
na,ed %l $ol2ert, a or,er Israeli intelli"ence oicer !ith U#&# citi1enship, !as the liaison or
connection 2et!een the =no11i operation and the U#&# "overn,ent#
In s#bse"#ent doc#ments obtained from %ichael!s secret hiding place in the California desert, I
located doc#ments which indicated %ichael had first been recr#ited into the CI( by (l 2olbert$
2owever, d#ring this first of many phone conversations with 4iconosci#to, I fo#nd myself
searching for a beginning, something concrete to get a foothold$ /%ichael, is there any proof that
yo# wor)ed at ac)enh#t*/
%ichael responded diffidently$ /C.. recently ran a piece, and they filmed a location shot from the
par)ing lot of the casino$ Then they aired another location shot on the ICaba;onJ reservation of 0#st
an e&panse of bare land, bl#e s)y, sand and sagebr#sh$ Then the narrator says, N2ere on the Indian
reservation is where %ichael 4iconosci#to claims to have modified the P4O%I+3 software$! They
didn!t show the tribal office comple&, they didn!t show the ind#strial par)$ They showed a bare
e&panse of land, li)e I had a comp#ter o#t in a teepee in the middle of the desertO The government is
doing a character assassination on me$ I!m fair game now that I!m in 0ail, beca#se I!ve raised too
many provocative "#estions, yo# )now, and they!re trying to relegate me to the area of del#sion $$$/
GGGGGG
,or three months 4iconosci#to called daily from the Pierce Co#nty 0ail in Tacoma, ashington$ (t
his re"#est, I attached a tape recorder to my phone and #nraveled a complicated web of illegal
overseas arms shipments, espionage, CI( dr#g traffic)ing, biological warfare development,
comp#ter software theft, money la#ndering and corr#ption at the highest levels of government$
Thro#gho#t this time span, I also obtained every newspaper and maga;ine article I co#ld lay my
hands on relative to 4iconosci#to!s bac)gro#nd and contacts$ 4iconosci#to had been
comm#nicating reg#larly with 0o#rnalist 'anny Casolaro prior to his death on (#g#st 16, 1991
when 'anny!s n#de body was fo#nd in the batht#b of room E1K of the +heraton 2otel in
%artinsb#rg, est -irginia$ 2is wrists had been slashed ten or twelve times$ .o papers were fo#nd
in his hotel room or in his car, tho#gh he was )nown to cart a briefcase and files everywhere he
went$ (n Q(cto blade fo#nd in the batht#b was not sold locally and his briefcase is still missing to
this day$Casolaro was wor)ing on a boo) entitled, /7ehold a Pale 2orse,/ which encompassed the
October +#rprise story, the Inslaw comp#ter software case, the Iran:Contra affair, the 7$C$C$I$
scandal, and %$C$($ entertainment corporation, all overlapping and interconnecting into one
networ) which he d#bbed, /The Octop#s$/
2e told friends that he /had traced the Inslaw and related stories bac) to a dirty CI% @Old 'oy3
net!or/" that had beg#n wor)ing together in the 19E6!s aro#nd the (lbania covert operations$
These ,en had "otten into the ille"al "un and dru" trade 2ac/ then and had contin#ed in that
b#siness ever since$
7efore his death, 'anny had made plans to visit the ac)enh#t Corporation in Indio, California,
and even considered naming his boo), /Indio$/
C$%)TER ;
The history of ac)enh#t Corporation is best described from its own literat#re$ (n o#tdated letter
of introd#ction typed on ac)enh#t letterhead once sent to prospective clients provided me with the
following profile= 83&cerpted9 /ac)enh#t Corporation had its beginnings in 19EA, when @eorge 4$
ac)enh#t and three other former +pecial (gents of the ,ederal 7#rea# of Investigation formed a
company in %iami, +pecial (gent Investigators, to provide investigative services to b#siness and
ind#stry$
/The approach was so well received that a second company was formed in 19EE to apply the same
philosophy to physical sec#rity problems$ In 19EB the companies were combined #nder the name of
ac)enh#t Corporation, a ,lorida company$ ,rom the o#tset, @eorge ac)enh#t was President and
chief e&ec#tive officer of the enterprise$ ac)enh#t established its head"#arters in Coral @ables,
,lorida in 1966, e&tending its physical sec#rity operations to the Dnited +tates government thro#gh
formation of a whollyowned s#bsidiary, ac)enh#t +ervices, Incorporated$ This was done in order
to comply with federal stat#te prohibiting the government from contracting with companies which
f#rnish investigative or detective services$
/In 1965, ac)enh#t operations e&tended from ,lorida to California and 2awaii$ On <an#ary 1,
1966, the company became international with offices in Caracas, -ene;#ela, thro#gh half ownership
of an affiliate$
/The ac)enh#t Corporation became p#blic in 1966 with overtheco#nter stoc) sales and 0oined the
(merican +toc) 3&change in 196K$ Thro#gh ac"#isitions of s#bsidiaries and affiliates, now totaling
more than 56, and e&pansion of it contracts into n#mero#s territories and foreign co#ntries, the
ac)enh#t Corporation has grown into one of the world!s largest sec#rity and investigative firms$
/In 19KB ac"#isition of .D+(C, a -irginia company providing technical and cons#lting services to
the n#clear ind#stry, bro#ght ac)enh#t into the fields of environment and energy management$ In
19K9, ac)enh#t ac"#ired +tellar +ystems, Inc$, a California company speciali;ing in o#tdoor
electronic sec#rity$
/The e&ec#tive ma)e#p of the company reflects the stress %r$ ac)enh#t placed on professional
leadership$ The Wac/enhut Corporation is "uided 2y e5ecutives and ,ana"ers !ith e5tensive
2ac/"rounds in the 4'I and other ,ilitary, "overn,ental and private security and
investi"ative ields#
/The principle b#siness of the company is f#rnishing sec#rity and complete investigative services
and systems to b#siness, ind#stry and professional clients, and to vario#s agencies of the D$+$
@overnment$
"Throu"h a !hollyo!ned su2sidiary, Wac/enhut Electronic &yste,s Corporation, the
co,pany develops and produces sophisticated co,puteri1ed security syste,s to complement
its g#ard services$
/%a0or clients of ac)enh#t!s investigative services are the ins#rance ind#stry and financial
interests$ These services incl#de ins#rance inspections, corporate ac"#isition s#rveys, personnel
bac)gro#nd reports, preemployment screening, polygraph e&aminations and general criminal, fra#d
and arson investigations$
/The wide variety of services offered by ac)enh#t Corporation also incl#des g#ard and electronic
sec#rity for ban)s, office b#ildings, apartments, ind#strial comple&es and other physical str#ct#resL
training programs in 3nglish and foreign lang#ages to apply ac)enh#t proced#res to individ#al
clients needsL fire, safety and protective patrolsL resc#e and first aid servicesL emergency s#pport
programs tailored to labormanagement disp#tes, and predepart#re screening programs widely #sed
by airports and airlines$
/The company now has some 56,666 employees and maintains close to *AA oices and acilities
!ith operations spread across the United &tates and e5tendin" into Canada, the United
=in"do,, Western Europe, the (iddle East, Indonesia, Central and &outh %,erica and the
Cari22ean#"
GGGGGG
On the s#rface, ac)enh#t Corporation seemed innoco#s eno#gh, b#t thro#gh doc#ments later
obtained from %ichael 4iconosci#to, I learned there was another, dar)er side to ac)enh#t
operations, at the Caba;on Indian reservation near Indio, California$
7eca#se Indian reservations are sovereign nations and do not come #nder federal 0#risdiction,
ac)enh#t International had formed a partnership and entered into a b#siness vent#re with the
Caba;on Indians to prod#ce hightech arms and e&plosives for e&port to thirdworld co#ntries$ This
mane#ver was designed to evade congressional prohibitions against D$+$ weapons being shipped to
the Contras and middle eastern co#ntries$
In the early 19B6!s, 'r$ <ohn .ichols, the Caba;on tribal administrator, obtained a department of
'efense secret facility clearance for the reservation to cond#ct vario#s research pro0ects$ .ichols
then approached ac)enh#t with an elaborate /0oint vent#re/ proposal to man#fact#re 156mm
comb#stible cartridge cases, 9mm machine pistols, lasersighted assa#lt weapons, sniper rifles and
portable roc)et systems on the Caba;on reservation and in Latin (merica$ (t one point, he even
so#ght to develop biological weapons$
(gain, thro#gh %ichael 4iconosci#to!s files, I later obtained interoffice memorand#ms and
correspondence relating to biological technology, b#t more on that in chapter 16$ %eanwhile, in
19B6, 'r$ <ohn .ichols obtained the bl#eprints to Crown Prince ,ahd!s palace in Tiaf, +a#di (rabia,
and drafted a plan to provide sec#rity for the palace$
The +a#dis were interested eno#gh to cond#ct a bac)gro#nd chec) on the Caba;ons$ %ohammad
<ameel 2ashem, cons#l of the 4oyal 3mbassy of +a#di (rabia in ashington, '$C$, wrote former
+o#th 'a)ota +enator <ames (bo#re;) at his offices in ashington '$C$ and noted, /(ccording to
o#r blac) list for companies, the Caba;on 7and of %ission Indians:Caba;on Trading Company and
ac)enh#t International are not incl#ded$/ Translated, that meant that neither the Caba;ons or
ac)enh#t were <ewishr#n enterprises$
@eorge ac)enh#t!s political leanings were once described in a boo) entitled, /The (ge of
+#rveillance, The (ims and %ethods of (merica!s Political Intelligence +ystem,/ by ,ran) <$
'onner 8Cnopf, 19B69, pp$ A5AA5E as s#ch= /The agency!s Iac)enh#tJ professional concerns
reflect the political val#es of its director, @eorge ac)enh#t$ ( rightist of the old blood, he selected
as his directors an assortment of #ltras prominent in the <ohn 7irch +ociety, the (+C, and other
rightwing gro#ps$ The agency!s monthly ho#se organ, the Nac)enh#t +ec#rity 4eview,!
systematically decried the s#bversive inspiration in virt#ally all the protest movements of the
si&ties, from civil rights to peace$ This vigilance earned the p#blication the accolade of rightwing
organi;ations, inl#ding 8in 19659 the @eorge ashington 2onor %edal and the ,reedom
,o#ndation (ward at -alley ,orge, PennsylvaniaL and 8in 196E and 19669 the -igilant Patriots
(ward from the (ll(merican Conference to Combat Comm#nism$/
GGGGGG
Of all the articles written abo#t ac)enh#t Corporation, probably the most provacative was written
by <ohn Connolly for +P> maga;ine, p#blished in +eptember 1995, pp$ A6EA$ Connolly, a former
.ew >or) police officer t#rned writer, began his story with the following introd#ction= /hat* (
big private company one with a board of former CI(, ,7I and Pentagon officialsL one in charge of
protecting n#clearweapons facilities, n#clear reactors, the (las)an oil pipeline and more than a
do;en (merican embassies abroadL one with longstanding ties to a radical rightwing organi;ationL
one with ?6,666 men and women #nder arms secretly helped IraB in its eort to o2tain
sophisticated !eaponsC (nd f#eled #nrest in -ene;#ela* This is all the plot of a new bestselling
thriller, right* Or the ravings of some overheated conspiracy b#ff, right* 4ight* 4O.@$/
Connolly highlighted @eorge ac)enh#t as a /hardline rightwinger/ who was able to profit from
his beliefs by b#ilding dossiers on (mericans s#spected of being Comm#nists or leftleaning
/s#bversives and sympathi;ers/ and selling the information to interested parties$ 7y 196E ,
ac)enh#t was boasting to potential investors that the company maintained files on 5$E million
s#spected dissidents one in A6 (merican ad#lts then living$
In 1966, after ac"#iring the private files of Carl 7arslaag, a former staff member of the 2o#se
Committee on Dn(merican (ctivities, ac)enh#t co#ld confidently maintain that with more than A
million names, it had the largest privately held file on s#spected dissidents in (merica$
Connolly wrote that it was not possible to overstate the special relationship that ac)enh#t en0oys
with the federal government$ Richard 'a2ayan, clai,in" to 2e a CI% contract e,ployee, told
&). that "Wac/enhut has 2een used 2y the CI% and other intelli"ence a"encies or years#
When they >the CI%? need cover, Wac/enhut is there to provide it or the,#"
(nother CI( agent, 7r#ce 7erc)mans, who was assigned to the CI( station in %e&ico City, b#t left
the agency in <an#ary 19KE 8p#tatively9 to become a ac)enh#t internationaloperations vice
president, told +P> that he had seen a or,al proposal su2,itted 2y 6eor"e Wac/enhut to the
CI% oerin" Wac/enhut oices throu"hout the !orld as ronts or CI% activities# In 19B1,
7erc)mans 0oined with other senior ac)enh#t e&ec#tives to form the company!s +pecial Pro0ects
'ivision$ It !as this division that lin/ed up !ith e5CI% ,an Dr# 8ohn )hillip Nichols, the
Ca2a1on tri2al ad,inistrator, in pursuit o a sche,e to ,anuacture e5plosives, poison "as
and 2iolo"ical !eapons or e5port to the contras and other co,,unist i"htin" re2els
!orld!ide#
+P> also printed testimony from illiam Corbett, a terrorism e&pert who spent 1B years as a CI(
analyst and is now an (7C .ews cons#ltant in 3#rope$ &aid Cor2ett, "4or years Wac/enhut has
2een involved !ith the CI% and other intelli"ence or"ani1ations, includin" the DE%#
Wac/enhut !ould allo! the CI% to occupy positions !ithin the co,pany >in order to carry
out? clandestine operations#"%dditionally, Cor2ett said that Wac/enhut supplied intelli"ence
a"encies !ith inor,ation, and it !as co,pensated or this "in a Buid pro Buo arran"e,ent"
with government contracts worth billions of dollars over the years$
On page E1, in a bo& entitled, /C#rrent and ,ormer ac)enh#t 'irectors,/ +P> p#blished the
following names= "8ohn %,,arell, or,er 4'I a"entD Ro2ert Chasen, or,er 4'I a"entD
Clarence =elly, or,er 4'I directorD Willis $a!/ins, or,er assistant secretary o the %r,yD
)aul E# =elley, ourstar "eneral +ret#-, U#&# (arine CorpsD &eth (c=ee, or,er co,,ander in
chie, North %,erican %ir Deense Co,,andD 'ernard &chriever, or,er ,e,2er,
)resident3s 4orei"n Intelli"ence %dvisory 'oardD 4ran/ Carlucci, or,er Deense &ecretary
and or,er deputy CI% directorD 8oseph Carroll, or,er director, Deense Intelli"ence
%"encyD 8a,es Ra!ley, or,er director, U#&# &ecret &erviceD 'o22y Ray In,an, or,er
deputy CI% director#"
C$%)TER <
'anny Casolaro!s body was fo#nd at 15=?6 p$m$ in a bloodfilled bath t#b by a hotel maid who called
the %artinsb#rg police$ The body contained three deep c#ts on the right wrist and seven on the left
wrist, made by a single edge ra;or blade, the )ind #sed to scrape windows or open pac)ages$(t the
bottom of the bathwater was an empty %ilwa#)ee beer can, a paper glass coaster, the ra;or blade
and two white plastic trash bags, the )ind #sed in wastepaper bas)ets$On the des) in the hotel room
was an empty mead composition noteboo) with one page torn o#t and a s#icide note which read=
/To those who I love the most, please forgive me for the worst possible thing I co#ld have done$
%ost of all, I!m sorry to my son$ I )now deep down inside that @od will let me in$/
There were no other papers, folders, doc#ments of any sort, nor any briefcase fo#nd in the room$
'anny!s wallet was intact, st#ffed with credit cards$The body was removed from the t#b by
Lie#tenant 'ave 7rining from the %artinsb#rg fire department, and his wife, +andra, a n#rse who
wor)s in the hospital emergency room$ The co#ple, who often moonlighted as coroners, too) the
body to the 7rown ,#neral 2ome where they cond#cted an e&amination$Charles 7rown then
decided to embalm the body that night and go home, rather than come bac) to wor) the ne&t day,
+#nday$
.o one in 'anny Casolaro!s family had been notified of his death at that time, nor had they
re"#ested the body be embalmed$hen Casolaro!s family learned of the death, they insisted it was
not a s#icide and called for an a#topsy and an investigation$ Tho#gh the body had already been
embalmed, an a#topsy was performed at the est -irginia Dniversity 2ospital by a 'r$ ,rost$ The
findings indicated that no str#ggle had ta)en place beca#se there were no recent br#ises on the
body$ The dr#gs fo#nd in Casolaro!s #rine, blood and tiss#e samples were in min#te amo#nts b#t
they were also #ne&plainable by his brother, Tony, who is a medical doctor$
(ccording to Tony Casolaro, 'anny did not ta)e dr#gs or have any prescriptions for the dr#g traces
of 2ydrocodone and Tricyclic antidepressant that were fo#nd in the body$ .o pill bo&es or written
prescriptions were fo#nd$ 'r$ Casolaro searched thro#gh his brother!s 7l#e Cross records and fo#nd
no record of the prescriptions or doctor visits$
'#ring the a#topsy of the body, 'r$ ,rost had fo#nd lesions within the brain which were
characteristic of %#ltiple +clerosis$ It was possible that 'anny was having bl#rring of vision, b#t
'r$ ,rost downplayed the possibility that this contrib#ted to any s#icide$ Of partic#lar interest, was
,rost!s observation that the deep ra;or wo#nds on 'anny!s wrists were inflicted /witho#t any
hesitation mar)s$/ 2owever, the lac) of hesitation did not indicate one way or the other whether
they were or were not selfinflicted$Investigators and police never fo#nd 'anny!s missing briefcase$
On (#g#st 6, 1991, Casolaro!s ho#se)eeper, Olga, helped 'anny pac) a blac) leather tote bag$ +he
remembered he also pac)ed a thic) sheaf of papers into a dar) brown or blac) briefcase$ +he as)ed
him what he had p#t into the briefcase and he replied, /I have all my papers $$$/ 2e had been typing
for two days, and as he left the ho#se, he said, /ish me l#c)$ I!ll see yo# in a co#ple of days$/
7y (#g#st 9th, Casolaro!s friends were alarmed$ .oone had heard from him and Olga was receiving
threatening phone calls at 'anny!s home$ On +at#rday, (#g#st 16th, Olga received another call, a
man!s voice said, />o# son of a bitch$ >o#!re dead$/(fter learning of 'anny!s death, Olga recalled
seeing 'anny sitting in the )itchen on (#g#st Eth with a /heavy man $$$ wearing a dar) s#it$ 2e was
a dar) man with blac) hair he t#rned towards the door, I saw he was dar)s)inned$ I told police
maybe he co#ld be from India$/
(t ?=66 p$m$ on ,riday, the day before 'anny!s death, 7ill T#rner, a friend and confidante, met
'anny in the par)ing lot of the +heraton 2otel to deliver some papers to him$ The papers allegedly
consisted of two sealed pac)ages which T#rner had been )eeping in his safe at home for 'anny, and
a pac)et of 2#ghes (ircraft papers which belonged to T#rner$
'anny had appeard e&h#berant to most of his friends before his death, noting that he was abo#t to
/wrap #p/ his investigation of The Octop#s$ Casolaro was trying to prove that the alleged theft of
the Inslaw comp#ter program, P4O%I+3, was related to the October +#rprise scandal, the
IranContra affair and the collapse of 7CCI 87an) of Credit and Commerce International9$
T#rner later admitted to police that he had indeed met with 'anny on (#g#st 9th, b#t at that time he
ref#sed to specify what time and wo#ld not describe what was in the papers he delivered to 'anny$ I
later learned that T#rner had been investigating discrepancies involving his former employer,
2#ghes (ircraft Company$ The doc#ments he had delivered from his safe to 'anny had been
sealed, with Casolaro!s name written across the seal, and he claimed not to have )nown what they
contained$.evertheless, it is feasible to ass#me that T#rner may have )nown who 'anny was
preparing to meet that evening at the %artinsb#rg 2otel beca#se, for reasons of his own, T#rner
apparently wanted 'anny to show the 2#ghes (ircraft doc#ments to whoever he was meeting with$
T#rner later noted to reporters that he was /scared shitless/ abo#t information he had seen
connecting Ollie .orth and 7CCI$ /I saw papers from 'anny that connected bac) thro#gh the
Ceating ,ive and +ilverado Ithe failed 'enver + M L where .eil 7#sh had been an officerJ,/ he
said$
To his friend, 7en %ason, 'anny showed a 55point o#tline for his boo)$ Incl#ded in the
information he shared with %ason were papers referring to IranContra arms deals$ Photocopies of
chec)s made o#t for P1 million and PA million drawn on 7CCI acco#nts held for (dnan Chashoggi,
and international arms merchant and factot#m for the 2o#se of +a#d, and by %an#cher
@horbanifar, an arms dealer and IranContra middleman, were presented$
/The last sheet,/ noted %ason, /was a passport of some g#y named Ibrahim$/ Casolaro had
emphasi;ed that Ibrahim had made a big deal of showing him 8Casolaro9 his /3gyptian/
passport$/Ibrahim/ was obvio#sly the informant whom Olga, Casolaro!s ho#se)eeper, had seen
sitting in the )itchen with 'anny on (#g#st Eth$ $assan %li I2rahi, %li, 2orn in *F9G, !as later
identiied as the ,ana"er o &itico, an alle"ed IraBi ront co,pany or ar,s purchases#
Casolaro had o2tained these papers ro, 'o2 'ic/el, who in t#rn obtained them from October
+#rprise so#rce 4ichard 7renne)e$
(ri 7en%enasche, a self proclaimed Israeli military intelligence officer, was responsible for the
tipoff to an obsc#re Le2anese ,a"a1ine a2out !hat later 2eca,e /no!n as the IranContra
scandal# (fter Casolaro!s death, %enasche called 7ill 2amilton, the president of Inslaw Company
and creator of the P4O%I+3 software$ 82amilton had been in daily contact with Casolaro #ntil
abo#t a wee) prior to his death9$
(enasche clai,ed that t!o 4'I a"ents ro, Le5in"ton, =entuc/y, had e,2ar/ed on a trip to
(artins2ur" to ,eet Casolaro as part of their investigation of the sale of the P4O%I+3 software
to Israel and other intelligence agencies$'en (enasche told $a,ilton that one o the 4'I a"ents,
E#'# Cartinhour, !as disaected 2ecause his superiors had reused to indict hi"h Rea"an
oicials for their role in the October +#rprise$ 7en %enasche claimed the agents were prepared to
give Casolaro proof that the ,7I was illegally #sing P4O%I+3 software$
It is highly #nli)ely that the two ,7I agents were enro#te to %artinsb#rg to @I-3 anything to
Casolaro, b#t they may well have been on their way to obtain 2I+ doc#ments and those belonging
to 7ill T#rner$ If, in fact, 'anny had disclosed to any one of the many /so#rces/ he had developed
d#ring his investigation, that he !as turnin" over his docu,ents to the Le5in"ton 4'I, that may
well have alarmed a few of them$
Casolaro was also investigating Colonel 7o @rit;!s e&pose of CI( dr#g traffic)ing, and had
re"#ested to meet with a former police officer who had information on Laotian warlord C#hn +a!s
@olden Triangle dr#g trade proposal to the D$+$ 2e had learned thro#gh a +acramento 7ee
newspaper article, dated <#ne 5, 1996 that Patric) %oriarty, the 4ed 'evil firewor)s magnate
convicted of la#ndering political contrib#tions and bribing city officials in +acramento, had been
s#bpoenaed to testify on behalf of @rit; at his trial in Las -egas where he was tried for #sing a false
passport$ @rit; was ac"#itted of the charges$
%oriarty!s lawyer, <an Lawrence 2and;li), told the 7ee that (oriarty had paid 6rit1 to ,a/e
2usiness trips to China, &in"apore and other parts o %sia# 6rit1 said his 2usiness trip to %sia
in 8uly *FGF was for the p#rpose of negotiating an oil interest that he and %oriarty had set #p
between the People!s 4ep#blic of China and Indonesia$
It is noteworthy that )atric/ (oriarty is the lon"ti,e +:A years- partner o (arshall
Riconosciuto, (ichael Riconosciuto3s ather# They o!ned several Caliornia 2usinesses
to"ether, t!o o !hich !ere $ercules Research Corporation, o !hich (ichael !as a partner,
and Pyrotronics Corporation$
GGGGGG
Casolaro at one time considered the title of /Indio/ for the boo) he was writing abo#t /The
Octop#s$/ 2is death occ#rred 0#st days before he planned to visit the Caba;on Indian reservation
near Indio, California$ Tho#gh his notes did not div#lge what role the Caba;ons may have had in
the conspiracy, Casolaro listed Dr# 8ohn )hillip Nichols, the Ca2a1on ad,inistrator, as a
or,er CI% a"ent#
( so#rce of information which 'anny may have read is entitled, /'(4C -ICTO4>, 4onald
4eagan, %C(, and the %ob,/ by 'an 3$ %oldea$ %oldea named this #nholy alliance /The
Octop#s/ in his boo)$
.#mero#s p#blications reporting on Casolaro!s death corroborated that one of his so#rces incl#ded
%ichael 4iconosci#to, a /AAyearold former hightech scientist who had connections with ac)enh#t
Corporation $$$/ hat bro#ght Casolaro to 4iconosci#to was an affidavit signed by 4iconosci#to
claiming that when he wor)ed on the ac)enh#tCaba;on pro0ect, he was given a copy of the Inslaw
software by 3arl 7rian for modification$ 4iconosci#to also swore that Peter -idenie)s, a <#stice
'epartment official associated with the Inslaw contract, had visited the ac)enh#tCaba;on pro0ect
with 3arl 7rian$
3arl 7rian was a b#sinessman and 3dwin %eese crony who served in @overnor 4onald 4eagan!s
cabinet in California$The P6 million in software stolen from illiam and .ancy 2amilton,
coowners of Inslaw Company, was allegedly sold by the <#stice 'epartment thro#gh 3arl 7rian to
raise offtheboo)s money for covert government operations$
On %ay 1B, 1996, 4iconosci#to had called the 2amiltons and informed them that the Inslaw case
was connected to the October +#rprise affair$ 4iconosci#to claimed that he and 3arl 7rian had
traveled to Iran in 19B6 and paid PA6 million to Iranian officials to pers#ade them .OT to release
the hostages before the presidential election in which 4eagan became president of the Dnited +tates$
4iconosci#to!s information created a domino effect in ashington '$C$, opening n#mero#s
investigations and ca#sing a media blit;$ (t that time, Casolaro headed the 2amilton!s private
investigation of the theft of their software and he had reg#lar comm#nication with 4iconosci#to$
,ormer D$+$ (ttorney @eneral 3lliott 4ichardson, the 2amilton!s attorney, s#bse"#ently sent
4iconosci#to an affidavit to sign, to be filed by Inslaw in federal co#rt in connection with Inslaw!s
pending %otion for Limited 'iscovery$ The affidavit, Case .o$ BE666K6, entered into co#rt records,
res#lted in 4iconosci#to!s arrest within days$ It read as follows=
/I %ichael <$ 4iconosci#to, being d#ly sworn, do hereby state as follows=
/819 '#ring the early 19B6!s, I served as the 'irector of 4esearch for a 0oint vent#re between the
ac)enh#t Corporation of Coral @ables, ,lorida, and the Caba;on 7and of Indians of Indio,
California$ The 0oint vent#re was located on the Caba;on reservation$
/859 The ac)enh#tCaba;on 0oint vent#re so#ght to develop and:or man#fact#re certain materials
that are #sed in military and national sec#rity operations, incl#ding night vision goggles, machine
g#ns, uelair e5plosives, and 2iolo"ical and che,ical !arare !eapons#
/8?9 The Caba;on 7and of Indians are a sovereign nation$ The sovereign imm#nity that is accorded
the Caba;ons as a conse"#ence of this fact made it feasible to p#rs#e on the reservation the
development and:or man#fact#re of materials whose development or man#fact#re wo#ld be s#b0ect
to stringent controls off the reservation$ (s a minority gro#p, the Caba;on Indians also provided the
ac)enh#t Corporation with an enhanced ability to obtain federal contracts thro#gh the B( +et
(side Program, and in connection with @overnmentowned contractoroperated 8@OCO9 facilities$
/8A9 The ac)enh#tCaba;on 0oint vent#re was intended to s#pport the needs of a n#mber of foreign
governments and forces, incl#ding forces and governments in Central (merica and the %iddle 3ast$
The Contras in .icarag#a represented one of the most important priorities for the 0oint vent#re$
/8E9 The Wac/enhutCa2a1on 0oint venture ,aintained close liaison !ith certain ele,ents o
the United &tates 6overn,ent, includin" representatives o intelli"ence, ,ilitary and la!
enorce,ent a"encies#
/869 (mong the fre"#ent visitors to the ac)enh#tCaba;on 0oint vent#re were Peter -idenie)s of
the D$+$ 'epartment of <#stice in ashington, '$C$, and a close associate of -idenie)s by the name
of 3arl $ 7rian$ 7rian is a private b#sinessman who lives in %aryland and who has maintained
close ties with the D$+$ intelligence comm#nity for many years$
/8K9 In connection with my wor) for ac)enh#t, I engaged in some software development and
modification wor) in 19B? and 19BA on the proprietary P4O%I+ comp#ter software prod#ct$ The
copy of P4O%I+ on which I wor)ed came from the D$+$ 'epartment of <#stice$ 3arl $ 7rian
made it available to me thro#gh ac)enh#t after ac"#iring it from Peter -idenie)s, who was then a
'epartment of <#stice contracting official with responsibility for the P4O%I+3 software$ I
performed the modifications to P4O%I+ in Indio, CaliforniaL +ilver +pring, %arylandL and %iami,
,lorida$
/8B9 The p#rpose of the P4O%I+3 software modifications that I made in 19B? and 19BA was to
s#pport a plan for the implementation of P4O%I+ in law enforcement and intelligence agencies
worldwide$ 3arl $ 7rian was spearheading the plan for this worldwide #se of the P4O%I+3
comp#ter software$
/899 +ome of the modifications that I made were specifically designed to facilitate the
implementation of P4O%I+ within two agencies of the @overnment of CanadaL the 4oyal Canadian
%o#nted Police 84C%P9 and the Canadian +ec#rity and Intelligence +ervice 8C+I+9$ 3arl $ 7rian
wo#ld chec) with me from time to time to ma)e certain that the wor) wo#ld be completed in time
to satisfy the sched#le for the 4C%P and C+I+ implementations of P4O%I+$
/8169 The proprietary version of P4O%I+, as modified by me, was, in fact, implemented in both the
4C%P and the C+I+ in Canada$ It was my #nderstanding that 3arl $ 7rian had sold this version of
P4O%I+ to the @overnment of Canada$
/8119 In ,ebr#ary 1991, I had a telephone conversation with Peter -idenie)s, then still employed by
the D$+$ 'epartment of <#stice$ -idenic)s attempted d#ring this telephone conversation to pers#ade
me not to cooperate with an independent investigation of the government!s piracy of Inslaw!s
proprietary P4O%I+ software being cond#cted by the Committee on the <#diciary of the D$+$
2o#se of 4epresentatives$
/8159 -idenie)s stated that I wo#ld be rewarded for a decision not to cooperate with the 2o#se
<#diciary Committee investigation$ -idenie)s forecasted an immediate and favorable resol#tion of a
protracted child c#stody disp#te being prosec#ted against my wife by her former h#sband, if I were
to decide not to cooperate with the 2o#se <#diciary Committee investigation$
/81?9 -idenie)s also o#tlined specific p#nishments that I co#ld e&pect to receive from the D$+$
'epartment of <#stice if I cooperate with the 2o#se <#diciary Committee!s investigation$
/81A9 One p#nishment that -idenie)s o#tlined was the f#t#re incl#sion of me and my father in a
criminal prosec#tion of certain b#siness associates of mine in Orange Co#nty, California, in
connection with the operation of a savings and loan instit#tion in Orange Co#nty$ 7y way of
#nderscoring his power to infl#ence s#ch decisions at the D$+$ 'epartment of <#stice, -idenie)s
informed me of the indictment of these b#siness associates prior to the time when that indictment
was #nsealed and made p#blic$
/81E9 (nother p#nishment that -idenie)s threatened against me if I cooperate with the 2o#se
<#diciary Committee is prosec#tion by the D$+$ 'epartment of <#stice for per0#ry$ -idenie)s warned
me that credible witnesses wo#ld come forward to contradict any damaging claims that I made in
testimony before the 2o#se <#diciary Committee, and that I wo#ld s#bse"#ently be prosec#ted for
per0#ry by the D$+$ 'epartment of <#stice for my testimony before the 2o#se <#diciary Committee$/
It is noteworthy that in <an#ary, 1995 when I obtained bo&es of %ichael 4iconosci#to!s hidden
doc#ments, incl#ded in those doc#ments were handwritten pages of telephone n#mbers belonging
to vario#s ashington '$C$ dignitaries$ One n#mber, /85659 A566KB9/ was listed as belonging to
/P-,/ b#t it was no longer in service$
GGGGGG
'anny Casolaro was, of co#rse, intent on interviewing Peter -idenie)s$ ( strange coincidence
occ#rred d#ring the wee) prior to his death$ hile sitting in a p#b, having a beer, a man named
<oseph C#ellar approached him and they began tal)ing$ (t some point d#ring the conversation,
'anny disclosed the contents of his investigation and e&pressed a desire to interview Peter
-idenie)s$
To 'anny!s astonishment, C#ellar, claiming to be a +pecial ,orces operative, said he co#ld arrange
a rendevo#s between Peter -idenie)s and Casolaro$ C#ellar!s connection to Peter -idenie)s
allegedly came thro#gh -idenie)s! wife, 7arbara, who was the e&ec#tive assistant to the powerf#l
West 7ir"inia De,ocratic &enator, Ro2ert 'yrd# 'yrd played a ,a0or role in the eort to
have the CI% ,ove so,e o its ad,inistrative oices to Charlesto!n, 56 miles from
%artinsb#rg, on the -irginia border$ It was apparently thro#gh 7arbara -idenie)s that C#ellar
intended to arrange the interview$
Casolaro confided to friends that he was #nnerved by this s#pposedly chance meeting$ 2e met with
C#ellar at other times that wee), b#t it is #n)nown whether he ever spo)e with -idenie)s$ To date,
that "#estion remains #nanswered$
+ignificantly, 3lliot 4ichardson, the respected former D$+$ (ttorney @eneral representing Inslaw,
called for the appointment of a special co#nsel to loo) into the death of Casolaro$
C$%)TER H
(t %ichael 4iconosci#to!s trial in Tacoma ashington, Peter -idenie)s testified that while wor)ing
for the <#stice 'epartment he had contact with the P4O%I+3 software$ 2e /cond#cted the
competitive contract competitive proc#rement for ac"#isition of the services to implement
P4O%I+3$/Dnder cross e&amination he testified that /it re"#ired preparation of a re"#est for
proposals iss#ance of that doc#ment to ind#stry $$$ negotiating, selecting, and awarding the contract$
Then after award, administering the contract to see that the wor) that the government paid for was
properly performed$/
+o, essentially, -idenie)s administered the Inslaw contract with the government$ 2is employment
record incl#ded wor) with the Internal 4even#e +ervice as a reven#e officer from 196A to 196K$
,rom 196K to 19K5 as a contract specialist with .(+($ ,rom 19K5 to 19K? with C#stoms as a
contract specialist$ ,rom 19K? thro#gh 19KE bac) at .(+( as a contract specialist$ ,rom 19KE
thro#gh 19B1 as a contract specialist with C#stoms, s#pervisory at this time$ ,rom 19B1 thro#gh
+eptember, 1996, with the 'epartment of <#stice as a contract specialist$ (nd from +eptember 1996
thro#gh present 8<an#ary 19959 as a s#pervisory contract specialist at C#stoms again$
Thomas Olmstead, 4iconosci#to!s attorney, showed -idenie)s the Inslaw affidavit signed by
4iconosci#to$ -idenie)s said he had seen the affidavit prior to co#rt, b#t testified that he!d never
heard of the ac)enh#tCaba;on 0oint vent#re and never visited the ac)enh#tCaba;on facility in
Indio, California$ 2e also testified that he!d never met 3arl 7rian$
Olmstead as)ed -idenie)s if he )new Ro2ert Chasen >E5ecutive 7ice )resident o Wac/enhut?C
-idenie)s testified that he )new him /by name since he was head of C#stoms for abo#t a threeyear
period, from abo#t 19KK thro#gh 19B6$ I ,et hi, once in the line o ,y duties#"
Interestingly, according to his res#me, Ro2ert Chasen !as Co,,issioner o Custo,s in
Washin"ton D#C# ro, *FHF to *FII, then E5ecutive 7ice )resident o Wac/enhut ro, *FG*
to present +*FF*-# (nd Peter -idenie)s, a contract officer at C#stoms in ashington '$C$ from
19K5 to 19KA, then again at C#stoms from 19K6 to 19B1, said he did not )now 4obert Chasen$ 2ow
co#ld that be* -idenie)s had wor)ed in the same department with Chasen, off and on, for at least
three years$
-idenie)s also testified that he met Chasen in the line of his d#ties sometime between 19KK and
19B6$ >et, Chasen no longer wor)ed at C#stoms between 19KK and 19B6*
Olmstead as)ed -idenie)s to reiterate his position with the P4O%I+3 software$ /I wor)ed on the
IP4O%I+3J contract$ $$$ The proc#rement was assigned to me by a lady named Patricia 4#dd$ $$$
%y f#nction was to cond#ct a competitive proc#rement, negotiate an award of contract, and then
administer the contract$/
Olmstead= /hat time frames are we tal)ing when yo# were $$$*/
-idenie)s= /e!re tal)ing abo#t from the day that I reported for d#ty at <#stice, which was in
+eptember 19B1, thro#gh abo#t 19BE$/
Olmstead= /(re yo# familiar with 2adron Company*/ 8This was a loaded "#estion beca#se 3arl
7rian, who -idenie)s testified he did not )now, owned 2adron Company at the time of the co#rt
proceedings$9
-idenie)s responded, />es, I am$/
Olmstead= /2ave yo# done wor) for 2adron Corporation in yo#r proc#rement contract*/
-idenie)s= /I s#pervise c#rrently a contract specialist who is administering a contract with 2adron$/
Olmstead= /Prior to s#pervising someone, did yo# personally handle that partic#lar contract*/
-idenie)s= /I have administered well over a h#ndred contracts, maybe a co#ple h#ndred or several
h#ndred over my career, and I don!t recall whether I have or not$/
Olmstead= /(nd yo# have never given a deposition in regards to the Inslaw matter*/
-idenie)s= /%y recall is not that good$ Li)e I said, I have administered h#ndreds of contracts, and I
may or may not have administered one with 2adron$/
(gain Olmstead as)ed -idenie)s if he )new 3arl 7rian*-idenie)s responded, /.o, sir$/
Olmstead= /'o yo# )now who owns 2adron*/
-idenie)s= /I really don!t$ I!ve heard I mean, I don!t want to spec#late now$ 2e may be an officer
with 2adron$ 2e may be$/
Olmstead= />o# don!t recall any "#estions in any depositions at all regarding that*/
-idenie)s= /I do recall "#estions along these same lines$ 7#t again, from general )nowledge, I thin)
he is an officer or has been an officer with 2adron$/
Olmstead= /In fact, in yo#r deposition, yo# admitted yo# )new that he was an officer of 2adron,
didn!t yo#*/
-idenie)s= /I wo#ld li)e to see my transcript from my deposition as to what I said $$$/
Olmstead went on to "#estion -idenie)s abo#t /%odification .o$ 15/ of the P4O%I+3 software$
-idenie)s stated that he )new what %odification .o$ 15 was, b#t repeatedly ref#sed to disc#ss it
#ntil someone prod#ced the original Inslaw contract$ ,inally, #nder press#re to give a general
recollection, he said it dealt with the twelfth modification to the P4O%I+3 software$
Olmstead as)ed, /ere yo# personally chastised as a res#lt of %odification .o$ 15 in the way yo#
handled that*/
-idenie)s= /Please define Nchastised$!/
Olmstead= "Were you told that you too/, converted, and stole si5 ,illion dollars !orth o
Insla! sot!are throu"h the !ay you handled (odiication No# *9C"
-idenie)s= /% 0ud"e in the 2an/ruptcy court ruled that# &ince then the record !as erased# (nd
that lang#age sho#ld not be the way a nonlawyer li)e me #nderstands, it is no lon"er in
e5istence ###"
GGGGGG
It is necessary to digress here to disclose the magnit#de of the apparent government cover#p
relative to 4iconosci#to!s case$ (bo#t two wee)s before 4iconosci#to!s trial began, I had received a
call from %ichael as)ing me to contact 'rian Lei"hton, a or,er assistant U#&# %ttorney in
4resno, !ho, (ichael clai,ed to have provided inor,ation to# %ichael was lining #p his
d#c)s$ Essentially his deense rested on his a2ility to prove he !or/ed or the U#&# "overn,ent
in intelli"ence operations, b#t his lawyer was behind sched#le in ma)ing the contacts$
'rian Lei"hton had 2een instru,ental in prosecutin" 9F ,e,2ers o a dru"Jar,s
or"ani1ation called "The Co,pany#" The Co,pany had 2een !ritten up in the &an 4rancisco
Chronicle on %pril 9G, *FG9 under the headin" "&tory o &pies, &tolen %r,s and Dru"s#"
%ccordin" to reporter 'ill Wallace, The Co,pany consisted o +Buote- "a2out :AA ,e,2ers,
,any o the, or,er ,ilitary ,en or e5police oicers !ith nearly K:A ,illion !orth o assets,
includin" planes, ships and real estate#"
The article !ent on to say that "ederal dru" a"ents said the or"ani1ation had i,ported
2illions o dollars !orth o narcotics ro, Latin %,erica, and !as also involved in
"unrunnin" and ,ercenary operations#" +peciali;ed military e"#ipment consisting of nine
infrared sniperscopes, a television camera for ta)ing pict#res in dar)ness, 1E66 ro#nds of small
arms tracer amm#nition for night combat, a fivefoot remotecontrol helicopter, and secret
components from the radar #nit of a +idewinder g#ided missile !ere stolen ro, the U#&# Naval
Weapons &tation at China La/e in the (o0ave Desert#
4ederal a"ents said so,e o the stolen eBuip,ent !as "oin" to 2e used to ,a/e electronic
eBuip,ent or dru" s,u""lers and so,e !as traded to dru" suppliers in Colu,2ia#
T!entynine ,e,2ers o the Co,pany !ere indicted 2y the 4resno ederal "rand 0ury in *FG*#
(mongst those indicated was (ndrew /'rew/ Thornton, A6, a former narcotics officer$
On +eptember 1?, 19BE, the Los (ngeles Times p#blished the story of Thornton!s death, entitled,
/,ormer .arcotics Officer Parach#tes O#t of Plane, 'ies with KK Po#nds of Cocaine$/ The article
said Thornton !as indicted in *FG* or "alle"edly lyin" a plane to &outh %,erica or a
reputed dru" rin" /no!n as @The Co,pany#3" In an interview with the Los (ngeles Times, 7rian
Leighton said, /I!m glad his parach#te didn!t open$ I hope he got a hell of a high o#t of that $$$/
Thornton!s mysterio#s death was disc#ssed at length in a boo) written by +ally 'enton entitled,
/The 7l#e @rass Conspiracy$/ )art o The Co,pany !as headBuartered in Le5in"ton,
=entuc/y# )rosecutors in Le5in"ton, 4resno, Caliornia +'rian Lei"hton-, and (ia,i, 4lorida
!ere !or/in" to"ether in a 0oint eort to 2rin" do!n The Co,pany#
The +an ,rancisco Chronicle noted that in 8anuary, *FG9, 6ene 'erry, a state prosecutor in
Charlotte $ar2or, 4lorida, !as shot in the ace as he ans!ered his door# )olice su2seBuently
arrested 'onnie =elly as 'erry3s ,urderer# 'onnie3s hus2and, (i/e (cClure =elly, !as a
suspected ,e,2er o The Co,pany who later pleaded g#ilty in the ,resno, California case$
In %ichael 4iconosci#to!s doc#ments, I discovered a letter dated %arch 5A, 19B5, written on
Caba;on letterhead to (ichael (cClure at $ercules Corporation from (rt elmas, President of
the Caba;on 7and of Indians$ Copies 8cc=9 were also noted to %arshall 4iconosci#to and %ichael
4iconosci#to$ The letter complimented %cCl#re!s competence in presenting a clear and l#cid
e&planation of a power pac) #nder development at 2erc#les$ 82erc#les was owned by %arshall
4iconosci#to, %ichael 4iconosci#to and Patric) %oriarty, the 4ed 'evil firewor)s mog#l$ %ore on
%oriarty later$9
Throu"hout (ichael3s docu,ents, I ound reerences to (ichael (cClure and 'onnie Lynne
6# =elly# (ichael3s code !ord or (i/e (cClure !as "6opher#"
<o#rnalist 'anny Casolaro had been comm#nicating reg#larly with %ichael 4iconosci#to and
obvio#sly learned abo#t The Company$ It is not to be overloo)ed that coincidentally or not, (ri
7en%enashe 8a former Israeli intelligence agent who lived in Le&ington, Cent#c)y9 told 7ill
2amilton that two Le&ington ,7I agents had been enro#te to meet with 'anny at the %artinsb#rg
2otel on the day of his death$ The Company was head"#artered in Le&ington$ 'anny was not
meeting with the ,7I relative to P4O%I+, he was preparing to t#rn over dr#g traffic)ing
information on The Company$
7en%enashe f#rther told 2amilton that one of the agents, 3$7$ Cartinho#r, was angry that the
<#stice 'epartment was not p#rs#ing 4eagan administration officials for their role in the October
+#rprise$
GGGGGG
%eanwhile, it was necessary to contact 7rian Leighton to corroborate 4iconosci#to!s story that he
had been instr#mental in helping Leighton identify members of The Company$
I did not directly contact Lei"hton, !ho had resi"ned ro, the U#&# %ttorney3s oice shortly
ater the prosecutions and entered into private law practice, b#t as)ed the +ecret +ervice agent in
Los (ngeles who had visited my home regarding the /H#een!s accident/ in %ariposa 8mentioned in
the first chapter of this boo)9 to r#n a chec) on 4iconosci#to$
Instead, he called 7rian Leighton and when I chec)ed bac) with him, he ac)nowledged tal)ing to
Leighton abo#t 4iconosci#to$ Lei"hton conir,ed to the &ecret &ervice a"ent that he recalled a
threehour acetoace ,eetin" !ith Riconosciuto and re,e,2ered hi, !ell# $e "ave speciic
details o Riconosciuto3s cooperation !ith the U#&# attorney3s oice# I than)ed the +ecret
+ervice agent and h#ng #p$
I ne&t contacted a retired police officer and colleag#e in the %ariposa investigation, and as)ed him
to p#t me in to#ch with someone tr#stworthy in government who co#ld corraborate Leighton!s
information$ The contact was made and this individ#al agreed to call 7rian Leighton to see if he
co#ld glean f#rther details of %ichael!s cooperation with the D$+$ attorney!s office$ ,or p#rposes of
anonymity, this so#rce will be identified as /4$<$/ hen I chec)ed bac), he conir,ed that
Lei"hton did indeed re,e,2er (ichael3s help !ith the case and, in act, said (ichael led la!
enorce,ent oicers to a ,ari0uana cache 2elon"in" to ,e,2ers o The Co,pany#
(t that point I was satisfied that %ichael had been operating within the framewor) of The Company
and had spo)en acc#rately abo#t his cooperation with 7rian Leighton$ I called Thomas Olmstead,
%ichael!s attorney, and related the above information$
T!o !ee/s later, on <an#ary 1E, 1995, at %ichael!s trial in Tacoma, ashington, 7rian Leighton
testified that the case in "#estion involved the theft of military e"#ipment from the China La)e
.aval eapons Center in California$ /The ,7I and .aval Intelligence +ervice began the
investigation,/ he said, /and there were several people that were targets of the investigation$ One of
those targets began cooperating with #s and then it became a '3( and ,7I investigation$ The thefts
occ#rred in 19K9 and 19B6, and the case contin#ed on for a co#ple of years$/
Lei"hton testiied that he "could not recall ever ,eetin" personally !ith (r# Riconosciuto and
he didn3t /no! i he spo/e to hi, personally or spo/e to hi, throu"h a "overn,ent a"ent#"
Dnder crosse&amination, Leighton testified that he tho#ght 4iconosci#to was bro#ght to him by an
agent 7arnes from the Oa)land or +an ,rancisco office of the ,7I, 2ut he couldn3t re,e,2er
e5actly ###"
(fter Leighton!s testimony, %ichael called me and as)ed, /hat happened*/ I was astonished at
Leighton!s testimony$ hat was at sta)e here* %ichael spec#lated that Leighton was operating o#t
of fear$ 2e said Leighton retired from the D$+$ (ttorney!s office shortly after prosec#ting members
of The Company, and recalled that the prosec#ting attorney in ,lorida had been shot in the head$
I called the +ecret +ervice officer and 4$<$ individ#ally and as)ed them to repeat what Leighton had
told them 2eore the trial# They both repeated verbatim what Leighton had told them the first time
abo#t %ichael 4iconosci#to$ I said it appeared Leighton had per0#red himself in co#rt$ .either
co#ld #nderstand why*
GGGGGG
In (#g#st 199A, I received from a friend of 7ill 2amilton!s 8President of Inslaw9 a 'eclaration,
signed by 2amilton, which stated that / $$$ On or abo#t (pril ?, 1991, I spo)e by telephone with %r$
7rian Leighton, an attorney in private practice in ,resno, California$ 2e stated that d#ring the early
19B6!s, while serving as an (ssistant Dnited +tates (ttorney in ,resno, California, he had
investigated a nationwide criminal enterprise )nown as @The Co,pany,3 !hich !as en"a"ed in
ille"al dru" traic/in" on a ,assive scale#
"(r# Lei"hton told ,e that +%- (ichael Riconosciuto had urnished (r# Lei"hton @valua2le
intelli"ence3 on ille"al dru" activities and The Co,panyD 879 %r$ Leighton had been #nable to
#se the information in prosec#tion b#t 8C9 the fail#re to #se %r$ 4iconosci#to!s intelligence
information was not beca#se of any fa#lt of %r$ %ichael 4iconosci#to$/
(lso mentioned in the affidavit was corroboration of 4iconosci#to!s wor) in the defense and
national sec#rity fields$ &ection si5 o the aidavit noted that durin" the course o a telephone
conversation !ith Ro2ert Nichols on or a2out %pril *G, *FF*, $a,ilton learned that Nichols
had attended a ,eetin" that had 2een or"ani1ed 2y a Colonel 'a,ord, an aide to 6eneral
(eyer, then Chair,an o the 8oint Chies o &ta# Others participatin" in the ,eetin" !ere
depart,ent heads ro, Depart,ent o Deense scientiic acilities#
(ichael Riconosciuto !as the principal presenter to this "roup o seniorlevel national security
research and develop,ent oicials# (ccording to .ichols, 4iconosci#to made a day long
presentation to this meeting of scientists lasting from appro&imately 9 a$m$ #ntil appro&imately A
p$m$, answering "#estions from the participants and filling the halls of the conference facility with
his handprinted notes on the scientific and technical iss#es that arose in the co#rse of his
presentation$
I was able to locate in 4iconosci#to!s files, a letter written on <#ly 56, 19B? from To, 'a,ord,
-ice President of 4esearch and 'evelopment at ,%C Corporation in +anta Clara, California to
illiam ,rash in 3scondido, California$ (t that time, ,rash, a retired D+%C Colonel, was
Chairman of the 7oard and Chief 3&ec#tive Officer of Lilac Corporation$
Essentially, the letter e5pressed enthusias, or the potential application o technolo"ies 2ein"
proposed to 4(C Corporation 2y (eridian %r,s, and called for a list of all active participants
in the 0oint vent#re$ (t that time 4iconosci#to was vice president of %eridian (rms$ 7amford
added, / $$$ >o# may want to do this only for %i)e at this stage$/
,rash hastened to respond to 7amford on <#ly 5K, 19B? to apprise him of a meeting between
himself and %ichael 4iconosci#to, 4obert 7ooth .ichols, Peter Fo)os)y and Patric) %oriarty
8%ichael!s father!s b#siness partner9 regarding /energy transfer phenomena$/ ( proposal was
#nderway to o#tline technology in the form of patents applied for 0ointly between %eridian (rms
and ,%C$ ,rash noted that the technology wo#ld /s#percede all e&isting world patents in the field$/
/2ad we patented previo#sly, it wo#ld only have anno#nced o#r Nedge! in the field,/ he wrote$ Three
of the fo#r ma0or patents that wo#ld be forthcoming were 819 the application of Pert#rbation Theory
to enhanced energy transfer, 859 the application of stationary methods with powders and aerosols to
enhanced energy transfer and 8?9 the application of Pert#rbation Theory to hydrodynamic flow
regimes$
It is noteworthy that the s#bmarine prop#lsion system depicted in the movie, /2#nt for 4ed
October/ #tili;ed this theory$ ,rash concl#ded, /Tom, as yo# well )now, %i)e!s tried and tr#e val#e
is in the field of high voltage and electrostatics and their application$ The meetings in +an <ose
highlighted application of this technology in over one h#ndred areas that are inho#se ,%C$/ 2e
added, / $$$ Per yo#r reference to meetings in ashington, '$C$, I ass#me the meetings with Dr#
4air, (dmiral 4en)in and the (CCO% people will s#ffice in this matter$ In closing we are very
enth#sed, Tom, and we loo) forward to an e&peditio#s closing$ +incerely, illiam ,rash$/
,rash!s payment for p#tting together the above referenced 0oint vent#re, if s#ccessf#l, wo#ld be
PE66,666 for the first fifteen million invested, or P166,666$66 for only five million invested, a
oneh#ndredtho#sanddollar per year salary for a period of 56 years, and a 5R share in the gross
profits$ This, according to a Letter of Dnderstanding sent to and signed by 4obert 7ooth .ichols
and %ichael 4iconosci#to in <#ly, 19B?$
In "#estioning %ichael 4iconosci#to abo#t the ,%C agreements, he said he attempted to brea)
away from 4obert .ichols in 19BA$ /The g#y nearly got me terminated,/ declared 4iconosci#to$ /(t
the time I was wor)ing with .ichols on a proposal to ,%C Corporation, which is ,ood %achinery
Corporation, they prod#ced the 7radley Personnel Carrier$ I!ve got a complete papertrail on the
technology that was being presented$ We conducted a test de,onstration o an enhanced airield
device !hich I developed# We also conducted a test o a hydrodyna,ic i,plosion type o
e5plosive device#
/The implosion device settled the .evada Test 4ange by abo#t ?6 feet$ The Lawrence Livermore
Labs and the @all#p Ordinance people b#ilt a prototype of the device, b#t they overb#ilt it beca#se
they wanted an impressive demonstration$ It created an international incident beca#se the
demonstration was pic)ed #p by +oviet monitoring satellites$
/(nyway, the bona fides were established$ The ne&t thing was to get the b#siness done and get me
into harness in a program$ I was all for it, b#t 7ob I.icholsJ started getting spoo)y on me$ 2e
wanted to receive the set#p of o#r end offshore, in +ingapore$ 2e wanted to receive P56 million
dollars in cash in +ingapore, and he !anted to use certain o the technolo"y overseas, na,ely in
%ustralia, O=C
/7ob started drin)ing a lot$ 2e was obvio#sly #nder a lot of press#re from somewhere, and his
fascade of respectability started to crac)$ (bo#t that time 7ob began press#ring me to do things a
certain way$ e!d already been approved at the e&ec#tive level by ,%C$ 7#t we still had to go
thro#gh the legal department and ,%C is a p#blicly held stoc) corporation$ +o we still had to go
thro#gh the shareholders for abo#t eight months, which p#t #s abo#t a year away from
cons#mmating the deal$
/+o, I as)ed 7ob for some e&tra money to meet my everyday e&penses, b#t 7ob said, N2#rry #p and
get the b#siness done and then yo#!ll have plenty of money$! I tried to e&plain to 7ob that there was
no way he co#ld e&pedite this thing, and so on and so forth$ ell, 7ob became really overbearing$
(nd that!s when he demanded that I state things in the contract proposal to ,%C which wo#ld have
been misstatements, to the point of being illegal$ That!s when I started having second tho#ghts abo#t
it$
/There were other people involved in the development of that technology$ 7ob wanted me to pay
him o#t of my share and ma)e no reference to the other people in the agreement$ 7#t when yo#!ve
got the Dniversity of California and the Dniversity of Chicago having 16 percent of yo#r company,
having 16 percent of 2erc#les 4esearch and Interprobe, yo# )now, how co#ld I misrepresent the
interests of my dad, %oriarty and I(dmiralJ (l 4en)in in a deal with a D$+$ p#blicly held
corporation I,%CJ*
"%t that ti,e, Riconosciuto had 2een 7ice )resident o (eridian %r,s, a su2sidiary o
(eridian International Lo"istics# 'ut he !as also technical advisor or 4#I#D#C#O# +4irst
Intercontinental Develop,ent Corporation- o !hich Nichols !as on the 'oard o Directors#
.oted 4iconosci#to, /I wal)ed into ,$I$'$C$O$ in e"#al good faith$ (nd that also t#rned so#r
beca#se 'o2 !anted ,e to ille"ally ta/e e,2ar"oed technolo"y out o the United &tates, to run
an operation !ith e,2ar"oed ar,a,ents and hi"h technolo"y outside o the United &tates#
/+o I wal)ed o#t on 7ob$ (nd 7ob p#t the heat on me and they wo#ldn!t leave me alone$ hen I
got remarried Ito 7obby 4iconosci#toJ, they contin#ed to harrass me by p#tting o#t false
intelligence reports on me to law enforcement $$$/
I as)ed %ichael why he didn!t fight bac)* %ichael responded, />o# don!t seem to #nderstand$ (ll
my involvements were #nder closely controlled sit#ations$ There!s only one time in my life when I
was planning on doing something offcolor, and it never went anywhere$ (ll the rest of the time,
everything was #nder complete controls$ I never too) any elective actions$ 3verything was, yo#
)now, on direct orders$ (nd I got to the point where I bal)ed with 7ob .ichols and that!s when he
went ballistic on me$/
4iconosci#to said he was in the process of cleaning #p his life in ashington state when a private
investigator from Inslaw contacted him$ /I didn!t want to get nailed for piracy of that software, so I
tal)ed to my attorney, who tal)ed to the Inslaw attorneys, and I gave them a declaration$ (nd abo#t
that time, Peter -iedenie)s, who was an associate of both 4obert 7ooth .ichols and 'r$ <ohn
.ichols, called me and told me I was my own worst enemy$ 2e said if I didn!t cool it, if I didn!t
stonewall any f#rther re"#ests for information from the 2o#se <#diciary Committee, I was going
away forever$ I told -iedenie)s that I was already in too deep, and he repeated that NI was my own
worst enemy$! +even days later I was arrested on dr#g charges$/
GGGGGG
Ted @#nderson was one of the few /cooperating/ witnesses at %ichael!s trial$ Throu"h his
aidavit and testi,ony, Ted hoped to supply the deense !ith needed corro2oration o
(ichael3s covert "overn,ent sanctioned activities# Dnfort#nately for %ichael, Ted co#ld not
disclose nu,erous activities !hich had included Ro2ert 'ooth Nichols# (t one time @#nderson,
.ichols and 4iconosci#to had been inseparable, li)e the three m#s)eteers$ 'ut, Nichols !as
currently under investi"ation 2y the Los %n"eles 4'I or alle"ed involve,ent in or"ani1ed
cri,e in the U#&# and a2road#
,ort#nately, however, @#nderson!s res#me added credibility to the provocative affidavit he entered
into co#rt on %ichael!s behalf$ $e had 2een &enior &pecial %"ent in Char"e +&%C- at Los
%n"eles 4'I headBuarters ro, *FII to *FIF when he retired from the ,7I and went to wor) as
chief investigator for ,$ Lee 7ailey, 3s"$ Prior to that, ro, *FHA to *FH<, 6underson !as &pecial
%"ent &upervisor at 4'I headBuarters in Washin"ton, D#C## Interestingly, amongst a prestigio#s
list of positions nationwide, he !as also &%C ro, *FI: to *FII in Dallas, Te5as +!here he
2eca,e riends !ith Clint (urchison, 8r#, accordin" to his livein partner, 8#(## 8#(# stated in
phone intervie!s that she and 6underson attended parties !ith (urchison in Dallas, and
6underson phoned hi, oten ro, their (anhattan 'each ho,e-#
In 19K9, @#nderson received the (l#mni 2ighest 3ffort (ward in the ,ield of Law 3nforcement
from +igma (lpha 3psilon +ocial ,raternity at the Dniversity of .ebras)a$ In 19K9, he also
received the 'isting#ished (l#mn#s (ward from the Dniversity of .ebras)a in recognition of
disting#ished and devoted service to his co#ntry$
@#nderson!s handwritten affidavit, s#bmitted to %ichael!s lawyer on +eptember 5K, 1991, read as
follows 8e&cerpted9= /I, Ted L$ @#nderson, ma)e the following free and vol#ntary statement$ .o
threats or promises were made to get me to ma)e this statement$ I was born 11:K:5B at Colorado
+prings, Colorado$
/In early 19B6, I met one 4alph Olberg thro#gh a friend of mine, 7ill +loane$ +loane is a former
official with 2D'$ +loane was appointed by President 4onald 4eagan to the 2D' position after the
president was elected in 19B6$
/Olberg is a prominent (merican b#sinessman who was spearheading proc#rement of D$+$ weapons
and technology for the (fghanistan rebels$
/In late +pring or early s#mmer of 19B6, 4alph Olberg, one Tim Osman, %ichael 4iconosci#to and
I met in a room at the 2ilton 2otel, -ent#ra 7lvd$, +herman Oa)s, California$ I accompanied
%ichael 4iconosci#to, and Osman and Olberg were together$ e were there to disc#ss Olberg!s role
with the worldwide s#pport networ) involving the (u0ahaden, %"hanistan Resistance
(ove,ent against the +oviets$
/In partic#lar we disc#ssed the ability of the (u0ahaden3s !illin"ness to ield test !eapons, ne!
and esoteric in the ield and to return a research report, co,plete !ith photos#
/e also disc#ssed the capt#re and:or defection of high ran)ing +oviet military personnel who had
sensitive compartmentali;ed information and the availability of their briefings$ e disc#ssed one
person who was a +oviet defector and was a comm#nications officer who had detailed information
of the highest levels of +oviet military C?I 8Command Control Intelligence and Comm#nications9$
/e also disc#ssed the +oviet directed weapons system referred to in the conversation as N7l#e
'eath$! %ichael and I were told by Olberg that witnesses stated the corpses did not decay even after
being e&posed and #nb#ried for si& months$
/We discussed the possi2ility o (ichael analy1in" one o these units captured in the ield 2y
the %"han re2els or the purpose o havin" (ichael help their technical e5perts develop
eective counter,easures$
/e disc#ssed a military 0oint venture in Tur/ey to prod#ce speciali;ed amm#nition$ e
disc#ssed a lobbying effort to legally obtain +tinger II missiles as well as the vario#s +tinger post
and +tinger alternates$ %ichael was to form#late a plan to saniti;e the electronics of any +tingers
that wo#ld be at ris) of +oviet capt#re so any information gained from a capt#red +tinger co#ld not
be effectively #sed against the D$+$ or .(TO forces$
/This report was to be presented to a Congressional position as s#pport for the lobbying effort to
convince Con"ress to le"ally sanction the ship,ent o these ,issiles to the %"han re2els#
/e disc#ssed %ichael!s proposed modification of Chinese 16K %% roc)ets and how to
reconfig#re the pac)age into a bac)pac) portable effective artillery co#nter battlery system$
/e disc#ssed %ichael!s connection with the Chinese weapons position, .orinco, to provide the
basic components for the #nassembled roc)et system$ e disc#ssed the modification and assembly
of these 16K %% roc)ets and their la#nchers at a facility in )a/istan )nown as the Pa)istan
Ordinance or)s$
/It was my #nderstanding from the disc#ssion that we were wor)ing on a legally sanctioned arms
assistance pro0ect to the (fghan rebels and that 4alph Olberg was wor)ing thro#gh the (fghan des)
at the +tate 'epartment as well as thro#gh +enator 2#mphreys office$ /This was s#bse"#ently
confirmed by 0o#rnalist 'anny Casolaro who was recently Ns#icided$!
/Olberg indicated a potential t#rf battle problem with certain factions of the CI( and his gro#p
%+2 8%anagement +cience ,or 2ealth9$ In negotiations and:or lobbying efforts with Congress, the
CI( %+2 people were arg#ing that 4alph and Tim Osman!s gro#p did not tr#ly represent the
leadership of the (fghan rebel resistance$
/Tim and 4alph proposed calling their people and having an #nprecedented leadership meeting in
ashington '$C$ to prove that their gro#p did in fact represent the f#ll leadership of the %#0ahaden$
/hen I recently called 4alph, he denied that the above meeting had ta)en place and then after
prodding, he finally admitted to it and he as)ed me not to tal) abo#t it$ This five page statement is
tr#e and correct to the best of my )nowledge$ Ted L$ @#nderson$/
GGGGGG
Later in my investigation, I obtained from %ichael 4iconosci#to!s files in the desert, a handwritten
note from /T$@$/ to /%ichael/ which read as follows= /4aymond is arriving at L(Q K=EE p$m$ (ir
Canada via ,light K9? from Toronto$ ill have to go thro#gh C#stoms$ This !ill "ive us another
,e,2er or our dru"Jar,s operation#" The note gave a telephone n#mber where /T$@$/ co#ld be
reached$ /4aymond,/ referred to in the note, is pres#mably 4aymond Lavas, @#nderson!s former
forensic!s e&pert d#ring his ten#re in the ,7I$
GGGGGG
%ichael!s trial was not going well$ 2e called and as)ed me to contact 4$<$ and bring him to my
ho#se$ %ichael was ready to tal) he !anted ,e to set up a phone conversation in !hich he
could preli,inarily open ne"otiations or entry into the 4ederal Witness )rotection )ro"ra,#
I was o#t of my depth here$ I had no idea whether 4$<$ wo#ld cooperate with s#ch a re"#est$
.evertheless, I called him and related %ichael!s proposal$ 2e said he had no a#thority to approve
s#ch a re"#est, b#t he wo#ld ta)e the information and pass it along$
2e arrived at my home early the following wee) and %ichael called as sched#led$ 3&cerpts from
that first taperecorded conversation went as follows= 8%ichael did most of the tal)ing9 / $$$ In the
,resno area, there was a gro#p of people )nown as the 4resno Co,pany, and the 7ernard brothers
were involved in it and <amie Clar) was involved and all of these people seemed to have charmed
lives $$$
"The Co,pany !as ori"inally out o Le5in"ton, =entuc/y and (ena, %r/ansas# 7rian
Leighton was the assistant D$+$ (ttorney who was the most effective person in form#lating a
strategy in the <#stice 'epartment to go after these people$
/e recogni;ed what they were, for what they were, at that time, and there were a few (T, g#ys
down in Los (ngeles that recogni;ed them for what they were, OC* $ere !as a "roup o over :AA
people, ,ost o the, e5la! enorce,ent and e5,ilitary, e5intelli"ence people involved in a
,a0or dru" and s,u""lin" operation# %nd they !ere involved in co,pro,isin" activities# The
2otto, line !as espiona"e#
/(nd all Leighton served to do was vaccinate the gro#p against f#rther penetration$ <#st hardened
them$ (nd all the ma0or so#rces that were developed from inside t#rned #p dead$ ( federal 0#dge in
Te&as t#rned #p dead$
/ $$$ This is a nasty b#nch of people$ (nd they!re still alive and well$ .ow where that dovetails into
my c#rrent sit#ation, is in *FG; I !as involved !ith Ro2ert 'ooth Nichols !ho o!ns (eridian
%r,s Corporation and is a principle in 4#I#D#C#O#, 4irst Intercontinental Develop,ent
Corporation# The C3O of ,I'CO is @eorge Pender and 7ob %ahe# was -ice President $$$
"4IDCO !as an N&C >National &ecurity Council? corporate cutout# ,I'CO was created to be
the corporate vehicle to sec#re the financing for the reconstr#ction of the cities of 7eir#t and
'amo#r in Lebanon$ (nd they were wor)ing o#t of an office in Nicosia, Cyprus#
/ $$$ (nd here I got involved with a gro#p of people that were all high profile and sho#ld have been
above reproach$ ,I'CO had a companion company called 3#ramae Trading which operated
thro#go#t the %iddle 3ast$ I came in contact with the P4O%I+3 software 8#nintelligible9$ 3#ramae
had a distrib#tion contract with several (rab co#ntries and I was as)ed to eval#ate the hardware
platforms they had chosen$ That was I7%:(+A66 st#ff $$$
/ $$$ That had come from I7% Tel (viv b#t it came thro#gh a c#to#t, Lin) +ystems, beca#se they
co#ldn!t deal directly with the (rabs$
/(nd I came across a g#y named %ichael T$ 2#rley and I tho#ght he wor)ed for the +tate
'epartment b#t it t#rned o#t he was inco#ntry attache for the '3( in .icosia, Cypr#s$ I.icosia is
the capital of the island of Cypr#s, off the coast of LebanonJ$ .ow, the '3( had no real presence in
Lebanon$ .either did anybody else, incl#ding the Israelis$ They had their #s#al networ) of contacts
b#t it was very ineffective$ The only !ay to penetrate that situation, !as to "et into the dru"
trade$
"Eura,ae "ot into the dru" trade and I !as told that it !as a ully sanctioned N&C directed
operation, !hich it turns out that it !as $$$ %ll those operations !ere 2onaide and all the
people !ho !ere in the, !ere deinitely /ey "overn,ent people, altho#gh they were not who
they said they were$
/They all wor)ed for different agencies other than was stated$ Probably part of the normal
disinformation that goes with that$ (nd I was technical advisor for ,I'CO and we had a#spices
thro#gh the government of Lebanon to get in and o#t of Lebanon$
"'ut as ar as "oin" to the eastern part o Le2anon, unless you !ere connected !ith the dru"
trade, your chances !ere sli, co,in" out unscathed ### They 2uilt a net!or/ throu"hout the
'e/aa 7alley, and >Ro2ert 'ooth? Nichols $$$ he is #nder 2arold O)imoto from the 2awaiian
Islands$
"$arold O/i,oto !as represented to ,e as 2ein" an intelli"ence person, !hich he is# $e has
!or/ed under the auspices o >4ran/? Carlucci or years# >Carlucci !as or,er CI% deputy
director and or,er Deense secretary?# (pparently 2arold performed services for the D$+$
government d#ring orld ar II$ 2e!s of <apanese ancestry$ I g#ess he was rewarded for services
well done$
/ $$$ 2arold operates thro#gh a company called Island Tobacco Corporation$ 2e has contracts for all
the condiments at all the casinos in (tlantic City, in 4eno, in -egas, in %acao, China $$$ he!s got
contacts in 2onol#l#, the Orient $$$ a co#ple of <ews he )nows in 7an)o) $$$ and there is a casino, no
a city abo#t 1E miles north of 7er#it that 2arold has his fingers in$
/hen ,I'CO was wheeling and dealing on financing for the reconstr#ction of the infrastr#ct#re of
7eir#t, they were ma)ing sweetheart deals with +yrian mobsters and the brother of the president of
+yria, 2afe; (ssad$
/ $$$ The intelligence people in their infinite wisdom decided to capitali;e on the longstanding battle
between 4ifat (ssad and his gro#p and the <afaar family$ +electively they were bac)ing both
people, b#t they were also playing them off against one another, developing networ)s$ They got a
b#nch of prominent +yrians thoro#ghly compromised and they were in tow in the intelligence
game$ (nd they had people that co#ld get me in and o#t of the 7e)aa -alley, even o#t of certain
areas of +yria$
/,rom an intelligence standpoint, it was a s#ccess$ 'ut to ,aintain the credi2ility o those
intelli"ence operations the heroin had to lo!# To ma)e it real$ %nd the stu !as startin" to
accu,ulate in a !arehouse outside o Larnaca# /I personally was in a wareho#se where 2#rley
and @eorge Pender and @eorge %arcobie 8phonetic spelling9 told me there was up!ards o
t!entyt!o tons# (nd even tho#gh it was pac)aged for shipment, the smell of it in that closed
wareho#se was overpowering$ .ou /no!, !hite heroin li/e that has a certain odor beca#se of the
way it!s processed$
/They had authori1ation or !hat they called @controlled deliveries3 into the United &tates#
%nd they !ould tar"et certain cities and then ollo! the stu out, ostensi2ly un,as/in" the
net!or/ and conductin" prosecutions#
"$o!ever, the operation 2eca,e perverted at the U#&# end o the pipeline# Controlled heroin
ship,ents !ere dou2led, so,eti,es tripled, and only one third o the heroin !as returned to
the DE%#
"%t a certain transer point at the airport in Larnaca, the e5cess 2a""a"e ro, the ori"inal
controlled delivery !ould 2e allo!ed to "o throu"h# I !as "iven the na,es o the narcotics
people !ho !ere handlin" that# 7#t there were a co#ple of agents who were on the #p and #p, and
they had s#spicions$
/(n intelligence agent who wor)ed with 'I( is now deceased$ 2is name was Tony (smar and he
got on to the operation early on, and started going toe to toe with 2#rley I'3(J$ 2e died in a bomb
blast and it was ascribed to terrorists$ (nd it act#ally was terrorists who did it, b#t his cover was
deliberately blown$ %yself and others s#spected 2#rley and 7ob .ichols and @len +hoc)ley were
responsible for that $$$ /
GGGGGG
(fter researching %ichael 4iconosci#to!s information, 4$<$ noted to me that %ichael gave mostly
valid information, b#t he co#ld not prove that %ichael had been involved$ $e did, ho!ever, veriy
+throu"h Custo,s- that (ichael $%D 2een in Le2anon, b#t he co#ld not verify the details of the
dr#g operation$
%ichael responded 8on a taped message to 4$<$9 by vis#ally reco#nting the '3( apartment:condo in
.icosia, Cypr#s= /The '3( had a condo, I thin) it was on Col#mbra 8phonetically spelled9 +treet,
in .icosia, Cypr#s Ioff the coast of LebanonJ$
/They had a ham radio station there$ It was an ICO% single side band amate#r radio set#p, with a
linear $$$/
/ere yo# act#ally there*/ I as)ed$ %ichael "#ipped, />es, I was there,/ then contin#ed$ /I can
describe the antenna system, on the top floor and the way it!s wired #p and everything$ Dnless yo#
were there, yo# wo#ldn!t )now it was ICO% e"#ipment$
/.ow, the game plan with 3#ramae and 2#rley!s operation $$$/ Pa#se$ / $$$ >o# need to #nderstand
that the airport in Lebanon was closed down$ I too) the ferry from Larnaca to <o#nieb$ .ow <o#nieb
was slightly so#th of where the casino city was and the casino city was intact$ 7eir#t was a
nightmare, and so was 'amo#r, beca#se the PLO destroyed the infrastr#ct#re by b#rrowing
b#n)ers, and there was no water, electricity or phones$ It was a combat ;one$
/The +yrian mob controlled the Casino d# Liban in a little city north of 7eir#t$ It !as used as a
ront 2y narcotics people# Island Tobacco, owned by 2arold O)imoto, sells all the cigarettes there$
.ow, I co#ld give yo# the names of the families$ They pitted them off against one another$
,$I$'$C$O$ was to finance the reconstr#ction of the infrastr#ct#re of the cities of 7eir#t and 'amo#r$
'eals were c#t as to who got what concessions$ There were certain families, li)e the 3l<orr family
that had to be placated$ (nd there was 4ifat (ssad and his gro#p$ /Tony (smar fig#red o#t what
was going on with 2#rley, that they !ere shippin" @noncontrolled3 loads o heroin 2ac/ to the
U#&## They /illed Tony ###"
/hat were the names of the people yo# were wor)ing for over there*,/ I as)ed$ %ichael!s time was
always limited on the phone$
"O/, there !as a ,an na,ed (aurice 6ane,# $e had a relative, either a 2rother or a cousin,
!ho is a senior DE% oicial !ith (ichael $urley# I can!t remember his name right now$
%ny!ays, (aurice !as a"ency, you /no!, in country, in Le2anon# (nd %a#rice and I and
@eorge Pender wor)ed together$/
/hich agency* CI( or '3(*,/ I as)ed$
/CI($/ %ichael contin#ed$ / $$$ (nd then there was 'anny 2abib$ 'anny 2abib and 7ob .ichols
wor)ed o#t of Cario 8phonetic spelling9 and Italy$/
/(nd 7ob was .+( or $$$/ /.o, 7ob was .+C at that time$/
/@eorge Pender and 7ob Clar) were the high level contacts on all of this$ 7ob Clar) got dr#mmed
o#t beca#se he was clean$ (nd %c,arland then too) over, OC*/
/Dh h#h$/
/+o, it was @eorge Pender and %c,arland and (ichael (c(anus>%ssistant to )resident Rea"an
at the White $ouse?#"
I as)ed, /hat was yo#r involvement with that partic#lar operation*/
/I handled comm#nications protocol$ (ll the comm#nications and financial transactions$ I I could
"et ,y records on line I could sho! all the ,oney lo!s, everythin"#"
GGGGGG
%ichael called bac) later that day and we contin#ed o#r conversation$ 2e was intent on tal)ing to
someone in ,inCen 8,inancial Crimes 3nforcement .etwor)9$ / $$$ The )eystone cops are wor)ing
on my defense$ >o# )now it!s really an ordeal$ 2ave yo# tal)ed to 4$<$ again*/
/.o %i)e, he!s not giving m#ch information$/
/Listen, tell him that not only am I willing to polygraph, b#t I need some e&pert help and I thin) he
needs some e&pert help$ In the leag#e we!re playing in, the only g#ys we can get that have the
wherewithall are with ,inCen$ That stands for ,inancial Crimes 3nforcement .etwor)$ @et me a
technical g#y that spea)s my lang#age$/
/(lright, %i)e $$$/
/I!m tal)ing abo#t +wift Chips$ That stands for Clearing 2o#se Interban) Payment +ystem, O)*/
/4ight$/
/Im mad, OC*/
/Dh h#h$/
/I!m real mad$ The government has all my files and records$ They!ve got all of my optical storage
dis)s$ 3ach of those optical storages, 1?6 of them, contains 56,666 pl#s pages$ They 0ac)ed me
aro#nd so bad $$$/
/%i)e $$$/
/ $$$ @et an e&pert that spea)s my lang#age, and I!ll tell him everything I )now and he can do so
m#ch damage, they won!t need my testimony or anything else$/
/%i)e, everything yo# )now abo#t what*/
/Tell 4$<$ it goes all the way bac) to the Cayman Islands and the 7ahamas and Castle 7an)$ .orm
Caspar $$$ 4esorts International 7an) $$$/
/2ow!d yo# get this st#ff*/
/I handled the money for them, OC*/
/,or who*/
/ $$$ ,or the ac)enh#t people$ ,or .orm Caspar who was a ac)enh#t employee d#ring all of this$
.ow, there was the or)ers 7an) in Col#mbia$ I can!t prono#nce the +panish name for it, I 0#st
)now it as or)ers 7an)$ I set #p their virt#al dead1drops $$$/
/hat!s that*/
/It!s a way to get aro#nd ($C$2$ reconciliations on a daily basis$ It!ll ta)e an e&pert, yo# )now, I
can!t even tal) to a normal h#man being abo#t this $$$/
/O$C$/
" ### %nd the 2otto, line here is 'o2 Nichols and 6il2ert Rodri"ue1, (ichael %22ell, !hose
no! an attorney in D#C#, 2ut he !as !ith the cri,inal section o the 8ustice Depart,ent and
$arold O/i,oto, and 8ose Londodo, and 6lenn &hoc/ley are all in 2ed to"ether# 8Three years
after this conversation, %ichael (bbell was indicted for la#ndering money for the Cali Cartel9$
/.ow Ted @#nderson $$$/
/%i)e, have yo# got any paperwor) on that*/
/.ow, wait a min#te$ @#nderson was physically with me when ayne 4eeder, Peter Fo)os)y and
his wife and several of ayne 4eeder!s lie#tenants, 7ob .ichols and his wife, 2arold O)imoto,
@eorge Pender, 'eborah Pender, 'ill Pender, and myself were all together $$$/
/ $$$ here*/
/ $$$ (t ayne 4eeders co#ntry cl#b, golf cl#b, in Indio, California$ (nd 7ob disc#ssed openly in
front of Ted @#nderson and myself and everyone present bragged abo#t @lenn +hoc)ley and <ose
Londono having ?,E66 soldiers$ It!s now almost do#ble that $$$/
/hat does that mean* hat are the soldiers*/
%i)e= /4$<$ will )now what it means$/
/(lright$ OC$/
/This too) place in 19B?$ I have correspondence on the things we were doing$ 7#t I was in fear of
my life beca#se 7ob was starting to act irrational$ The g#y was getting dr#n) all the time, waving a
g#n o#t of the car window, shooting in the air, yo# )now, 0#st really doing a mind trip on me$ I!ve
been on the r#n ever since $$$/
/Listen, %i)e, what do yo# need from ,inCen*/
/If I had help from the ,inCen people, I co#ld reconstr#ct my files$ Tell them that I need two types
of comp#ters$ I need a -(Q 11K?6 set #p with two 4LO II dis)sL one 4(B6 and a TDB6 tape drive$
That!s one pac)age$ (nd then I need a -(Q ?966 comp#ter$ .ow the reason why I need the older,
slower -(Q and I )now where to get all this st#ff, no problem, I!ve got the -(Q!s in +o#thern
California, b#t I need a place to set them #p and somebody to operate them, and 0#st follow my
instr#ctions$/
/(lright$/
/.ow, the -(Q +eries ?966 machine $$$ it!s too complicated to go into what mass storage devices,
b#t those are the two levels of machines I need$
/O), I!m thin)ing abo#t going to visit yo#r wife in +o#thern California, do yo# want #s to bring
those comp#ters #p here*/
/.o, .oO .o, leave them where they!re at$ Tell 4$<$ to find someone at ,inCen$ If we move them
aro#nd, we!re going to wrec) them$ I!m not trying to tal) down to 4$<$, b#t this is too far above
him$/
/%i)e, Ray,ond Lavas t#rned some of yo#r dis)s over to the <ac) 7roo)s investigative committee
82o#se <#diciary Committee on Inslaw9$/
/>eah, I )now$ There!s no data on those dis)s$ hat that is, is that is a s#bset of -(Q 7$%$+$, OC*
hat I do is I modify some of the -(Q 7%+ ro#tines to activate a one time pad encryption
scheme$ That!s why I have to have two 4LO5 drives on the -(Q 11K?6, beca#se one 4LO5 Platter
is a system planner, the other one is the one time pad$ The data is on a 165E 7PI 9 trac) tape on the
TDB6 tape drive$ That!s the system config#ration$/
/If yo# say so$/
/.ow, 4$<$ needs to p#t me in to#ch with somebody he tr#sts at ,inCen$ There!s abo#t 156 e&perts
there$ There are a few g#ys there that spea) my lang#age$
/hat!s the encryption )ey*/
/ell, they!re ten digit n#mbers $$$ it!s a one time pad, b#t it has a pse#dorandom, prime n#mber
e&pansion system $$$/
/%i)e, do yo# have access to P4O%I+3 thro#gh this system*/
/hat* Oh, I!ve got access to P4O%I+3, I!ve got access to ,OI%+ $$$/
/ell, P4O%I+3 is the one that!s going to get yo# off the hoo) in co#rt$/
/O), I #nderstand that$ 7#t P4O%I+3 and ,OI%+ are one and the same$ .ow they will say no,
that!s not tr#e, b#t in -irginia where the ,7I has their center, and where the <#stice 'epartment has
a center in '$C$, they!re both (mdahl mainframes, OC*/
/>es$/
/ $$$ >o# see, I want that 4LO II Platter o#t of the hands of the 7roo)s Committee and into the
hands of somebody who!ll do with it what I tell them to do$ I don!t want somebody to r#n it #p
witho#t first getting my instr#ction$/
/'oes it have to be that partic#lar one*/
/>es, either that or it will ta)e me si& months to rewrite the s#bset$ They want me to give them the
codes to #nravel everything$ If I did, they wo#ldn!t )now what to do with it anyway$ They!d ma)e a
mess o#t of things$/
/%i)e, what are yo# going to provide to ,inCen*/
"I3, "oin" to sho! the, ho! these 2oys handled the lie 2lood o the cash lo! on a day to
day 2asis# I3, "oin" to un,as/ the !hole operation ###"
/(nything specific on 4obert 7ooth .ichols*/
%i)e= "Nichols is $arold O/i,oto3s "odson# $e3s also Renee $anner3s +phonetic sp#- 2oy, and
Wol"an" 4oso"3s +phonetic sp#- 2oy#"
/ $$$ (nd who are they*/
/The ,inCen people will )now$ There!s also Octon Potnar /
/(lright$ ell, if I!m going to play aro#nd with this, I don!t want to be in the dar) $$$ I co#ld end #p
li)e 'anny$ I!ve got to )now what I!m dealing with $/
/If yo# get the right g#y at ,inCen, he!ll 0#mp at this, OC* e!ve got to start right now$ e!re
tal)ing abo#t some time getting things #p and rolling to where we!re fl#id and fle&ible and
f#nctional in their system internationally$ They!ll be able to watch the daily transactions $$$/
GGGGGG
%ichael contin#ed to re"#est of 4$<$ that he be connected with someone /tr#stworthy/ at ,inCen, to
no avail$ 2e also re"#ested to be placed into a itness Protection Program, again offering to
assemble his comp#ter e"#ipment in a secret location and provide ,inCen with a day by day view
of %ob 8and %C( Corporation9 illegal ban)ing transactions$
%ccordin" to (ichael, 2eore his arrest, he had 2een handlin" "old transers, ,oney
launderin", "virtual dead drops," altered %C$ daily reconciliations and other transactions
or various under!orld i"ures includin" Ro2ert 'ooth Nichols, $arold O/i,oto, 6eor"e
)ender, Wayne Reeder, (ichael %# (c(anus, Nor, Caspar, 6il2ert Rodri"ue1, 8ose
Londono, 6len &hoc/ley, and others$
%ichael contin#ed to call and give me taperecorded 8at his re"#est9 messages to pass on to 4$<$ The
man accepted the messages, b#t they 0#st went down the big, blac) hole and never emerged again$
One message in partic#lar later became significant to me$ The message from %ichael to 4$<$ went
as follows= 8H#ote9 "There are three do1en C*:A3s do!n at the 4ire2ird La/e %irstrip on the
6ila Indian Reservation in %ri1ona# Chec/ out 8 L 6 %viation, it3s an 4'O# The 4resno
Co,pany is alive and !ell do!n there#
"The real activity is not at (irana, it3s at 4ire2ird La/e %irstrip# Other airlines operatin" at
4ire2ird are 'ei"ert, (acavia International, )aciic %ir E5press, Ever"reen and &outhern %ir#
"Muestion to R#8#: $o! ,uch cocaine or heroin can 2e transported in a C*:AC Do you !ant
the C*:A, or do you !ant the "uys !ho orchestrate itC
"Do a ,atri5 lin/ analysis, then sit do!n and pic/ the tar"ets# Other!ise, you !ill tip o the
others and the proo !ill dry up#
" ### 'rian Lei"hton ,ade 9F arrests out o ive hundred !ithin the 4resno Co,pany# %ll
Lei"hton succeeded in doin" !as to @vaccinate3 the 4resno Co,pany a"ainst urther
penetration#"
4iconosci#to said he had a fragile window into this organi;ation 8The Company9, b#t Leighton and
others were ca#sing the window to close by being too p#blic abo#t their investigation$
The ,essa"e continued re"ardin" Ro2ert 'ooth Nichols: "'o2 Nichols runs 6len &hoc/ley#
6len &hoc/ley runs 8ose Londono# I >(ichael? sat !ith 'o2 Nichols and (i/e %22ell# 'o2
handed hi, K<A,AAA cash to handle an internal aairs investi"ation that the 8ustice
Depart,ent conducted !hich !ould have led to the e5tradition o 6il2ert and (i"uel
Rodri"ue1 and 8ose Londono#
/7ob .ichols told me I%ichaelJ that it was necessary to Ncrowbar! the investigation beca#se they
were Nintelligence people$!
"(ichael !anted to hand The Co,pany and 'o2 Nichols over to 4inCen in e5chan"e or
entry into the Witness )rotection )ro"ra,, b#t nothing was forthcoming from 4$<$
It was two years before I learned who %i)e (bbell, @ilbert 4odrig#e; and <ose Londono were$
%22ell had !or/ed in the cri,inal division o the 8ustice Depart,ent, according to 7ill
2amilton$ 2amilton added that, to his )nowledge, (bbell had left the 'O< in 19B5 and went
directly into the 7ogota, Col#mbia law offices of Caplan and 4#ssin$
( member of o#r loosely coalesced investigative team, @eorge illiamson, a former +an ,rancisco
Chronicle reporter, obtained (bbell!s bac)gro#nd from library directories= ,rom 19K? to 19K9
(bbell was staff assistant to the (ssistant D$+$ (ttorney @eneral$ 4ro, *FIF to *FG* he !as the
Director o the Oice o International %airs o the Cri,inal Division o the Depart,ent o
8ustice#
(fter leaving the 'epartment of <#stice in 19B5, (bbell became co#nsel at the law firm of Caplan,
4#ssin and 7ecchi, !ith oices in &an 4rancisco, Caliornia 'o"ota, Colu,2ia &anto Do,in"o
in the Do,inican Repu2lic 'an"/o/, Thailand Tapai, Tai!an Ne! .or/ (adrid, &pain and
(ia,i, 4lorida#
(s of this writing, (bbell was listed as wor)ing in his own firm with a partner named 7r#no 4ista#
84ista# and (bbell9 in ashington '$C$ 4ista# was also formerly with the law firm of Caplan,
4#ssin and 7ecchi$ (nd from 19EB to 196? he was an attorney in the Internal +ec#rity 'ivision and
Civil 'ivision of the 'epartment of <#stice$ 2e was also with the 'O< from 196? to 19B1 where he
was 'irector of the Office of ,oreign Litigation$ 4ista# spea)s @erman, Polish, +panish and
,rench$ 2e was Chairman of the 'ivision of International Law of the ashington '$C$ 7ar from
19K1 to 19K?$ In the (merican 7ar (ssociation from 19B1 to 19BA, he was Chairman of the
Committee of Private International Law Practice$ 2e is also a member of the (merican +ociety of
International Law$ 4ista# is obvio#sly a heavyweight in the field of international law$
( TI%3 maga;ine article, dated <#ly A, 199A, described 6il2ert Rodri"ue1 as a "leader o the
Cali >Colu,2ian dru"? cartel, !hich controls GAN o the !orld3s cocaine trade#" The newly
elected president of Col#mbia, 3rnesto +amper Pi;ano, was acc#sed of ta)ing P?$K million in
campaign f#nds from 4odrig#e;, which in effect, p#t +amper in leag#e with Col#mbia!s dr#g lords$
Three a#dio tapes of conversations between 4odrig#e; and +amper!s campaign manager, +antiago
%edina, had been handed over to D$+$ +tate 'epartment officials before the election, b#t nothing
was done$ DE% oicials !ere urious, statin" to TI(E that "No one did anythin"# They >the
&tate Depart,ent? allo!ed this travesty to ta/e place# Every2ody, includin" the U#&#
"overn,ent, is participatin" in this coverup#"
The +tate 'epartment responded, /e can!t interfere with elections$/
I p#lled o#t a boo) from a d#sty corner of my library entitled, /Cocaine Politics/ by Peter 'ale
+cott and <onathan %arshall, and loo)ed #p the name @ilbert 4odrig#e;$ On page B?, 6il2erto
Rodri"ue1 Ore0uela and 8ose &antacru1 Londono !ere ,entioned as part o the early
leadership o the Cali cartel# On page BB it was noted that the /Calibased Ocampo and @ilberto
4odrig#e; had been the principal targets of a ma0or '3( Centac investigtion that res#lted in
indictments of 4odrig#e; in Los (ngeles and .ew >or) in 19KB$/
(t that time, President <immy Carter!s 2#man 4ights foreign policy in Latin (merica distanced the
CI( #nder &tansield Turner +later a Wac/enhut 'oard Director- from any deaths"#ad
interdiction$ The Carter administration was also reportedly rel#ctant to go after Ocampo beca#se of
its determination in 19KK to sign a Panama Canal treaty with @eneral Torri0os, even tho#gh Torri0os
and family members were heavily involved at the highest levels of the world cocaine trade$
The Cali cartel, descri2ed in a *FG: Custo,s report, laundered its proits throu"h (ia,i
2an/s, one o !hich !as Northside 'an/ o (ia,i, o!ned 2y 6il2erto Rodri"ue1# 4odrig#e;
popped #p again as the leader of a delegation to the /cocaine s#mmit conference/ in Panama City in
the early 19B6!s$ .et, Rodri"ue13s na,e !as su2seBuently re,oved ro, DE% reports under
the Ronald Rea"an ad,inistration# In act, accordin" to dis"runtled DE% a"ents, so,e o
!ho, suspected they !ere stu,2lin" into a CI% connection, the case !as never pursued past
the indict,ent level and the Centac 9* tas/ orce !as totally dis,antled !hen Rea"an and
'ush ca,e to oice$
+o, @ilbert 4odrig#e; and <ose Londono were revealed to be high ran)ing members of the Cali
dr#g Cartel in Col#mbia$ I wondered if they were also CI( intelligence operatives* Or CI( dr#g
operatives* Or both, as %an#el .oriega had been* .oriega had #ltimately been o#sted when he
chose to bac) the violent %edellin cartel, @eorge 7#sh!s target$ If in fact @ilberto 4odrig#e; had
been compromised and forced to cooperate with D$+$ officials after his 19KB indictment, and ta)ing
into acco#nt his strategic position of leadership in the Cali cartel and his alleged f#nding of the
newly elected president of Col#mbia in 199A, it wo#ld indeed place the D$+$ government in a
powerf#l controlling position within the cartels today$ In fact, it wo#ld place CI( dr#g operatives
behind the election of the president of Col#mbiaO The implications were earthsha)ing$
GGGGGG
It is i,portant to point out here that, on %u"ust <, *FF*, (ichael Riconosciuto had called 'ill
$a,ilton at Insla! and as/ed hi, to o2tain inor,ation on or,er DO8 oicial (i/e %22ell#
Riconosciuto planned to trade inor,ation on %22ell, Rodri"ue1, Nichols and others to the
4'I in e5chan"e or entry into a Witness )rotection )ro"ra,#
7#t 2amilton, pressed for time and not comprehending the significance of the /dr#g/ connection,
had turned the investi"ation over to Danny Casolaro# 4iconosci#to had stressed to 2amilton that
%22ell3s activities ,i"ht 2e ris/y to trac/ and he sho#ld not ta)e the information lightly$
That same day, (#g#st E, Casolaro called 'o2 'ic/el, the Te&as oil engineer who once wor)ed as
an informant for the C#stoms 7#rea#, to discuss (i/e %22ell# 'ic/el later conir,ed that
Casolaro had in act discussed %22ell, Nichols and Rodri"ue1 at len"th durin" that last phone
conversation$ %nd he added, "Danny conronted Ro2ert 'ooth Nichols a2out his relationship
!ith (i/e %22ell#"
2amilton and Casolaro secretly devised a plan whereby 'anny wo#ld cond#ct an in"#iry with the
'epartment of <#stice, b#t wo#ld co#ch a n#mber of other in"#iries in with the %i)e (bbell in"#iry
to avoid alerting a#thorities to the real /foc#s/ of their search$
(n October 1E, 1991 -illage -oice investigative piece, entitled /The Last 'ays of 'anny
Casolaro,/ by <ames 4idgeway and 'o#g -a#ghan, shed f#rther light on Casolaro!s investigation
d#ring those last five days= 8.ote that most of 'anny!s last calls foc#sed on /dr#g connections$/9 On
%onday, (#g#st Eth, /4iconosci#to called 7ill 2amilton from his 0ail in Tacoma$ $e !anted so,e
inor,ation a2out a or,er 8ustice Depart,ent attorney >(i/e %22ell?, and !arned
$a,ilton that "ettin" the inor,ation ,i"ht 2e dan"erous# $a,ilton called Casolaro to help
hi, ind out a2out the attorney#
"That sa,e day, Danny called 'o2 'ic/el to say that he !as ""ettin" close to the source, and
he !ould soon "o to (artins2ur" and 2rin" 2ac/ the head o the Octopus#"
T#esday, (#g#st 6= Casolaro had been typing steadily since %onday, and by afternoon, he!d
finished$ Olga, his ho#se)eeper, helped him pac) a leather tote bag$ +he also remembered him
pac)ing a thic) sheaf of papers into a dar) brown or blac) briefcase$ 'anny wal)ed o#t the door
saying, /I have all my papers $$$ ish me l#c)$ I!ll see yo# in a co#ple of days$/ That was the last
time Olga saw Casolaro alive$
ednesday, (#g#st K= (ccording to Inslaw records, Casolaro called the 2amiltons in the afternoon,
and was p#t on hold$ 7efore 2amilton co#ld get free, he had h#ng #p$ (t some time on that same
day, Riconosciuto called $a,ilton a"ain to as/ or the inor,ation a2out the 8ustice
Depart,ent la!yer >(i/e %22ell?# $a,ilton called Casolaro, 2ut he had already let or
(artins2ur"$
Th#rsday, (#g#st B= Casolaro called 'anielle +talling and as)ed her to set #p appointments for him
the ne&t wee) with a former police officer, now employed as a private investigator, to learn ,ore
a2out the Laotian !arlord =uhn &a3s proposed 6olden Trian"le dru" trade#
,riday, (#g#st 9= 7y now 2amilton was starting to worry$ I tal) to 'anny everyday,/ 2amilton said$
/I had never Igone witho#t spea)ing to him for so longJ before, so I called 7ob .ichols in Los
(ngeles and as)ed whether he had heard from 'anny recently$/
.ichols told 2amilton />es,/ he had spo)en with 'anny late %onday night I(#g#st EthJ and he had
been /e#phoric$/ .ichols told 2amilton he 8.ichols9 was ta)ing off for 3#rope that evening$
It was at that point that Olga, 'anny!s ho#se)eeper, received fo#r or five threatening phone calls$
The first was abo#t 9 a$m$, a man!s voice, in good 3nglish, said, /I will c#t his I'anny!sJ body and
throw it to the shar)s$/(bo#t a half ho#r later, another call came in$ /'rop dead,/ the man!s voice
said$
+at#rday, (#g#st 16= (t 15=?6 that afternoon, a maid )noc)ed on the door of room E1K at the
+heraton %artinsb#rg Inn$ .obody answered, so she #sed her pass)ey to open the doorL tho#gh it
had both a sec#rity bolt and a chain loc) on the inside, neither one was attached$ hen she glanced
into the bathroom, she saw a lot of blood on the tile floor and screamed$ (nother hotel maid came
into the bathroom and saw a man!s n#de body lying in the bloodfilled t#b$ There was blood not only
on the tile floor b#t splattered #p onto the wall above the t#b as well$ The police were called to the
scene$
(t B=?6 p$m$ that night, #naware that 'anny!s body had been fo#nd, Olga, 'anny!s ho#se)eeper,
ret#rned to Casolaro!s ho#se to loo) for him$ The phone rang$ ( man!s voice said, />o# son of a
bitch$ >o#!re dead$/ It was not #ntil %onday, (#g#st 15, that a#thorities notified family and friends
that 'anny Casolaro was dead$
$ad Danny in act called Ro2ert 'ooth Nichols on (onday, %u"ust <th, and conronted hi,
a2out his relationship !ith (i/e %22ellC $ad he told Nichols he planned to ,eet !ith 4'I
oicials ro, Le5in"ton, =entuc/yC (nd what abo#t ,7I agent Thomas @ates, .ichols!
antagonist* +P> maga;ine!s article on 'anny Casolaro indicated that he spo/e !ith 6ates three
days 2eore his death, relatin" a conversation in !hich Nichols had !arned hi, to a2andon
the investi"ation#
4iconosci#to later conceded that he had tried repeatedly to reach 2amilton and Casolaro between
(#g#st E and 16th to !arn the, NOT to ,ention %22ell or Rodri"ue1 to Nichols, 2ut it had
2een too late# 7ill 2amilton told one investigator that he did .OT )now 2> 4iconosci#to was
in"#iring abo#t %i)e (bbell 1 #ntil (,T34 'anny!s death$
'o2 'ic/el3s conir,ation that Danny W%& trailin" (i/e %22ell in the last days 2eore his
death indicate that Danny ,ay have un/no!in"ly stepped into the lar"est narcotics
traic/in"Jintelli"ence operation the !orld#
GGGGGG
%nother indepth article ca,e to ,y attention !hich urther corro2orated Danny3s
investi"ation o 6il2erto Rodri"ue1# /The +trange 'eath of 'anny Casolaro,/ by 4on
4osemba#m in -anity ,air!s 'ecember 1991 iss#e incl#ded an interview with %ichael
4iconosci#to$ (ccording to 4osenba#m, 'anny!s investigations were ta)ing him into areas that
involved dangero#s )nowledge and dangero#s characters$ It was 'anny!s habit of /bo#ncing/
4iconosci#to!s stories off 4obert .ichols that p#t him in peril, 4iconosci#to told 4osenba#m$ One
o the thin"s he reportedly "2ounced" involved a ,a0or heroinrelated stin" operation#
%nother involved Riconosciuto3s clai, a2out an "eort 2y the Cali cocaine cartel to derail the
e5tradition o an alle"ed Colu,2ian /in"pin called 6il2erto#"
.ichols /went ballistic,/ according to 4iconosci#to, when 'anny bo#nced the @ilberto 84odrig#e;9
matter off him$ 4iconosci#to said he tried to warn 'anny$ /I called from that day on it was on a late
%onday T#esday, ednesday, all the way thro#gh the wee)end when they fo#nd 'anny IdeadJ,/ he
said$ /3very day I was calling the 2amiltons, as)ing if anybody had heard from 'anny$ (nd I was
frantic$/
Labeled by 4osenba#m as the /resident demon of the labyrinth,/ 4iconosci#to said /'anny!s theory
was different from the typical megaconspiracy theory$ 'anny was dealing with real people and real
crimes$/
4osenba#m as)ed 4iconosci#to abo#t the "er, !arare technolo"y he had fo#nd in 'anny!s
notes$ 4iconosci#to admitted that he had learned abo#t /horrible things/ going on at the Caba;on
Indian reservation b#t did not elaborate on the s#b0ect$ rote 4osenba#m, /This is the labyrinth
IthatJ 4iconosci#to was leading 'anny into the one he died in$/
<#st days before his death, 'anny had planned to visit the reservation$ In his notes were cryptic
references to slo!actin" 2rain viruses li)e %ad Cow 'isease, which co#ld be #sed against
targeted people 2y slippin" the virus into ,eat pies# 4iconosci#to told 4osenba#m that 'anny
was /concerned/ that he may have been a target of this vir#s$ /That was one of the reasons he
I'annyJ had s#ch an obsession with this story$ 2e felt he had been hit by these people$/
(ccordingly, 4iconosci#to filled 'anny!s head with allegations of 4obert 7ooth .ichols! sinister,
international covertworld connections$ $e painted a picture lin/in" Nichols to or"ani1ed cri,e
syndicates, the earso,e 8apanese .a/u1a, and various CI% and 'ritish intelli"ence plots
e,anatin" ro, Nichols3 riendship !ith "a le"endary 'ondish 'rit /no!n as @Dou2le Deuce3
>&ir Denis =endall?#"
4iconosci#to said .ichols was the )ey to 'anny!s Octop#s$ 7#t 'anny was receiving warnings
from 4iconosci#to!s co#nterpart as well$ 4obert 7ooth .ichols had flown to ashington '$C$ from
P#erto 4ico to warn 'anny to stay away from 4iconosci#to$
'anny!s girlfriend, endy eaver, had been present at one of the meetings at the ,o#r +easons
2otel bar when .ichols iss#ed the warning= />o# don!t )now how bad this g#y 4iconosci#to is $$$
he might not get yo# today, he might not get yo# ne&t month$ 2e might get yo# two years from
now$ If yo# say anything against him he will )ill yo#$/
.ichols repeated the warning several times, said eaver$ /(t least five times$/ eaver described
.ichols as /very charming, very handsome,/ b#t said /it Ithe meetingJ was a weird night, so weird$/
(nother friend of 'anny!s met .ichols at a l#ncheon at Clyde!s in Tysons Corner where .ichols
allegedly informed them that he had 0#st been as)ed to become /minister of state sec#rity/ on the
island of 'ominica$ 4eportedly, the island was going to be transformed into a CI( base$ The friend,
who spo)e to 4osenba#m on condition of anonymity, said .ichols was /very slic), very
civili;edappearing/ $$$ /oo;ing intrig#e,/ b#t he added that he had never witnessed a performance
li)e the one that ens#ed$
(fter l#nch Danny had pulled his riend aside and sho!ed hi, a purported 4'I !iretap
su,,ary on Nichols# The su,,ary !as part o 4'I a"ent Tho,as 6ates3s aidavit in
Nichols3 slander suit a"ainst hi,# The su,,ary lin/ed Nichols to the .a/u1a and to the
6a,2ino cri,e a,ily as a ,oney launderer$
'anny!s friend had been shoc)ed$ />o# 0#st p#t me in a meeting with this man and didn!t tell me
what the hell why didn!t yo# tell me before*,/ he as)ed 'anny$ 'anny said he wanted to see how
.ichols wo#ld react$ The friend told 4osenba#m, /In other words, he gaffed me with a hoo) and
tossed me in the water to see if the Octop#s wo#ld moveO/
'anny 2(' in fact been receiving death threats on the phone$ One threat reported by his
ho#se)eeper, />o#!re dead, yo# son of a bitch,/ which came ho#rs (,T34 'anny!s body had been
fo#nd, r#led o#t 'anny himself as a possible so#rce of the threats$ (nd his prophesy to his brother,
Tony Casolaro, /If anything happens to me it won!t be an accident,/ made it #nmista)ably clear that
'anny did, indeed, feel threatened$
.evertheless, 'anny appeared #pbeat to most of the people he tal)ed to prior to his death$ 'r$ Tony
Casolaro, a specialist in p#lmonary medicine, told -anity ,air that he didn!t believe his brother
committed s#icide beca#se 'anny was so e&cited and #pbeat abo#t his investigation on that last
%onday when he saw him$
The a#topsy e&amination of 'anny!s brain had revealed possible symptoms of %#ltiple +chlerosis,
b#t friends and family dismissed this as irrelevant beca#se 'anny had never complained of
symptoms or, to their )nowledge, )nown of the disease, if he had it$
Tony was also tro#bled by a n#mber of facts, one of which was 'anny!s c#rrent papers and files
which he too) to est -irginia were missing from his motel room$ 2is body had been embalmed
even before family members were notified of the death, and the motel room had been commercially
cleaned before any type of investigation, other than a c#rsory loo) at the death scene by police,
co#ld occ#r$
In his -anity ,air article, 4on 4osenba#m wrote that he had obtained one of Casolaro 3s survivin"
note2oo/s and ound ,entioned under the headin" o %u"ust H, our days 2eore Danny3s
death, the na,e "6il2erto#" It read= /7ill 2amilton (#g#st 6$ (R ### also 2rou"ht up
@6il2erto#3" 4osenba#m did not spec#late p#blicly who @ilberto might be, b#t it was obvio#sly
@ilberto 4odrig#e;, head of the Cali Cartel, at that time deeply involved with %ichael (bbell,
formerly of the 'epartment of <#stice$
GGGGGG
( do;en or so drafts of Casolaro!s proposed man#script along with notes and phone bills had been
sent to the estern 2istorical %an#script Collection at the Dniversity of %isso#ri by his brother,
'r$ Tony Casolaro$Tony Casolaro had sent the material to the Dniversity beca#se, at one time, the
I43 8Investigative 4eporters and 3ditors9 (ssociation, head"#artered at the Dniversity, had
researched the fatal carbombing of reporter 'on 7olles in (ri;ona$
7olles had been researching a mobconnected gold sm#ggling operation in that state$ Thro#gh Tracy
7arnett at I43, I learned that a grad#ate st#dent at the Dniversity had been assigned to catalog all
'anny!s material for event#al insertion into a data base$ In contacting the grad#ate st#dent, who by
then 8+eptember 199A9 wor)ed for (7C in 2o#ston, Te&as, I learned that e! i any 0ournalists
had inBuired a2out the notes#
7#t, interestingly, Chief (ssistant D$+$ (ttorney +teve Fipperstein from Los (ngeles, wor)ing for
the 'epartment of <#stice, had re"#ested copies of 'anny!s .OT3+, b#t declined 'anny!s phone
records$ The grad#ate st#dent noted that the notes and drafts of 'anny!s proposed ,anuscript
ocused on a Ca2al o intelli"ence people !ho, ori"inally consistin" o nu,erous na,es, !ere
su2seBuently narro!ed do!n to a2out ei"ht# One o those na,es !as 6len &hoc/ley#
&hoc/ley, o course, !as listed on the 'oard o Directors o 4#I#D#C#O# alon" !ith Ro2ert
'ooth Nichols#
&hoc/ley !as also a corporate partner in (eridian International Lo"istics, headed 2y Nichols#
&hoc/ley !as also a CI% contract e,ployee +accordin" to several sources- !ho alle"edly "ran
8ose Londono" o the Cali Cartel# This accordin" to Riconosciuto3s taped intervie! !ith
"overn,ent a"ents !hile ne"otiatin" or Witness )rotection#
I p#rchased everything of any significance pertaining to 'anny!s writings and doc#ments, incl#ding
the ,7I wire tap s#mmaries which corroborated everything I had learned to date$
In revie!in" the su,,aries, it 2eca,e apparent that the 4'I had inadvertently stu,2led
onto a CI% dru" traic/in" operation !hich included hi"h ran/in" La Cosa Nostra i"ures,
the 6a,2ino cri,e a,ily and the 8apanese .a/u1a#
One affidavit in s#pport of an application to intercept wire comm#nications over the telephone
listed names of those to be intercepted= Ro2ert 'ooth Nichols, Eu"ene 6iaBuinto +then )resident
o (C% Corportion Entertain,ent Division, and corporate partner !ith Nichols in (eridian
International Lo"istics-, (ngelo Commito, 3dward +ciandra, %ichael 'el @ai;o, <oseph
@arofalo, and others$
The purpose o the interceptions !as to deter,ine "source, type and Buantity o
narcoticsJcontrolled su2stances, ,ethods and ,eans o delivery, and the source o undin" or
purchasin" o narcoticsJcontrolled su2stances#"
The intercepted conversations read li/e a "Who3s Who" o or"ani1ed cri,e# It !as also
apparent that Eu"ene 6iaBuinto en0oyed a special relationship !ith 8ohn 6otti#
GGGGGG
(nn Clen), a long time friend of 'anny Casolaro!s and former associate of ashington '$C$
col#mnist <ac) (nderson, held all his personal notes which were not sent to the Dniversity$ In a
+eptember 1A, 199A phone interview, she noted that the last time she tal)ed to 'anny, that last
%onday before his death, he told her he!d crac)ed the Inslaw case$
I as)ed her, /'o yo# thin) he resolved that*/
(nn responded, /Oh, yes$ I C.O he did$ 2e TOL' me he did$ 2e said, N(nn, I bro)e Inslaw$!
(nd I said, N@ee;, 'anny that!s greatO! 7#t, I never as)ed him what he fo#nd beca#se he was very
despondent abo#t it$ 2e said, N>o# can have it$ >o# and <ac) I(ndersonJ can have the story$ I don!t
even want it$!/
(nn said 'anny was disg#sted and related their last conversation= /I said, N'anny, yo# wor)ed on
this Iso longJ and now yo# don!t want it*! 2e said, NIt!s 0#st a little piece of the p#;;le anyway$! &ee,
Insla! led hi, into this, 2ut Danny Buic/ly 2eca,e ,ore involved !ith the dru" aspects ###
!ith the CI% aspects, !ith the Wac/enhut aspects#"
I said, /I )now what yo# mean, beca#se I followed the same trail$/
GGGGGG
'anny!s proposed drafts and notes obtained from estern 2istorical %an#script Collection at
Dniversity of %isso#ri revealed information never p#blished in mainstream media$ Typewritten and
handwritten lists of contacts incl#ded names and telephone n#mbers of Ted @#nderson, 4aymond
Lavas, 4obert .ichols, Peter Fo)os)y, 7ob 7ic)el, ,ahim +afar, 3arl 7rian, Peter 'ale +cott, (rt
elm#s, <ohn -anderwer)er, <ac) 7l#m, 'r$ 2arry ,air, 7ill 2amilton, 7ob Parry, 7ill %cCoy, and
n#mero#s others$
(ost o Danny3s drats ocused on the &outheast %sian heroin connection, CI% dru" ,oney
used to inance the Contras, and the a2ility o terrorists to send ,issiles containin" dan"erous
che,icals and 2iolo"ical diseases into the U#&#
One typewritten draft, entitled, /7ehold, ( Pale 2orse,/ described an /international cabal Iin
+o#thern CaliforniaJ whose freelance services covered parochial political intrig#e, espionage,
sophisticated weapon technologies that incl#ded bioto&ins, dru" traic/in", money la#ndering and
m#rder1for1hire$/ (ccording to 'anny, the cabal contin#es today, /its origins spawned thirty years
ago in the shadow of the Cold ar$/
Casolaro!s <#ne 1 <#ly 819919 phone bills told a story of their own$ 2aving followed 'anny!s
investigative trail for three years, I had an entire directory of phone n#mbers relating to his
in"#iries$ %ost obvio#s were 'anny!s n#mero#s calls prior to his death to 4obert 7ooth .ichols in
Los (ngeles$ %ost of the calls from ashington '$C$ to Los (ngeles lasted an average of one to
two ho#rs, invariably in the wee ho#rs of the morning 1=E6 a$m$, 15=?6 a$m$, 1=1? a$m$, 15=1B a$m$,
etc$
It was also apparent that 'anny was riding a seesaw with .ichols and 4iconosci#to$ 2e wo#ld tal)
to one, then the other, often on the same day, bac) and forth for months$ Then s#ddenly, he c#t off
4iconosci#to and his calls to .ichols increased in fre"#ency$
Other phone n#mbers matched those of Ted @#nderson, (lan 7oya), a lawyer in Dtah, 7o @rit;,
2einrich 4#pp and Ch#c) 2ayes, a self1professed 8on the Internet9 CI( operative$ 'anny often
called 2ayes immediately after he spo)e with .ichols$ Oddly, 2ayes never came forward d#ring the
official investigation of 'anny!s death to disclose the content of those conversations$
GGGGGG
ithin si& months of Casolaro!s death, 4iconosci#to was again attempting to trade information in
e&change for entry into a itness Protection Program$ 7#t this time, instead of #sing Casolaro or
7ill 2amilton, he was #sing me to ma)e the contacts$
(t 4iconosci#to!s re"#est, I contacted a man whom I will identify as .$7$ at the 7(T, 87#rea# of
(lcohol, Tobacco M ,irearms9 in +an ,rancisco$ %ichael had advised me to call this agent beca#se
the 7(T, was /Treas#ry 'epartment/ as was ,inCen$
I set #p the phone meeting and 4iconosci#to called the +an ,rancisco 7(T, collect, as sched#led$
.$7$ listened attentively to %ichael, then ran a chec) on him thro#gh the departmental comp#ter
system$ +hortly thereafter, I received an #nnerving phone call$
.$7$ advised me in strong terms to /get o#t of this/ while I still co#ld$ 2e said I wo#ld end #p
getting s#bpoenaed as a witness if I didn!t discontin#e my investigation$ 2e added that sometimes
people got )illed or committed s#icide when they got involved with %ichael 4iconosci#to or
4obert 7ooth .ichols$
.$7$!s comp#ter in"#iry had bo#nced bac) on him$ 2is s#perior in the 7(T, had been notified by
someone from another agency he didn!t say who who had instr#cted .$7$ that he was to have .O
f#rther contact with %ichael 4iconosci#to or me$
hen I related this conversation to %ichael, he indicated no s#rprise, b#t immediately wanted to be
p#t bac) in to#ch with 4$<$ 2e needed someone in the government with access to his files to verify
his credibility and get that information bac) to Tom Olmstead, his attorney$ 4egarding the comp#ter
in"#iry, 4iconosci#to e&plained as follows= /I )now what!s happening here$ Tell 4$<$ if he #ses
,OI%+, ,ield Office Information %anagement +ystem, and if he leaves an a#dit trail, he!s going to
be e&posed$ There are all sorts of different levels of flags on my name$ henever the comp#ter gets
a hit, the iss#ing agency is notified as to who made the re"#est and from where it came$/
/%i)e,/ I as)ed, /how can he get aro#nd that* I don!t #nderstand $$$/
/Listen, whenever there!s a hit on one of those flags, whether it!s a want or IaJ warrant, or whether
it!s simply an administrative interest, #nbe)nownst to the #ser who!s ma)ing the re"#est, his access
is a#dited$ Tell 4$<$ before he starts ma)ing in"#iries, no matter how discreet he thin)s they are, that
he sho#ld have someone totally #nco#pled from him to enter into ,OI%+$/
/(lright$/
/.ow,/ %ichael contin#ed, /if he goes into .CIC or .(''I+, ah, .CIC is the least dangero#s as
far as ma)ing in"#iries, beca#se .(''I+ can trac) 0#st li)e ,OI%+ $$$/
/(lright$/
/.ow, on .CIC there is a Nnonelectric! filing on me and he can ma)e the re"#est that way witho#t
alerting anyone$ If he has tro#ble chec)ing anything o#t, tell him I can help him along$/
/2e can!t call yo# at the 0ail$ 2ow can he get in to#ch with yo#*/
/Thro#gh my attorney$ The min#te he I4$<$J gets a line on me, as) him to notify my attorney$ Tell
him he can chec) my attorney o#t thro#gh the government$ Tom has e&cellent records with the
government$/
/(lright$/
/3&plain to 4$<$ that I )now P4O%I+3, I )now ,OI%+ inside o#t$ I helped develop that internal
trac)ing a#dit trail $$$/
I had lost all hope of 4$<$ resc#ing %ichael 4iconosci#to, and I thin) in his heart, %ichael )new
that too, b#t I passed the information along as re"#ested$ 4$<$ politely accepted the information as
he always did, then I never heard from him again$
C$%)TER I
Thro#gh one of %ichael!s contacts, I was able to obtain the corporate doc#ments on ,$I$'$C$O$
Corporation 8,irst Intercontinental 'evelopment Corporation9$ This formidable organi;ation lead
me straight to the head of The Octop#s$The 7oard of 'irectors of ,I'CO consisted of the following
principles=
819 Ro2ert (aheu, &r, -ice President, 'irector former ,7I agent, former C3O of 2oward 2#ghes
Operations, senior cons#ltant to Leis#re Ind#stries$
859 (ichael %# (c(anus, 'irector, -ice President and @eneral Co#nsel to ,I'CO former
%ssistant to the )resident >Rea"an? o the United &tates at the White $ouse in Washin"ton
D#C$
8?9 Ro2ert 'ooth Nichols, 'irector, +r$ -ice President and Chairman of Investment Committee
Chief 3&ec#tive Officer of 4$7$.$ Companies, International, a holding company for man#fact#ring
and development of high technology electronics, real estate development, constr#ction and
international finance$
8A9 6eor"e =# )ender, 'irector former 'irector of Pacific Ocean area of 7#rns M 4oe, Inc$, an
international engineering M constr#ction corporation with active pro0ects on all seven continents of
the world$ +enior engineer cons#ltant to 7#rns M 4oe, Inc$
8E9 Cenneth ($ 4oe, 'irector Chairman and President of 7#rns M 4oe, Inc$, International engineers
and Constr#ctors, a family corporation owned by Cenneth 4oe and family$ %a0or c#rrent pro0ect of
the company is the engineering design and constr#ction of the D$+$($ ,ast 7reeder .#clear 4eactor
Plant in con0#nction with estingho#se 3lectric Corporation which is responsible for the n#clear
system s#pply of steam$ Constr#ction val#e of present b#siness bac)log of 7#rns M 4oe, Inc$ is in
e&cess of si& billion D$+$ dollar$
869 ,rances T$ ,o&, -ice President and 'irector former @eneral %anager of L$($ International
(irport, former 'irector of (viation for 2oward 2#ghes .evada operations, now called +#mma
Corporation, City %anager of +an <ose, California$
8K9 Clint W# (urchison, <r$ 'irector Owner of the 'allas Cowboys .,L football team$
8B9 illiam %$ Pender, 'irector and +r$ -ice President licensed contractor, +tate of California$
899 6len R# &hoc/ley, 'irector Cons#ltant to ,ort#ne E66 Companies in b#siness management$
Internationally )nown as financial cons#ltant in f#nding$
The list of directors was accompanied by a letter dated <an#ary 11, 19B? on ,I'CO letterhead
originating o#t of +anta %onica, California addressed to 4obert 7ooth .ichols in %arina 'el 4ey,
California$ The letter, signed by @eorge C$ Pender, briefly referenced a copy of a resol#tion
res#lting from a meeting of the 7oard of 'irectors of ,I'CO$
On (pril 1?, 19B?, 4obert 7ooth .ichols wrote a letter to <oseph ,$ Prelo;ni) in %adison,
isconsin, o#tlining proposed arms pro0ects, one of which was to b#ild a two story b#ilding of
appro&imately KE66 s"#are feet with concrete walls and floors to ho#se the /4 M ' position$/ 8I
later fo#nd the 4 M ' facility referenced in a 19B1 ac)enh#t Interoffice memorand#m as a
companion facility to ac)enh#t to be constr#cted on the Caba;on Indian reservation for the
assembly of shell casings, propellants, war heads, f#ses, comb#stible cartridge cases and other
weapons systems9$
.ichols wrote to Prelo;ni), /+ho#ld there be any "#estions with regard to my credibility,
veriication can 2e ,ade throu"h 4#I#D#C#O# I have enclosed a copy of that appointment$/
If in fact, ,$I$'$C$O$ was a vehicle of The Octop#s, then the tentacles of its 7oard of 'irectors lead
straight to the head$ Clint %#rchison, <r$ of 'allas, Te&as was the son of Clint %#rchison, +r$ who,
according to 'ic) 4#ssell, a#thor of the boo), /The %an ho Cnew Too %#ch,/ 8pp$ E51E5?9 was
c#t from the same political cloth as 2$L$ 2#nt$
rote 4#ssell= /7ac) in 19E1, after @eneral 'o#glas %ac(rth#r was relieved of his Corean
command by President Tr#man, 2$L$ 2#nt accompanied %ac(rth#r on a flight to Te&as for a
spea)ing to#r$ $unt and (urchison !ere the chie or"ani1ers o the pro(ac%rthur orces in
Te5as# They wo#ld always remember the general standing bareheaded in front of the (lamo, #rging
removal of the Nb#rden of ta&ation! from enterprising men li)e themselves, charging that s#ch
restraints were imposed by Nthose who see) to convert #s to a form of socialistic endeavor, leading
directly to the path of Comm#nist slavery$!/
(ccording to 4#ssell, 2#nt went on to set #p a %ac(rth#rforpresident head"#arters in Chicago,
spending P1E6,666 of his own money on the general!s rel#ctant 19E5 campaign, which event#ally
fell apart as %ac(rth#r adopted the strident rhetoric of the right wing$
/+till, connections were made,/ wrote 4#ssell, /Charles illo#ghby, for e&ample, was a reg#lar part
of the %ac(rth#r2#nt ento#rage and #ndo#btedly was ac"#ainted with %#rchison as well$/ 7oth
Ithe 2#nts and the %#rchisonsJ c#ltivated not only powerf#l people on the far right, b#t also <$
3dgar 2oover, 4ichard .i&on, organi;ed crime fig#res, and Lyndon <ohnson, whose rise to power
emanated directly from his friends in Te&as oil$
/Li)e 2#nt, (urchison !as an ardent supporter o &enator 8oseph (cCarthy3s
antico,,unist crusade# (cCarthy ca,e oten to the e5clusive hotel that (urchson opened in
La 8olla, Caliornia, in the early *F<A3s# &o did Richard Ni5on and 8# Ed"ar $oover#
/In 1961, after .i&on had lost the presidential election to <,C the previo#s year, %#rchison sold
.i&on a lot in 7everly 2ills for only P?E,666 a lot (urchison had inanced throu"h a $oa loan
which .i&on sold two years later for PB6,666$
hen 2oover visited the 8%#rchison9 2otel 'el Charro, as he did every s#mmer between 19E? and
19E9, %#rchison pic)ed #p his tab$ That amo#nted to abo#t P19,666 of free vacations for the ,7I
'irector over those years$
hether 2oover )new it or not, al,ost 9A percent o the (urchison Oil Lease Co,pany in
O/laho,a !as then o!ned 2y 6erardo Catena, chie lieutenant to the 6enovese cri,e a,ily#
7y the a#t#mn of 196?, a ma0or scandal was brewing aro#nd 7obby 7a)er, whom -ice President
Lyndon <ohnson had made secretary of the +enate 'emocrats in 19EE, when L7< was ma0ority
leader$ L7< called 7a)er /my strong right arm, the last man I see at night, the first I see in the
morning$/
On October B, 196? 7a)er was forced to resign, as a +enate investigation of his o#tside b#siness
activities began prod#cing sensational testimony on n#mero#s "#estionable deals$ "'a/er3s deals
!ere ti"htly inter!oven !ith the (urchison a,ily and the (o2," wrote 'ic) 4#ssell$ /hat
first attracted the attention of +enate investigators was a laws#it bro#ght against 7a)er in 196? by
his associates in a vending company, alleging that he failed to live #p to certain bargains$ Those
associates were, for the most part, Las -egas gamblersL one of them, 3dward Levinson, was a
lie#tenant of ,lorida mobster %eyer Lans)y, whose ,remont 2otel in -egas was financed thro#gh a
2offa loan$
/7a)er, it later t#rned o#t, did considerable b#siness with the %ob in Las -egas, Chicago,
Lo#isiana, and the Caribbean$ Thro#gh 7a)er, Levinson had also gotten to )now Clint %#rchison$/
"Clint (urchison, 8r# >listed on the 'oard o Directors o 4IDCO? tried to persuade the
&enate Rules Co,,ittee in *FH; that his o!nreal estate dealin"s !ith 8i,,y $oa in 4lorida
!ere @hardly relevant3 to the 'a/er investi"ation$"
Ro2ert (aheu +&enior 7ice )resident and Director o 4#I#D#C#O#-, was also mentioned in
4#ssell!s boo), /The %an ho Cnew Too %#ch,/ 8pp$ 1969$ rote 4#ssell= /7ac) in 1966, with
then vice president 4ichard .i&on serving as the hite 2o#se!s liaison to the CI(!s C#ban
operations, the CI% had initiated its long series of assassination attempts against Castro$ The
@cutouts3 in the operation started !ith Las 7e"as 2illionaire $o!ard $u"hes3s ri"hthand ,an,
Ro2ert (aheu, !ho "ot in touch !ith or"ani1edcri,e leaders &a, 6iancana, 8ohnny Rosselli,
and &antos Traicante, 8r# They in t#rn enlisted the direct assistance of C#ban e&iles $$$/
Thro#gho#t my conversations with %ichael 4iconosci#to the names of 4obert 7ooth .ichols,
@eorge Pender, @lenn +hoc)ley and %ichael %c%an#s 8other directors of ,$I$'$C$O$9 cropped #p
repeatedly, b#t I fo#nd few references to them in any p#blished boo)s or maga;ines$ Riconosciuto
oten stated that 6eor"e )ender and 6lenn &hoc/ley !ere CI% oicials, !hich I later
corro2orated throu"h )eter Oo/os/y, a partner o Ro2ert 'ooth Nichols3s#
In (#g#st, 199A, I did, however, manage to obtain three significant letters with the signat#res of
(ichael %# (c(anus and 6eor"e )ender on them$
The following letters on ,$I$'$C$O$ confirm its presence in Lebanon$
Letter .o$ 1 ritten on hite 2o#se letterhead stationary, dated, 8une 9F, *FG:, ro, (ichael %#
(c(anus, %ssistant to the )resident +Rea"an- to @eorge C$ Pender in +anta %onica, California=
/'ear @eorge= It was good to see yo# again$ I appreciate the #pdate yo# and yo#r associates gave
me concerning the stat#s of yo#r efforts in the reb#ilding of Lebanon$
/itho#t "#estion ,I'CO seems to have a considerable role to offer partic#larly in the massive
financial participation being made available to the government of Lebanon$
/(s yo# are aware, the Dnited +tates government is providing financial aid$ e are very interested
in the s#ccess of the reb#ilding effort in Lebanon$ I will appreciate yo#r contin#ing to )eep me
posted$ 7est personal regards$ +incerely, %ichael ($ %c%an#s, (ssistant to the President$/
It is interesting to note that in 19B5, one year before the above letter was written, Israel invaded
Lebanon in a bid to cr#sh the PLO strongholds there and install the @amayel family in power$ (t
that time Tel(viv was s#pporting the #ltraright Christian Phalange militia $ It !as the Christian
)halan"ist ,ilitia !hich irst 2rou"ht Le2anon into the heroin trade# (nd the powerf#l
Christian @amayel family which led the way in t#rning to o#tside forces for money, g#ns and
political s#pport$ 4ore,ost a,on" those sources !as the international heroin traic/in"
net!or/#
This according to 7ill einberg, editor of 2igh Times maga;ine, who wrote the indepth article,
/The +yrian Connection/ in %arch 199?$ einberg also noted that as far bac) as 19EE, D$+$ +enate
<#diciary Committee hearings learned that &a,i el =houri, the 6a,ayel3s chie o inances, !as
i,portin" ra! Tur/ish opiu, into Le2anon, !here it !as processed into heroin and then
shipped to +icily for ree&port thro#gho#t (merica and 3#rope$
El =houri controlled the 6a,ayel a,ily3s shippin" lines, tradin", truc/in" and air rei"ht
co,panies# El =houri3s ,achine !as the Le2anese !in" o the 4rench Connection the wing
that contin#ed to do b#siness with the +icilians in a bid to propel the @amayel family to power$
(fter the Israeli invasion, the Le2anese )arlia,ent elected to the presidency 'echir 6a,ayel
!ho had lon" 2een on the CI% payroll# 7#t before he co#ld ta)e office, 7ashir was )illed by an
assassins bomb, and 7echir!s brother, (min, was installed as president$
The following letter from @eorge Pender, President of ,I'CO, to President (min @amayel in
7eir#t is printed in its entirety here$
Letter .o$ 5 ritten on ,$I$'$C$O$ letterhead stationary, dated <#ly 15, 19B?, from @eorge C$
Pender, President of 4IDCO, to )resident %,in 6a,ayel, )residential )alace, 'eirut,
Le2anon#:
/'ear %r$ President= I had visited 7eir#t in ,ebr#ary and %ay, 19B? to disc#ss ,I'CO participation
in the redevelopment of Lebanon$ These meetings were held with the Chamo#ns, (aurice
6hane, and %o#rad 7aro#dy$ Of partic#lar interest is the fact that ,I'CO offered to arrange the
financing of pro0ects considered, provided they were in the government sector$ Dnfort#nately, the
response, to date, is dragging and a golden opport#nity for Lebanon is slowly dying$
/I had made no effort to see yo# at that time as I tho#ght it more pr#dent to delay #ntil I had
something more tangible to present$ I e&pressed specific interest in the reb#ilding of 'amo#r and
(l)hyam$ ,I'CO has presented these pro0ects to an international Tr#st with whom we have a close
relationship, and we are very confident that we can arrange the f#nding #nder International
Chamber of Commerce format, provided ,I'CO can negotiate t#rn)ey contracts on both pro0ects$
e are ready, willing and able to proceed immediately on this basis$
/I #nderstand yo# will be at the hite 2o#se on <#ly 55nd$ o#ld it be possible for me to meet
with yo# in ashington, '$C$ on <#ly 51st briefly so that I may personally present o#r interest in
Lebanon* (s per copy of attached letter, the hite 2o#se is actively interested in o#r efforts$
/,or yo#r personal information, I was a good friend of 7echir$ I was with him in 7eir#t in 19K6
when the +yrian (rmy came in to police$ hen he later visited the Dnited +tates on a spea)ing to#r,
my wife and I went to ,ramingham, %assach#setts to meet with him$ I miss him tremendo#sly$
/I wo#ld appreciate yo#r reply as soon as possible$ >o# can also reach me via tele5 H<9;G: R'N
>Ro2ert 'ooth Nichols? %&&OC& L&%# Than) yo# for yo#r time and consideration$ +incerely
yo#rs, @eorge C$ Pender$/
I cannot stress eno#gh the importance of this letter ,rom @eorge Pender to (min @amayel$ In the
very first paragraph of Pender!s letter he noted that /(aurice 6hane," participated in the
meetings held in 7eir#t in %ay 19B? to disc#ss ,$I$'$C$O$!s participation in the redevelopment of
Lebanon$
(ichael Riconosciuto had stated +on pa"e ;A o this ,anuscript- that he had !or/ed directly
under "(aurice 6ane," and 6eor"e )ender in Le2anonP 4iconosci#to had e&plained that
(aurice had a "relative, either a 2rother or a cousin, !ho !as a senior DE% oicial !ith
(ichael $urley#"
Then, in a 199? boo) entitled, /Trail of the Octop#s/ by 'onald @oddard with Lester Coleman, on
page 1E5, I st#mbled across the name of 4red 6ane, in the following conte&t= "The nu,2er o
DE%controlled deliveries o heroin do!n the pipeline to the United &tates had increased
noticea2ly durin" the !inter as a result o 4red 6ane,3s special /no!led"e o the Le2anese
co,,unities in Detroit, $ouston and Los %n"eles#"
This was independent corroboration of a lin) between ,$I$'$C$O$ 8@eorge Pender and %ichael
%c%an#s9 and the very sa,e heroin operation in Nicosia, Cyprus !hich Riconosciuto had
descri2ed in detail to ,e in Dece,2er *FF*P
It also directly connected @eorge Pender with %ichael T$ 2#rley$ @oddard and Coleman reco#nted
how /members of the <afaar clan and other '3( co#riers wo#ld arrive at Larnaca with s#itcases f#ll
of highgrade heroin, white and crystal, and be met off the boat $$$ by officers of the Cypriot Police
.arcotics +"#ad, who then drove them #p to the 3#ramae office in .icosia$/In his interview with
4$<$ 8page ?K9, 4iconosci#to had maintained that /,$I$'$C$O$ had a companion company called
3#ramae Trading $$$/ Three years later, /Trail of the Octop#s,/ described 3#ramae as s#ch=
/Coleman was given a des) at the Eura,ae Tradin" Co,pany#, Ltd#, a '3(:CI( Nfront! newly
set #p by the Cypriot Police .arcotics +"#ad in a l#&#ry threebedroomed pentho#se apartment
down the street from the D+ 3mbassy$ It gave him the creeps from the start$
/Intended as a place where '3( and CI( agents co#ld meet #nobserved with informants and
clients, as a message drop for CI% ar,s dealers supplyin" IraB and the %"han re2els, as a
waiting room for '3( CI!s and co#riers from Lebanon, and as a transit point, not 0ust or heroin,
b#t for cash, doc#ments and bootleg comp#ter software moving to and fro along the
7eir#t.icosiaD+ pipeline, 3#rame, as r#n by 3l<orr, was more li)e a lowlife social cl#b than a
secret intelligence centre$/ Coleman had complained to 2#rley, b#t 2#rley had 0#st br#shed it aside$
It is note!orthy that 6eor"e )ender listed Ro2ert 'ooth Nichols3s "tele5" nu,2er at the
2otto, o his letter to Le2anon )resident %,in 6a,ayel# '#ring that time span, .ichols and
Pender 8when they weren!t in Lebanon9 !ere operatin" a N&C listenin" post ro, a condo at
(arina Del Rey# It !as alle"edly the U#&# end o the Nicosia, Cyprus operation# %ichael
4iconosci#to, Ted @#nderson and (llan 7oya), an attorney representing 4iconosci#to, all had
stories to tell abo#t apartment n#mber /66K$/ %ore on this in a moment$ .e&t, was the Lebanese
response to @eorge Pender!s aforementioned letter 8.o$59$
Letter .o$ ? ritten on (rab 7an) Limited letterhead, dated .ovember 5?, 19B?, from (bd#l
%a0eed +homan, Chairman:@eneral %anager of (rab 7an) Limited in (mman, <ordan to @eorge
C$ Pender in +anta %onica, California=
/'ear %r$ Pender= %r$ (hmad has tal)ed to me abo#t the f#nd to reconstr#ct Lebanon and we the
(rab 7an) together with a gro#p of other ban)s will be glad to cooperate with yo# concerning this
respect$
/e shall disc#ss, in f#t#re, how this cooperation will be made and on what conditions and plans$
/>o# have mentioned in yo#r letter to %r$ (hmad on +eptember 5Kth that this und a,ounts to
U&K three 2illion or ,ore# There is no problem to ta)e care of this by the (rab 7an) and the other
gro#p of ban)s as stated above$ The terms and conditions will be disc#ssed with yo# provided the
condition is clear in Lebanon and s#b0ect to the approval and co#nter g#arantees of the Lebanese
(#thority$ >o#rs sincerely, (bd#l %a0eed +homan, Chairman:@eneral %anager$/
It is unli/ely any "reconstruction" +unded 2y 4#I#D#C#O#- ever too/ place in Le2anon# Only a
Con"ressional investi"ation could deter,ine !hat the U&Kthree 2illion dollars !as actually
used or#
The ne&t doc#ment, pertaining to 4obert 7ooth .ichols, +enior -ice President of ,$I$'$C$O$,
originated from an interview between <effrey +teinberg, a writer for 3&ec#tive Intelligence 4eview,
and %llan 'oya/, an attorney in Dtah whom %ichael 4iconosci#to contacted immediately after his
arrest in ashington state$
%ichael T$ 2#rley had allegedly been transferred from .icosia, Cypr#s to '3( in ashington state
shortly before %ichael!s arrest$ 4iconosci#to!s arrest had ta)en place with a wee) after signing the
Inslaw affidavit$
It is note!orthy that Danny Casolaro also contacted and intervie!ed %llan 'oya/ shortly
2eore his death# (ccording to Ted @#nderson and others who )new 'anny, 7oya) met with
Casolaro in ashington '$C$ and provided him with a copy of a transcript of the meeting between
himself 87oya)9, 4iconosci#to, and Ted @#nderson, who at that time was 4iconosci#to!s
investigator$
I later obtained the same transcript from @#nderson!s live1in partner, <$%$, and have related the
contents of that e&plosive transcript in Chapter 1?$
%eanwhile, the following /%emorand#m for the ,ile,/ dated 65E91, was written by +teinberg after
his interview with 7oya)= 83&cerpted9 /I met at length +at#rday, <#ne 55, 1991 with (llan 7oya),
an attorney from Dtah who is representing %ichael 4iconosci#to in his pending dr#g case$ 7oya) is
not the lead attorney and will not apparently be ma)ing co#rt appearances in the case$
/7oya) reco#nted the following personal bac)gro#nd information= 2e was in the D$+$ (rmy in
+pecial ,orces and apparently did some contract wor) for the CI( d#ring the 1966!s and early
19K6!s$ (t some point in the early K6!s, he wor)ed briefly for the 'r#g 3nforcement (dministration
8or its antecedent agency9, being stationed in California$
/7oya) had some falling o#t with the '3( and left the government service altogether, entering law
school$ hile in law school, 'oya/ 2eca,e riendly !ith 8i, Nichols, a class,ate# Nichols told
hi, that he had a 2rother !ho !as heavily involved in or"ani1ed cri,e and had been disowned
by his family$
/Once o#t of law school, 7oya) 0oined a 2ollywood law firm and became involved in criminal
defense wor), representing a n#mber of well placed est Coast dr#g traffic)ers$ (t some point,
7oya) moved to Dtah 8he is a practicing %ormon9, while retaining his California law practice on a
parttime basis$
/In addition to his o$c$ Iorgani;ed crimeJ clientel, 7oya) also maintained contacts and apparently
did some legal wor) for some of his old b#ddies from his @reen 7eret and CI( days$ One s#ch pal
was (rt +#ches), who ran a CI( proprietary company called 2offman 3lectronics$
/ $$$ (t some point in the late 19K6!s, one of 7oya)!s clients, a %ormon old boy named Cap Cressop,
who was a technical wi;ard, was approached by 4obert .ichols and as)ed to man#fact#re a
prototype laser site for a rifle$ Cressop was offered a P566,666 contract for the 0ob b#t he became
s#spicio#s when .ichols wanted to pay him in cash$
/7oya) contacted Nichols at his (arina Del Rey, Caliornia ho,eJoice >apart,ent "AAI"? and
the two had a lengthy meeting there$ 7oyac)!s description of that meeting is that it was contin#o#sly
interr#pted by telephone calls and tele5 ,essa"es# 7oya) came away convinced that Nichols !as
involved in lar"e scale ille"al dru" operations#
/(fter cons#lting with one of his close friends from @reen 7eret days, then an assistant D$+$
(ttorney named 'e&ter Leitenen 8now the %iami D$+$ (ttorney9, 7oya) went to the Los (ngeles
,7I office with the s#spicions abo#t .ichols! activities$
/The ,7I bac)gro#nd chec) Icond#cted by Ted @#ndersonJ on 4obert 7ooth .ichols 8born 19A? or
19AA he co#ldn!t remember for s#re9 revealed that he was Ns"#ee)y clean$! In fact, he had a Class I
machine g#n license$
/7oya) did discover, however, that one of the people .ichols referenced as a b#siness associate and
personal friend, $arold O/i,oto, !as 2elieved 2y so,e o his sources to 2e a top 8apanese
or"ani1ed cri,e i"ure 2ased in $a!aii# O/i,oto !as descri2ed as a top a"ent in the .a/u1a
overseas$
/Over the ne&t two year period, after the L$($ ,7I had dropped any interest in the .ichols matter,
7oyac)!s friend, I(rth#rJ +#ches), repeatedly ran into Nichols in such places as &in"apore, the
)hilippines, and Tai!an# &uches/ !as 2ased out o Ourich, &!it1erland d#ring this period,
apparently still doin" his ront ,an !or/ or the CI%$
/7oya) says that information developed d#ring this period, thro#gh +#ches) and others, IindicatedJ
that Nichols !as indeed a 2i"ti,e dru" dealer !ho !as very !ell insulated from any D$+$ law
enforcement problems$ .ichols operated e&cl#sively overseas$ henever he came to the Dnited
+tates, he never engaged in any illegal activities$
/2owever, 7oya) described .ichols! r#m importing b#siness as a cover or 2i"ti,e heroin
traic/in" ro, the 6olden Trian"le# .ichols was also named as N%r$ 7ig!, according to 7oya),
in the %edellin Cartel, in dr#g prosec#tions in Dtah and Los (ngeles$
/Three to fo#r years ago, 7oyac) received an o#t of the bl#e telephone call from %ichael
4iconosci#to$ %ichael identified himself as a former employee of 4obert .ichols$ 2e also
referenced Ted @#nderson as a Nm#t#al friend$! 7oya) had only met Ted once very briefly when he
was pressing the L$($ ,7I to loo) into the .ichols dope s#spicions $$$/
/ $$$ Then in (pril 1991, 7oya) received a phone call from Ted @#nderson, informing him that
N%ichael was in tro#ble$ 2e was ca#ght in a government frame#p$!
/7oya) ret#rned to his bac)gro#nd profile of 7ob .ichols, parts of which were apparently provided
by 7ob!s estranged brother, <im .ichols$ It seems that as a youn" ,an, Ro2ert Nichols !ound up
in $a!ii unctionin" as a hit,an or the Ton"s# $e !as @adopted3 as the .a/u1a "odson o
$arold O/i,oto, a 6Kyearold car dealer in 2awaii$
"Nichols "re! up to 2e a 2i" 2usiness ront ,an or the 4ar East syndicate# 2e reportedly
la#ndered between PE6566 million for ,erdinand %arcos$ 2e now owns an estate in 2awaii, a
fe#dal castle o#tside of %ilan, Italy and the referenced %arina 'el 4ay home in California$
/.ichols has an office in F#rich$ (t one point, he !as reportedly involved in the s,u""lin" o
China White heroin into (e5ico where it was treated to loo) li)e the %e&ican brown heroin
which was more pop#lar at the time$
/It sho#ld be emphasi;ed that all of this information abo#t 4obert .ichols comes e&cl#sively from
(llan 7oya)$ .one of it has yet been independently corroborated to my )nowledge$ 7ill 2amilton
and some other people involved in trac)ing the Inslaw story have all spo)en to I4obertJ .ichols and
report that he has been straightforward with them and has provided leads and doc#ments re=
%ichael 4iconosci#to$
/.ichols is listed on the board of directors of ,irst Intercontinental 'evelopment Corporation
8,I'CO9 along with @eorge Pender and several officials of the 2oward 2#ghes lin)ed +#ma
Corporation$/
One of the most s#rprising, and dist#rbing, doc#ments I fo#nd in %ichael 4iconosci#to!s hidden
files 8see Chapter 99 was an envelope with a notation on it, handwritten and signed by Ted
@#nderson, which read as follows=
"(ichael: Ray,ond >Lavas? is arrivin" at L%E, I:<< p#,#, %ir Canada via li"ht IF: ro,
Toronto# Will have to "o throu"h Custo,s# This !ill "ive us another ,e,2er or our
dru"Jar,s operation# Only pro2le, >is? Ray,ond !ill pro2a2ly 2e usin" instead o sellin"#
&orry I didn3t "et to D#%# oice# I tried to call, 2ut no ans!er# 'y the ti,e I ou"ht the traic
to the 2an/ and did ,y 2an/in", it !as too late Will 2e ho,e toni"ht +G*G- GGAH9:G# T#6#"
4aymond Lavas was Ted @#nderson!s forensic e&pert when he wor)ed for the ,7I$ Lavas was in
constant contact with 7obby 4iconosci#to after %ichael was incarcerated$ In fact, everyone was
watching %ichael and 7obby very closely$
C$%)TER G
In %arch, 199?, t!o years ater %ichael 4iconosci#to had attempted to trade information on the
,$I$'$C$O$:3#ramae dr#g:intelligence operation in Lebanon to the government, the aforementioned
maga;ine article printed in 2igh Times maga;ine by 7ill einberg, entitled, /The +yrian
Connection,/ e&posed CI% penetration into the 'e/aa 7alley dru" trade in Le2anon#
3ssentially, this article validated m#ch of 4iconosci#to!s earlier information$ The following are
some e&cerpts=
/ $$$ (any o Le2anon3s ar,ed actions depend on the international dru" trade or unds,"
wrote einberg$ /Each para,ilitary "roup controls its o!n port in or around 'eirut !hich
serves as a transer point or dru"s on the !ay out o Europe and %,erica and !eaponry on
the !ay in ro, the international ,ar/et# Whoever holds the ertile 'e/aa >7alley? holds the
tic/et to po!er# %s the !ar escalated in the late *FIA3s, hashish, the traditional ,ainstay o the
'e/aa, started to 2e replaced 2y the ,ore lucrative heroin# (ari0uana ields !ere converted
to opiu, ields, hashish production co,pounds converted to heroin la2s#"
$eroin production e5ploded in the 'e/aa 7alley under the &yrian occupation# $o!ever, the
&yrian occupation orces didn3t touch the dru"s, 2ut "proited ro, the trade and protected
it#" It !as esti,ated that up to K9 2illion in protection ,oney !as paid annually 2y dope
plantation operators to &yrian occupation orces#
DE% oicial 4eli5 8i,ene1 told a reporter in *FFA that the &yrian occupation received K*A,AAA
per /ilo"ra, o 'e/aa heroin# With the valley producin" over 9A,AAA pounds a year, that !as
a lot o ,oney#
'e/aa also 2eca,e a center or processin" Colu,2ian cartel cocaine for ree&port to 3#ropean
mar)ets$
In 19BB, two +yrians arrested with large "#antities of heroin and co)e in %ilan IItalyJ claimed to be
wor)ing for a +yrian colonel in 7e)aa$ Prior to 'esert +torm, +yria!s president 2afe; (ssad and
Ira"!s +addam 2#ssein were rival factions in the (rab nationalist 7a!ath Party$ +yria was the only
(rab nation to bac) Iran in the long and br#tal war against Ira" in the 19B6!s$ +o when President
@eorge 7#sh invited +yria to 0oin the (rab coalition against +addam after Ira"!s invasion of C#wait,
(ssad accepted$
(fter 'esert +torm, (ssad closed ran)s with the hite 2o#se and even softened his stand against
Israel$ President 7#sh and +ecretary of +tate <ames 7a)er peddled a postwar peace plan for the
region and +yria and Israel were enco#raged to recogni;e each others! Lebanese occ#pation ;ones$
Dnder a 1996 accord, Christians and %#slims were finally granted e"#al representation, officially
bringing the civil war to an end$ ( new +yriabac)ed %#slimled government came to power$ Under
the accord, &yria ,aintained control o the 'e/aa 7alley# %,on" the areas still under &yrian
control !ere the notorious dru" ports north o 'eirut#
2igh Times maintained that there were long standing bac)channel relations between ashington
'$C$ and 'amasc#s$ (ccording to a 19BK Pentagon memo lea)ed to the Chicago paper, In These
Times, Lt$ Col$ Oliver .orth was personally notified that +yrian intelligence in Lebanon was
willing to negotiate with the hite 2o#se for release of the hostages held by Lebanese terrorists$
The ashington <ewish ee) reported that 7#sh himself had made secret visits to 'amasc#s for
hostage negotiations$ 7#t there were other reasons for the D$+$ to be in Lebanon$ In 19BB, when Pan
(m ,light 16? e&ploded over +cotland, Pan (m hired the private investigative firm of Interfor to
loo) into the bombing$ The owner, <#val (viv, was reportedly a former %ossad agent$
Interfor maintained that the +yrianbac)ed Pop#lar ,ront for the Liberation of Palestine@eneral
Command 8P,LP@C9 was behind the bombing$ The P,LP@C had been able to get their bomb on
board the KAK beca#se the li"ht !as part o a heroin s,u""lin" route run 2y a dru" traic/in"
rin" connected to the &yrian re"i,e and protected 2y 2oth the U#&# DE% and the CI%$
Interfor claimed the ring was overseen by +yrian )ingpin %on;er (lCassar often )nown as the
world!s biggest arms dealer$ The CI% !as protectin" the %l=assar operation 2ecause he !as
cooperatin" !ith eorts to ree U#&# hosta"es in Le2anon$
4eporter 7ill einberg added that /the CI( and '3( had apparently both instr#cted @ermany!s
internal intelligence agency, the 7C(, to allow certain s#itcases to pass #ninspected onto D+bo#nd
flights at the ,ran)fort airport, where ,light 16? originated$/
(pparently, #n)nown to anyone e&cept the P,LP@C and (lCassar, a suitcase !hich !as supposed
to 2e ull o the usual heroin !as covertly su2stituted !ith a suitcase ull o e5plosives$
( London Times news article, dated <#ly 55, 1991, entitled, /D+ 'r#gs +ting @ave Pan (m 7omber
Cover,/ noted that the DE% ad,itted that the protection pro"ra, had e5isted# The e&planation
for this operation, which was codenamed Cho#rah, was provided by Ronald Carey, actin"
assistant ad,inistrator o the operational division o the DE%# In a D$+$ government
s#bmission, dated %arch 56, 1991, Carey said the dru" operation !as a "controlled delivery#"
%ccordin" to Carey, in a controlled delivery, a la! enorce,ent a"ency per,its and
,onitors ship,ents o contra2and, includin" dru"s, to ,ove ro, a source or transit location
to its intended destination# Use o this techniBue is so,eti,es essential to ena2le la!
enorce,ent a"encies to identiy and arrest hi"hran/in" ,e,2ers o traic/in"
or"ani1ations, rather than si,ply arrest lo! level couriers$
Pan (m arg#ed in co#rt that it had been the pawn of an international intelligence operation, b#t still
lost the case and was forced into ban)r#ptcy$
In 1996, when the hite 2o#se started to woo +yria as a partner in the (llied coalition, blame for
the Pan (m bombing s#ddenly shifted from (ssad!s +yria to Haddafi!s Libya, and that is pretty
m#ch where it stands today$
(ean!hile, %l=assar !as alle"ed to have provided Oliver North !ith dru" proits to purchase
ar,s or the Nicara"uan Contras# The D$+$ Tower Commission probe into Irangate revealed that
(lCassar had been paid P1$5 million by Oliver .orth!s coconspirator @eneral 4ichard +ecord to
move weapons from Israel to the Contras$
In her boo) /October +#rprise,/ or,er Rea"an White $ouse aide 'ar2ara $one""er alle"ed
that %l=assar3s heroin s,u""lin" net!or/ in Italy !as used to launder N%TO ar,s stoc/s or
diversion to Iran !ith the help o corrupt Italian intelli"ence oicials lin)ed to the secretive
fascist %asonic lodge, P5$
It is note!orthy that %l=assar !as reported to hold lar"e tracts o land in the 'e/aa 7alley#
The )4L)6C also has ca,ps in the 'e/aa !hich !ere the tar"et o Israeli air stri/es in *FGF#
QQQQQQ
The D$+$ government!s presence in Lebanon is not to be ta)en lightly according to Lester Coleman,
a selfemployed freelance writer, editor and sec#rity cons#ltant who once moonlighted as a 'I(
8'efense Intelligence (gency9 covert intelligence officer when he was called to serve$ Coleman,
age AK, told the London Times that for si& years he wor)ed as an intelligence officer with the secret
#nit, %iddle 3ast Collection 16 8%C169 in Cypr#s, r#nning a networ) of agents in 7eir#t whose
mission was to find (merican hostages held by e&tremists$
Coleman was paid in travelers chec)s sent from the L#&embo#rg branch of the now collapsed 7an)
of Credit and Commerce International 87CCI9$ Two senior %C16 members, %athew Cevin @annon
and %a0or Charles 'ennis %cCee, had been on Pan(m flight 16? and had 0#st ret#rned from a
mission in 7eir#t$
Cole,an e5plained that the DE%, !ith the narcotics sBuad o the Cypriot national police, the
6er,an '=% police and 'ritish custo,s, ran a "dru" stin" operation" throu"h Cyprus and
airports in Europe, includin" 4ran/urt#
The operation involved deliverin" heroin ro, the 'e/aa 7alley in Le2anon to the United
&tatesD the operation !as codena,ed "=hourah#" Cole,an ,aintained that )an %, 4li"ht
*A: !as 2ein" used 2y the DE% as a "controlled delivery" li"ht#
(fter the e&plosion, the 7eir#t end of %C16 had obvio#sly been /blown$/ There were five )ey
members of the %C16 cell in Cypr#s and 7eir#t, one of whom was Lester Coleman$ (nother was
erner Tony %s,ar, a @erman Lebanese, who was )illed in a bomb e&plosion at his office in east
7eir#t on %ay 56, 19BB$
(nother member of %C16 was Charlie ,re;eli, a Lebanese army officer, who was shot dead at his
home in east 7eir#t in .ovember 19B9$ hen (smar was )illed, the 'I( ordered Coleman home$
Danny Casolaro had contacted Cole,an in &!eden on %u"ust :, *FF*, seven days 2eore his
death in (artins2ur", West 7ir"nia# They tal)ed abo#t the sale of the P4O%I+3 software by the
D$+$ @overnment to foreign governments, the 7an) of Credit and Commerce International 87CCI9,
and the IranContra scandal#
(fter Coleman learned of 'anny!s death on (#g#st 16th, 1991, he provided Inslaw president 7ill
2amilton with an affidavit in October 1991$ That aidavit read as ollo!s:
/(ffidavit of Lester C$ Coleman, being d#ly sworn, do hereby state as follows=
/819 I am c#rrently selfemployed as a freelance writer, editor, and sec#rity cons#ltant$ I am a Dnited
+tates citi;en and am temporarily o#tside of the Dnited +tates$
/859 In .ovember 19BA, the 'efense Intelligence (gency 8'I(9 offered me a position in h#man
intelligence operations in the %iddle 3ast$ I was raised in the %iddle 3ast, where I lived in Iran,
Libya and +a#di (rabia$ I spea) three dialects of (rabic and some ,arsi$ I accepted the position and
received training from the 'I($ I was assigned to a %iddle 3ast intelligence #nit$
/8?9 7etween ,ebr#ary and +eptember 19BK, I was seconded by 'I( to the 'r#g 3nforcement
(dministration 8'3(9 in .icosia, Cypr#s, reporting to the '3( Co#ntry (ttache, %ichael T$
2#rley$
/8A9 (fter a cover assignment in the Dnited +tates, I was again seconded to the '3( in .icosia,
Cypr#s, in early 19BB$
/8E9 '#ring (pril and %ay 19BB, I wor)ed in the office of 3#ramae Trading Company, Ltd$ in
.icosia, Cypr#s, a '3( proprietary company$ On or abo#t %ay 59, 19BB, beca#se of my concern
abo#t poor sec#rity in the '3( operation in Cypr#s, I ret#rned to the Dnited +tates, having
previo#sly obtained the conc#rrence of 'I($
"+H- Durin" ,y t!o stints as a DI% covert intelli"ence oicer seconded to the DE% in Nicosia,
Cyprus, I 2eca,e a!are o the act that DE% !as usin" its proprietary co,pany, Eura,ae
Tradin" Co,pany, Ltd# to sell co,puter sot!are called )RO(I&E or )RO(I& to the dru"
a2use control a"encies o various countries in the (iddle East, includin" Cyprus, )a/istan,
&yria, =u!ait and Tur/ey#
"+I- I personally !itnessed the unpac/in" at the Nicosia, Cyprus, )olice 4orce Narcotics
&Buad o 2o5es containin" reels o co,puter tapes and co,puter hard!are# The 2o5es 2ore
the na,e and red lo"o o a Canadian corporation !ith the !ords @)RO(I&E3 or @)RO(I&3
and @Ltd3 in the co,pany na,e#
"+G- The DE% o20ective in inducin" the i,ple,entation o this co,puteri1ed )RO(I&>E?
syste, in the dru" a2use control a"encies o the (iddle East countries !as to au",ent the
dru" control resources availa2le to the United &tates 6overn,ent 2y ,a/in" it possi2le or
the United &tates 6overn,ent to access sensitive dru" control la! enorce,ent and
intelli"ence iles o these (iddle East "overn,ents#
/899 It is also my #nderstanding that thirdparty f#nds were generally made available for the
p#rchase of these comp#ter software and hardware systems$ One thirdparty f#nding so#rce was the
Dnited .ations ,#nd for 'r#g (b#se Control in -ienna, (#stria$
/8169 (s '3( Co#ntry (ttache for Cypr#s, %ichael T$ 2#rley had overall responsibility for both
the 3#ramae Trading Company, Ltd$ and its initiative to sell P4O%I+I3J comp#ter systems to
%iddle 3ast co#ntries for dr#g ab#se control$
/8119 In 1996, '3( reassigned 2#rley to a '3( intelligence position in ashington +tate$
"+*9- I 2eca,e a!are in *FF* that (ichael Riconosciuto, /no!n to ,e as a lon"ti,e CI%
asset, was arrested in ashington +tate by '3( for the man#fact#ring of illegal chemical dr#gs$ I
had also become aware of the fact that 4iconosci#to had made a sworn statement, prior to his arrest,
abo#t his participation in a covert D$+$ intelligence initiative to sell Inslaw!s P4O%I+3 software to
foreign governments$
/81?9 In light of 2#rley!s personal involvement in the D$+$ @overnment!s covert intelligence
initiative to sell P4O%I+I3J software to foreign governments and his reassignment to a '3(
intelligence position in ashington +tate in advance of the '3(!s arrest of 4iconosci#to, the arrest
of 4iconosci#to sho#ld be regarded as s#spect$ I do not believe that 2#rley!s posting to a dr#g
intelligence position in ashington +tate in advance of 4iconosci#to!s arrest on dr#g charges is
merely coincidental$ 4ather, the probability is that 2#rley was reassigned to ashington +tate to
man#fact#re a case against 4iconosci#to in order to prevent 4iconosci#to from becoming a credible
witness abo#t the D$+$ @overnment!s covert sale of the P4O%I+ software to foreign governments$
"+*;- The investi"ative 0ournalist Danny Casolaro contacted ,e in Europe on %u"ust :, *FF*#
(r# Casolaro had leads and hard inor,ation a2out thin"s that I /no! a2out, includin"
Depart,ent o 8ustice "roups operatin" overseas, the sale of P4O%I+I3J software by the D$+$
@overnment to foreign governments, the 7an) of Credit and Commerce International 87CCI9, and
the IranContra scandal$ I su2seBuently learned o (r# Casolaro3s death in (artins2ur", West
7ir"inia, one !ee/ later, on %u"ust *A, *FF*# I contacted Inslaw in October 1991, after learning
abo#t %r$ Casolaro!s death #nder s#spicio#s circ#mstances$/
C$%)TER F
-illage -oice maga;ine ran an article entitled, /The Last 'ays of 'anny Casolaro,/ by <ames
4idgeway and 'o#g -a#ghan on October 1E, 1991 which gave a brief profile of %ichael
4iconosci#to!s bac)gro#nd=
/The AAyearold 4iconosci#to is to p#t it mildly a colorf#l character, wilder than anything in NThe
,alcon and the +nowman$! 2e was a gifted child$ hen he was 0#st 16 years old, %ichael wired his
parents! neighborhood with a wor)ing, private telephone system that #nderc#t %a 7ellL in the eighth
grade, he won a science fair with a model for a threedimensional sonar system$ 7y the time he was
a teenager, he had won so many science fairs with e&hibits of laser technology that he was invited to
be a s#mmer research assistant at +tanford!s IDniversityJ prestigio#s Cooper -aper Laser
Laboratory$ 'r$ (rth#r +chalow, a .obel la#reate, remembered him= N>o# don!t forget a 16yearold
yo#ngster who shows #p with his own argon laser,! he told Casolaro$/
GGGGGG
7obby 4iconosci#to lived with %ichael 4iconosci#to at the time of his arrest in ashington state$
Immediately #pon learning of his arrest, she had fled to California with her fo#r children, the
yo#ngest of which, 3li;abeth, had been fathered by %ichael$
7obby was well sit#ated in an e&cl#sive s#ite at the 3mbassy +#ites 2otel in Orange Co#nty,
California$ 2er s#ite contained a living room and bar overloo)ing l#sh indoor tropical gardens and
water fo#ntains, marble wal)ways over bridgecovered ponds and a ga;ebo where free brea)fasts
were coo)ed and served to order$
ithin the room, she had at her disposal office e"#ipment, phones in every room, answering
machines, room service and anything else she needed for herself and her children$ Patric) %oriarty,
%arshall 4iconosci#to!s b#siness partner of A6 years, was paying the bills$
(oriarty and the Riconosciutos, ather and son, had once o!ned $ercules Research
Corporation to"ether in $ercules, Caliornia# (n old Contra Costa Co#nty newspaper article,
dating bac) to (pril, 19B1, gave the story of 2erc#les$ The s#bheading of the article pretty m#ch
said it all, /'evice Co#ld %a)e 2erc#les a +ilicon -alley$/
In 19B1, 2erc#les had developed a small electronic power s#pply the si;e of a tiss#e bo&, designed
to specifically feed ?6,666 volts of electricity to another device, a %3TC 8%od#lar 3nergy Transfer
Cataly;er9 #nit, that wo#ld c#t the heating and cooling time in food processing and of ma)ing glass,
metal and other prod#cts by A6 percent$
The %3TC #nit, patented by Interprobe of Chicago, wor)ed by electrostatically e&citing air
molec#les by moving them thro#gh a charged field$ This removed a bo#ndary layer of molec#les
that inhibited the e&change of thermal energy$ 2erc#les! highvoltage power s#pply was essential to
the application of Interprobe!s %3TC #nit, so both companies were in the process of wor)ing o#t a
merger in order to mar)et both technologies as a complete system$
(dmiral 2enry 4an)in, vice president of Interprobe, was a longtime family friend, and was very
enth#iastic abo#t incorporating the 2erc#les power pac) with Interprobe!s high voltage electrostatic
technology$
Patric) %oriarty and %arshall 4iconosci#to had f#nded research for 1E years and spent abo#t P1
million of their own money on the pro0ect$
7y 19B?, things were not loo)ing so good for Patric) %oriarty$ The Los (ngeles Times newspaper
reported in a series of articles that /firewor)s magnate $ Patric) %oriarty, his b#siness and
associates spent nearly half a million dollars in the last three years to infl#ence government
decisions thro#gho#t California$/
%oriarty!s relationships with several )ey state legislators and his campaign contrib#tions to elected
officials from (naheim to +acramento had made him a powerf#l force in state and local politics$
2is association with the notorio#s 4obert ,errante, head of Consolidated +avings and Loan which
failed in 19BE, and who was the s#b0ect of a disorgani;ed, onagain offagain ,7I investigation, was
written #p in the boo), /Inside <ob,/ by 8%ary ,ric)*9$
Patric) %oriarty was described as /the man#fact#rer of 4ed 'evil firewor)s, who fo#nded the 7an)
of Irvine$ The ban) failed in 19BA, the victim of fra#d and mismanagement, according to
reg#lators$/ In 19BE, %oriarty pleaded g#ilty to mail fra#d in a case that became the biggest
political scandal in California in ?6 years$ Over 16 prominent politicians, incl#ding one state
senator, were indicted for ta)ing bribes from %oriarty$
Tho#gh I!d spo)en with her on the phone n#mero#s times, I first met 7obby 4iconosci#to
facetoface on <an#ary 1Eth, 1995$ On the day I visited her hotel s#ite, I ha#led my %ita copy
machine on a cart #p to her room and we tal)ed and made copies of doc#ments all morning$ 7obby
was yo#ng, bo&om and attractive in a nat#ral, mother earth sort of way$ 2er long blond hair h#ng
loosely aro#nd her sho#lders, she wore no ma)e#p, and her nose and mo#th had an impish #pt#rn
that made her appear to be smiling even when she was not$
e became friends as the day progressed$ 7obby confided that some of the more sensitive material
was stored at %ichael!s hidden trailer in Trona, California$
hile wor)ing at ac)enh#t, %ichael had anticipated a f#t#re need to have a hiding place for
himself and his files in the event that things got o#t of control$ 7obby, who had met %ichael in
ashington state after he left ac)enh#t, had been instr#cted by %ichael to stay away from the
trailer in case she was being s#rveillanced$
The files and comp#ter e"#ipment stored there were %ichael!s last ace in the hole$ .evertheless,
7obby was fr#strated by the slow progress of %ichael!s co#rt defense, by 4$<$!s lac) of response to
%ichael!s re"#est for itness Protection 1 and she had been barraged by reporters who wanted
doc#mented proof of %ichael!s statements$
I offered to drive her o#t to Trona, near 'eath -alley, to retrieve %ichael!s files and #ltimately, she
ac"#iesced$ e arrived at the isolated trailer at d#s) and began sorting thro#gh doc#ments that
co#ld s#bstantiate %ichael!s claim that he wor)ed for the government$
The electricity had been sh#t off and as it became dar), we were forced to #se flashlights$ 7obby
was terrified that we might get ca#ght in that @odforsa)en place$ The children were cold and tired,
and from sheer e&ha#stion, she finally offered to t#rn all the bo&es and doc#ments over to me to
ma)e copies at home$
e threw everything helter s)elter into large plastic trash bags, d#mped the bags into my Chevy
van, and "#ic)ly headed bac) to civili;ation$
It is noteworthy that before we left, 7obby pointed the flashlight towards another, smaller trailer
sit#ated on a )noll overloo)ing the road, which she claimed contained %ichael!s hidden comp#ter
e"#ipment$
It was several wee)s before %ichael learned that 7obby had t#rned the doc#ments over to me$ +he
never told him, nor did I$ It was thro#gh <onathan Littman, a +an ,rancisco Chronicle reporter
whom I had confided in, that 4iconosci#to learned of o#r secret$
Dpon arriving home from my trip to the desert, I had &ero&ed ro#ndthecloc) for five days with help
from tr#sted friends$ The doc#ments corroborated everything %ichael had related over the phone,
and more$
It was an e&citing time$ 7o&es and bo&es of doc#ments provided me for the first time with a
window into the CI( corporate str#ct#re, arms deals, dr#g operations, money la#ndering, biological
technology, all the connecting tentacles of 'anny Casolaro!s /Octop#s$/
(fter ma)ing copies, I s"#ee;ed the originals into eight large pac)ing bo&es, sealed them tightly,
and sent them bac) to 7obby 4iconosci#to, via a friend, who gave them to %ichael!s father,
%arshall 4iconosci#to$
I later learned %arshall allegedly shipped them to Ian +t#art +piro for safe)eeping$ It was not #ntil
(pril, 199?, that I learned what became of +piro and the doc#ments$
(n (ssociated Press news story entitled, /'eaths Lin)ed to +py .etwor),/ p#blished in the %erced
+#n +tar newspaper, o#tlined the death of Ian &tuart &piro, A6, who was fo#nd dead of cyanide
poisoning in the (n;a7orrego desert on .ovember B, 1995, one wee) after his wife and children
were fo#nd shot to death in their 4ancho +anta ,e home$
The news story, originating from the Oceanside 7lade Citi;en, noted that /docu,ents and U#&#
intelli"ence sources i,plicated &piro in the IranContra ar,sorhosta"es aair and an alle"ed
8ustice Depart,ent conspiracy to pirate sot!are ro, a private co,pany and sell it to
orei"n intelli"ence a"encies#"
&piro3s na,e also appeared in Lt# Col# Oliver North3s personal note2oo/s docu,entin" the
IranContra aair, accordin" to the National &ecurity %rchives in Washin"ton D#C#$
4or,er hosta"e David 8aco2sen told the 'ladeCiti1en shortly ater &piro3s death that &piro
helped ne"otiate the release o hosta"es in the (iddle East#
(fter obtaining a copy of a follow#p 7ladeCiti;en article dated <#ne ?, 199?, entitled, /+piro
Probers ant to Tal) to .orth/ by ade 7ooth, +tacy ,in; and %ichael illiams, I learned that Ian
&piro lived in 'eirut, Le2anon durin" the *FIA3s and *FGA3s !here he ",ade contacts !ith
Le2anese reli"ious leaders and the Isla,ic 8ihad#"
6re" Muarton, &piro3s 2rotherinla!, told reporters at the 'ladeCiti1en that &piro ,aintained
co,,unication !ith Le2anese 2usiness associates until the ti,e o his death, b#t investigating
officers had possession of +piro!s phone bills, and as of this writing, they had not released them$
+an 'iego sheriff!s Capt$ <im %armac) said detectives were investigating allegations by &piro3s
relatives that his ile ca2inets and 2usiness papers !ere ,issin"#
The wee) of the +piro family!s death, 4obert Corson, a b#siness associate of +piro!s indicted in a
savings and loan scam, was fo#nd dead in an 3l Paso, Te&as, motel room$ Corson, !ho reportedly
!or/ed or the CI%, died o a heart attac/, oicials said# The 'ladeCiti1en reported that
Corson once carried ,oney to &outh %,erica in a deal to deliver covert !eapons# Corson also
alle"edly associated !ith Caliornia investor Wayne Reeder !ho !as seen at a
Wac/enhutJContra ,eetin" in Riverside county 8+ee Chapter 169$
The newspaper article went on to say that %lan (ichael (ay, age E6, Ia former .orthern
California field director in 4ichard .i&on!s presidential campaign and attorney for .i&on!s brothers
'onald and 3dwardJ was fo#nd dead in his +an ,rancisco home on <#ne 19, 1991, fo#r days after a
newspaper story in the .apa +entinel o#tlined his role in an alleged plot by 4ep#blican Party
officials to bribe Iranian officials to delay the release of D$+$ hostages #ntil after President 4eagan!s
ina#g#ration$
Immediately after %ay!s death, Ray,ond Lavas, Ted @#nderson!s former forensic!s e&pert, 8and a
former protege of 4obert %ahe# according to %ichael 4iconoci#to9 wrote a letter to one of
%ichael!s friends, e&pressing his professional opinion abo#t the death of %ichael %ay$ ( copy of
that letter was fa&ed to me and the following e&cerpts "#ic)ly capt#red my attention=
/$$$ I don!t #nderstand why it!s going to ta)e two wee)s to determine %ay!s ca#se of death$ 'id yo#
)now that certain chemical assassination methods will have been evaporated o#t of the body by that
time*
/Then, the ca#se of death wo#ld be r#led as nat#ral, since the chemical agents are the primary ca#se
that res#lt in a secondary action s#ch as heart fail#re, )idney or liver damage, etc$
/+ome e&amples of these agents incl#de 7F5, 4icin, Tropodoto&in, shellfish to&ia and a variety of
methlamine based ne#roto&insthat affect the central nervo#s system and ca#se fail#re of one or
more organs in the h#man body$
/+ome, if not most of these to&ins are solvent based I'%+OJ and may be introd#ced in min#te
"#antities thro#gh the s)in$ Their effect ImayJ vary and some to&ins ta)e wee)s to months to ta)e
effect$ Others ta)e moments to damage the nervo#s system, then evaporate within ho#rs$
/Dnless the body is immediately refrigerated, the to&ins are "#ic)ly evaporated, leaving only one or
two parts per million in "#antity$ Dnless there are s#spicio#s circ#mstances s#rro#nding the death, a
trained forensic e&pert wo#ld never detect any traces of the to&in$
/+o there yo# have it$ I%ichaelJ %ay is dead and they are dragging their asses to find o#t howO
hat is ne&t* ( statement that %ay died of nat#ral ca#ses* Let me predict this now $$$ and we!ll see$
4egards, 4ay$/
%ichael %ay also apparently attended briefings connected with Lawrence Livermore Labs in
California according to an official listing of Lawrence Livermore employees at a /7riefings and
'isc#ssions/ doc#ment obtained from 4iconosci#to!s files$
The doc#ment, stamped, /Official Dse Only,/ listed 3dward Teller along with nine other names,
incl#ding %ichael %ay, #nder the heading /Lawrence Livermore Laboratory$/ Other headings with
names listed #nderneath incl#ded the 'epartment of 3nergy, 'epartment of +tate, 'efense .#clear
(gency and .aval 4esearch Laboratory$ There were no other pages accompanying the doc#ment,
so it was impossible to determine from what man#al it came from$
%ay!s name also popped #p in a letter %ichael 4iconosci#to wrote to 'r$ <ohn Phillip .ichols at the
Caba;on Indian reservation when he was being screened for sec#rity clearances to wor) on the
Caba;on:ac)enh#t 0oint vent#re$
The letter foc#sed primarily on %l $ol2ert, an Israeli intelli"ence oicer !ho alle"edly recruited
Riconosciuto into the CI%, and %ay!s name was mentioned only once, in connection with
members of /The Company$/ That one sentence read as follows= /7en Cal)a!s relationship with
2olbert and N%ay! will give the proper a#thorities the necessary a#spices to come in and swiftly
clean it IThe CompanyJ #p$/
Other portions of the letter gave a history of 4iconosci#to!s e&perience with (l 2olbert 83&cerpts9=
/ $$$ %y problems stemmed from my association with (l C$ 2olbert$ I first met 2olbert when I was
still in high school and I was led to believe that he was an N#nofficial! representative of the Israeli
government$ I was f#rther led to believe that his interests were not contrary to those of the Dnited
+tates$ It was not #ntil <#ly of 19B1 that I learned the tr#th abo#t 2olbert$ It came directly from him
to me personally in what I will call a confrontational sit#ation$
/(#g#st of 19B1 was when I first bro#ght 2olbert to yo#r I'r$ <ohn .icholsJ attention$ (t that time,
I still did not )now m#ch and I was still in a sort of state of shoc) from my Nnew awareness! of
2olbert$ I was in deep with this g#y and so was )aul >(orasca?#
/(t first Pa#l tho#ght that I was off base and overreacting and then by degrees he started to come
aro#nd$ %#ch of the incredible acco#nt of Pa#l!s doings +,oney transers, "e,s, !eapons, dru"s-
were the res#lt of his relationship to 7#rt and <ensen$ 7#rt, <ensen and Cal)a all met Pa#l thro#gh
his brother <oe$ I was the one who introd#ced (l 2olbert to Pa#l, and Pa#l was the one who
introd#ced me to 7#rt, <ensen and Cal)a$ This was in early 196K$
/I was introd#ced to I(lJ 2olbert thro#gh the +tanford crowd at the home of Iname withheldJ in
Portola -alley, California$ Interesting eno#gh, Iname withheldJ is a former +tate 'epartment
employee $$$/
/ $$$ The reali;ation of who and what 2olbert is, and Pa#l!s death, have ta)en me some time to ad0#st
to$ (nd that re"#ired professional help$ I now have a clear idea and good perspective on what has
really happened in my life$
/I am in awe of 2olbert and his gro#p!s power IThe CompanyJ$ '#ring the last year, I have forced
this str#ct#re to rear its #gly head in many different times and places, and in ways that can!t be
covered #p$ I have also spread far and wide what )nowledge I have with the intent to first protect
others involved and secondly to chisel the story in stone$
/here it all stands now is that no matter who the gro#p attempts to silence or what r#se they
attempt to perpetrate, the tr#th cannot be destroyed$ This is now in the hands of a competent
attorney$ %y direct involvement is finished e&cept to be available to answer "#estions$
" ### I eel that $ol2ert and his "roup represent a current national security ni"ht,are to this
country# I feel that I have been e&tricated from the hold of this gro#p$ 7#t I also feel that the
destr#ction by legal means of this gro#p ran)s in importance with my scientific and engineering
s)ills to the overall pict#re$
/7en Cal)a!s relationship with 2olbert and %ay will give the proper a#thorities the necessary
a#spices to come in and swiftly clean it #p$ I wo#ld now li)e to start o#t where we sho#ld have been
a year ago$ The first point I will start with is a recap of o#r visit to Pic)itinny (rsenal $$$/
It is note!orthy that t!o o the people ,entioned in the a2ove letter are no! dead: )aul
(orasca and (ichael (ay#
The bi;arre circ#mstances of %orasa!s death are detailed in the ne&t few pages$ 7en Cal)a of The
Company, is now serving time in prison for having 966 po#nds of methamphetamine in his
possession at time of arrest$
Thro#gh one of %ichael!s contacts, I managed to locate the c#rrent 819919 whereabo#ts of (l
2olbert and confirm his identity$ ( letter written on /+olomon Investigations/ letterhead, dated <#ne
1?, 1991, to a client re"#esting payment for the services of 2olbert read as follows= 83&cerpted9 " ###
I enlisted the services o ,y electronic counter,easures e5pert, %#C# $ol2ert, or an
i,,ediate survey and s!eep o the pre,ises# (r# $ol2ert is hi"hly re"arded as the 2est
electronics ,an in the >&an 4rancisco? 'ay %rea and has recently !or/ed !ith Israeli
intelli"ence services in the ield o electronic counter,easures# 2e agreed to ta)e on this 0ob$ I
have enclosed a copy of %r$ 2olbert!s fa&ed report $$$/
The mystery of (l 2olbert was f#rther #ncovered in a 19B? transcript in which %ichael stated,
/(fter Pa#l!s I%orascaJ death, 2olbert admitted to me that he was a +oviet bac)ed agent, and they
had a home, or he had a home for me, and I co#ld be treated li)e royalty, and he reiterated that offer
in the latest meeting, and he said, N2e was prepared to deliver some fiveh#ndredtho#sand dollars
cash to me #s a show of good faith $$$/
The transcript, ori"inatin" ro, a series o tape recorded intervie!s 2et!een (ichael
Riconosciuto, Ted 6underson and Ro2ert 'ooth Nichols at Nichols3 "AAI" apart,ent in
(arina Del Ray, provided a !indo! into the entire dru" scene in Caliornia ro, the early
*FHA3s throu"h the *FGA3s, ,ostly relatin" to ,etha,pheta,ine operations in the 'ay %rea# It
had been typed by 3llen .ichols, 4obert!s wife$
Riconosciuto3s relationship !ith Ted 6underson dated 2ac/ at least as ar as *FG9# (ichael
and Nichols dated 2ac/ to *FHI# In readin" the transcript, it appeared that 6underson and
Nichols !ere intervie!in" Riconosciuto or recruit,ent into a dru"Jstin" operation#
Riconosciuto later veriied that he !as, in act, 2ein" recruited into the overseas Le2anon
dru" operation 2y 6underson and Nichols 2ecause o his +Riconosciuto3s- undercover
e5perience in the dru" trade#
It is note!orthy that %l $ol2ert, the Israeli intelli"ence a"ent !ho ori"inally recruited
(ichael into the CI%, is ,entioned e5tensively throu"hout the I*pa"e transcript#
4iconosci#to!s relationship with 2olbert had lasted from 1966 to 19B1, a span of fifteen years$ %ost
of that time had been devoted to comple& dr#g activities in California$ In one passage, 4iconosci#to
stated that /7en Cal)a was one of I(lJ 2olbert!s lie#tenants$ The other lie#tenant with Cal)a was
Charlie einberg, who set #p the -orte& Chemical Company in 7er)eley, California for 2olbert$/
2olbert was also interested in technology$ /I really confided in him$ I was constantly steering him to
vario#s people in the +ilicon -alley, yo# )now, for re"#ests that he made which were very
sophisticated technical re"#ests$/
In the transcript, Ted @#nderson as)ed %ichael, /2olbert had a technical mind for that sort of
thing*/
%ichael responded, /(bsol#telyO I2e hadJ a firm grasp of physics, mathematics, chemistry, military
hardware $$$/
@#nderson as)ed, /Let!s go bac) to !66 to !B1, yo# were close to him*/
%ichael= /.ot on a reg#lar basis$ 2e wo#ld get in contact with me when he needed cons#ltation in
certain areas$ I made some good money$ I designed comm#nications e"#ipment for them$ I did a lot
of software development $$$/
Ted= /(nd then he gave it to the Israelis*/
%i)e= />es$/
Ted= /(nd he admitted this*/
%i)e= /Oh yeah, none of it was really classified$ I did software for the analysis of radar change data$
It was based on mathematical models that the 'epartment of 'efense wasn!t #sing yo# )now, my
approach was new and different from theirs, b#t it wasn!t connected with any of their pro0ects, so
technically it wasn!t classified$/
%ichael developed other technology along the way and s#bse"#ently attracted the attention of 'r$
<ohn Phillip .ichols at ac)enh#t:Caba;on who wanted his services$ 7#t %ichael!s association
with (l 2olbert was hindering %ichael!s sec#rity clearances$ Thro#gh the screening process and 'r$
<ohn .ichols, %ichael had learned more abo#t (l 2olbert$
Ted= /ell, how co#ld he I2olbertJ be a +oviet agent and an Israeli agent*/
%i)e= />o#r g#ess is as good as mine$ I tal)ed to %a0or @eneral Peratt on that s#b0ect last %ay and
he said, N>o# don!t #nderstand the ways of the world$! 4egarding (l 2olbert, I said, NThat man has
done more damage to my generation and my co#ntry Idr#gsJ 2ow can yo# people say that yo#!re
friends of the Dnited +tates, when yo# send #s a g#y li)e that*/
%ichael contin#ed $$$/>o# )now, 2olbert came to the Dnited +tates and he went to wor) for the
Treas#ry 'epartment o#t of Philadelphia and $$$/
Ted interr#pted$ /In what way* (s an agent*/
%i)e= /I don!t )now what the relationship was$ The Treas#ry 'epartment wo#ldn!t tell me$ They
wo#ldn!t comment at all e&cept to ac)nowledge that, N>es, he was involved at very high levels,
giving special training$!
/ $$$ 2olbert ta#ght co#rses in interrogation techni"#es$ 2e ta#ght to#ch)ill techni"#es yo# )now,
with the th#mbs on the temples and vario#s scare areas li)e that$ 2e moved aro#nd to a lot of
different agencies$ 2e got involved with the ,7I, and he was involved with the 'r#g 3nforcement
people $$$/
Ted= /2e indicated to yo# for fifteen years IthatJ he was with the Israelis*/
%i)e= /Israelis$ >es$/
Ted= /(nd then yo# reali;ed thro#gh 'r$ .ichols that he was a +oviet*/
4iconosci#to e&plained that he tho#ght it was <ohn (mmarell at ac)enh#t who had /;eroed in on
2olbert$/
@#nderson contin#ed to press 4iconosci#to abo#t 2olbert being a do#ble agent$ %ichael
responded= /ell, he was with the +oviets, b#t he was also with the Israelis$ 2olbert definitely is
connected with Israeli intelligence$ I mean there!s no ifs, ands, b#ts, or maybes $$$ 2e was decorated
in combat for them$/
4iconosci#to f#rther reco#nted a visit to Israel in (pril 19B5$ 2e had met a man 8name #nspecified9
who was the assistant +ecretary of 'efense of Israel for a n#mber of years and was in charge of
defense prod#ction for the Israeli government$ This man was a friend of (riel +haron and he had
introd#ced 4iconosci#to to +haron$ It was thro#gh this man and a man named /@eneral Peratt,/ that
4iconosci#to confirmed 2olbert!s position with the Israelis$
/2olbert definitely is one of their boys$ I got an admission o#t of @eneral Peratt that 2olbert was
f#nny, that he!s a Trots)iite, and they )new abo#t it, and I co#ldn!t #nderstand why they )ept a g#y
li)e that aro#nd* I was told that I 0#st didn!t #nderstand the ways of the worldO/
Ted as)ed, /ho does 2olbert report to*/
%i)e= /<ean Pierre 7oegner$/
(t this point in the transcript, 4obert 7ooth .ichols interceded and provided 7oegner!s address= / $$$
2is address in Paris is 11A Champs 3lysees, Paris B, ,rance$ That goes into my territory $$$/
%i)e added, /<ean Pierre reports directly to Colonel +tefan D;nans)i of the D)raine $$$/ .ichols
noted, /I have strict files on him$/
Ted as)ed, /(nd is he @4D*/
%i)e answered, /.o C@7$/
.ichols added, /(s high as yo# can go $$$/
Ted as)ed, /(nd where is he, in the Cremlin*/
%i)e answered, /.o, he!s in -ienna$/
.ichols inter0ected, / $$$ O#t of +al;berg$ 2e has a home twenty min#tes from +al;berg$ 2is hobby
is boar h#nting$ 2e has abo#t a twenty man contingent$/
@#nderson as)ed, /Is 7oegner a Canadian*/
.ichols responded, /7oegner is ,rench$ 7oegner was involved in the assassination attempt on de
@a#lle$ 7oegner served time$/
Ted= /2e!s C@7*/
.ichols= /Oh yeah, a Colonel$/
Ted= /O)ay, anything else$ (nything more on 2olbert that we sho#ld bring #p*/
4iconosci#to noted that 2olbert was very disappointed that he co#ldn!t /t#rn him/ 84iconosci#to9 in
(#g#st of 19B1$ Ted as)ed %ichael if 2olbert admitted at that time that he was C@7*
%ichael corrected Ted, /@4D, he was @4D$ 2e told me that he was @4D and he bragged that there
were over thirtyfive tho#sand @4D agents active on the .orth (merican continent$ (nd I chec)ed
with <ohn (mmarall and with 4obert ,rye Ie&ec#tives at ac)enh#t CorporationJ and they told me
it was abo#t half that n#mber$
/ $$$ 2e I2olbertJ wanted me to leave the Dnited +tates, thro#gh Canada, and go to Israel$/
4iconosci#to added, />o# )now, he!s to#ched the Central Intelligence (gency, the Treas#ry
'epartment, the +ecret +ervice and vario#s local law enforcement agencies all over the co#ntry $$$/
The abovementioned transcript was mailed by one of three people to the /prosec#tor/ at %ichael
4iconosci#to!s trial in ashington state where it was entered into evidence$
GGGGGG
(t that time, to %ichael!s )nowledge, only 4obert 7ooth .ichols, Peter Fo)os)y and 8onathan
Litt,an, a &an 4rancisco Chronicle reporter, had possession of it$
I s#bse"#ently received a copy of it from 8onathan Litt,an, !ho coincidentally, I learned later,
happened to 2e 'en =al/a3s "cousin" +=al/a 2elon"ed to The Co,pany, accordin" to
Riconosciuto, and had 2een arrested !ith FAA pounds o ,etha,pheta,ine in his possession-#
Littman had obtained the transcript from Peter Fo)os)y, 4obert 7ooth .ichols! partner$
4iconosci#to believed Littman had given the transcript to Cal)a d#ring one his visits with him at
the Pleasanton prison, and Cal)a had sent it on to the prosec#tor at %ichael!s trial$
.ichols later confirmed to me that he 8.ichols9 had indeed interviewed 4iconosci#to with Ted
@#nderson in 19B? and the transcript !as le"iti,ate, tho#gh he wo#ldn!t state the p#rpose of the
interview$
GGGGGG
It is significant that a passage in the 19B? transcript mentioned %ichael %ay as /one of the top
three g#ys in the Lawrence Livermore Laboratory management str#ct#re/ who was associated with
4iconosci#to$
GGGGGG
%ichael and 7obby 4iconosci#to had been comm#nicating with <onathan Littman for months, as
had 'anny Casolaro before his death, and they wanted me to connect with him$ (t that point,
Littman had written a series of indepth articles on the Caba;on Indians and 'r$ <ohn .ichols, and I
hadn!t been interested in tal)ing to him $$$ #ntil he wrote abo#t the death of %ichael!s partner, Pa#l
%orasca$
The article, entitled, /7i;arre %#rders P#;;le Cops,/ p#blished on the front page of the +an
,rancisco Chronicle on 'ecember ?6, 1991, noted that the body of )aul (orasca, ?1, had been
fo#nd by %ichael 4iconosci#to$ %orasca!s arms had been lashed behind his bac) as he was hogtied
with a telephone cord from his c#rled#p legs to his nec)$ Police believed he died when his legs
finally gave o#t and the cord tightened li)e a bowstring, drawing the noose aro#nd his nec) #ntil he
slowly strangled$
7efore his death, %orasca and 4iconosci#to had planned a b#siness vent#re with Caba;on
administrator <ohn Phillip .ichols to develop hightechnology military hardware$ (orasca !as also
descri2ed as a "&an 4rancisco entrepreneur suspected o 2ein" a ,oney launderer involved in
a ,a0or Northern Caliornia dru" rin"#/
Oddly, when 4iconosci#to fo#nd %orasca!s body, he drove E66 miles to the Caba;on reservation
and told <ohn .ichols abo#t the death$ .ichols then called his Los (ngeles attorney, who
telephoned the +an ,rancisco police$
<#st three days after %orasca!s death, (ary Muic/, a 6?yearold school teacher !as shot in the ace
and her purse stolen as she was abo#t to enter ,resno!s (merican legion Post E69, where she was
president of the oman!s (#&iliary$
(t first, police ass#med it to be a ro#tine m#gging m#rder, #ntil it was discovered that her nephe!,
'rian Weiss, who had been living at his a#nt!s ho#se in ,resno, !as a 2usiness associate o
(ichael Riconosciuto3s# 87rian eiss was also mentioned in the abovementioned 19B? /dr#g
transcript/9$
4iconosci#to e&plained to police that he told Pa#l %orasca that he had given %ary H#ic) a card
containing secret 2an/ account code nu,2ers beca#se /she had no connection to any of the
principles and co#ld be tr#sted$/ +he had been instr#cted to give the code n#mbers over the phone
only to Pa#l %orasca or %ichael 4iconosci#to$
It was not #ntil I obtained %ichael 4iconosci#to!s /desert/ files that the above story affected me
personally$ Within one o the 2o5es !as an envelope containin" ei"ht coded co,puter cards
!ith lar"e su,s o ,oney hand!ritten ne5t to the account nu,2ers# One card, containin" ten
account nu,2ers, indicated su,s o up!ards o K:#< ,illion dollars# That was 0#st one card of
eight$
In my ne&t conversation with %ichael 4iconosci#to, I in"#ired of him the /real/ story behind Pa#l
%orasca and %ary H#ic)!s death$ I did not reveal to him that I was in possession of his ban) cards,
b#t referred to the +$,$ Chronicle newspaper story$
%ichael remorsef#lly indicated that he had not, in fact, given any cards to %ary H#ic) as he had
told Pa#l %orasca he did$ %ichael had )ept them 8and obvio#sly hidden them at his desert trailer9$
.evertheless, %orasca believed, and #nder tort#re revealed, that one of the cards was being held by
%ary H#ic) and the rest were stored in a safe deposit bo&$ (s we )now, %ary H#ic) died three days
later$
(fter that conversation I immediately too) the cards to a professional photographer, had close#p
photographs ta)en of them, and ret#rned them in a separate envelope to 7obby 4iconosci#to$ I
never )new what she did with them$
'#ring s#bse"#ent phone conversations, 4iconosci#to often referred to his former partner, Pa#l
%orasca$ '#ring his attempted trade into the ,ederal itness Protection Program, he had made a
statement which ca#ght my attention, and which I later in"#ired abo#t$ hile relating his
bac)gro#nd in the electronics field, he had mentioned that he once wor)ed at Ty,e &hare, Inc#
Ch#c) 3vert, a longtime family friend, had reportedly been one of the fo#nders along with Tom
O!4oar)e$
.oted 4iconosci#to, / $$$ (nd at the time of Pa#l %orosca!s death, the biggest loss I received was a
big bag of bearer shares of original Tyme +hares stoc)$ (nd that was the main reason why Pa#l got
)illed$/
4iconosci#to had stressed that only the ,inCen people wo#ld #nderstand the significance of that$ I
later learned that the comp#ter cards which Pa#l %orasca and %ary H#ic) had died for belonged to
the Ty,e &hares online inancial clearin" house used !orld!ide 2y 2an/in" institutions#
3ssentially, the cards were provided to a s#bscriber or /#ser/ who rented time on the comp#ter for
cond#cting ban)ing transactions$
4iconosci#to chose not to elaborate on his operation at Tyme +hares from a /0ail/ phone,
nevertheless, I was able to decipher that he and )aul (orasca had accessed 2an/ accounts usin"
the co,puter cards in con0unction !ith a "pass!ord" deter,ined 2y the user# (ichael had
created the pass!ords ro, the "pets" na,ed in )hyllis Riconosciuto3s +(ichael3s e5!ie3s-
diary#
2e did, however, randomly disc#ss his bac)gro#nd with Tyme +hares= /I developed the modem,
error trapping ro#tines for Tyme +hare #sed on the original networ)$ I developed the protected
mode memory for the scientific data systems, +'+, +igma K comp#ters$ (nd I developed the capital
P34T, Pert +oftware, which was the ne&t generation of critical path method$ That!s a Programmed
3val#ation 4eview Techni"#e that Tyme +hares, for years, was the leader in$
/(nd then 3lectronic 'ata +ystems bo#ght a license from them, and yo# )now, 3'+!s story is
legendary$ .ow, P4O%I+3 is an o#tgrowth of P34T$ The 2amiltons had a woman programmer
who was selfta#ght and she!s the one, her signat#re is in the code str#ct#res of P4O%I+$ It!s 0#st
li)e her signat#re beca#se she was o#t of the mainstream and did things her own way $$$/
+hortly thereafter, while reviewing 4iconosci#to!s doc#ments, I came across a copy of an obsc#re
statement s#bmitted by 4iconosci#to in 4e2ruary *FG; to the &an 4rancisco 6rand 8ury on the
death o )aul (orasca# It cryptically tied (orasca to Wac/enhut and appeared to have been
transcribed from a tape recorded interview$ The statement in its entirety read as follows=
/I first heard of Phil Porath in 'ecember of 19B1$ <ohn Phillip .ichols ICaba;on administratorJ told
Pa#l %orasca and myself that we needed Phil Porath as a cons#ltant to 4ecovery Technology, Inc$
Porath was represented by <ohn P$ .ichols as being able to smoothly handle metals transactions for
4TI on a large scale$ Phil Porath was one of the contacts that <ohn Phillip .ichols had committed to
arrange for Pa#l as part of o#r deal$ Pa#l %orasca!s body was fo#nd after he failed to contact Porath
for that sched#led meeting in <an#ary 19B5$
/(fter Pa#l!s death, <P. I<ohn Phillip .icholsJ came to me with a re"#est$ 2e as)ed me if I co#ld
recover some of 'en =al/a3s L&D beca#se he had a sale for E lbs$ of it to someone in 4omania$
<ohn Phillip .ichols claimed that this was an a#thori;ed covert intelligence operation and the
proceeds !ould 2e used to purchase 6eor"e Wac/enhut3s yacht, Top &ecret#
/%ilitary electronics e"#ipment to be delivered to +o#th (frica was also to be p#rchased according
to <P. and delivered by the yacht$ I went along with the program beca#se <P. told me that the
@a"ency3 !as involved throu"h W&I# I did some chec)ing on my own and became s#spicio#s of
<P.$ Then <P. met with myself and Raoul %rana of Central Carribean 4esearch, Inc$
/(t this meeting, the details were plainly disc#ssed by %r$ (rana$ (t that point, <P. directed me to
have P(T 8Phillip (rth#r Thompson9 recover >all? o =al/a3s assets# I then contacted De&ilva,
!ho had control o =al/a3s assets and he agreed to release them to me$ De&ilva later called the
Indian reservation and "ave the location o the assets !hich included: one 2o2tail se,itruc/
!ith po!er lit "ate loaded !ith a,pheta,ine production che,icalsD one red Datsun truc/
!ith a porta2le reri"erator containin" the acid#
/I accompanied P(T and +teve ,inley to the locations of these vehicles in the Oa)land area$ The
)eys, title and registration were with each vehicle$ P(T and +, drove the vehicles off and I reported
to <P. that the vehicles had been located and pic)ed #p$
/I also reported to my attorney, ' 8'on ager9, the details$ I contacted <P. a few days later and
he complained to me that P(T had made off with everything$
/ $$$ with @eorge ac)enh#t in Las -egas$ <P. told me that my problems wo#ld be over with if I
went along with the program$ 'rian Weiss I%ary H#ic)!s nephewJ drove me to Palm +prings
where I rented a car$ <P., myself and 7rian eiss then drove to Las -egas$
/e arrived in Las -egas late in the afternoon$ e chec)ed into the hotel$ (fter we chec)ed in, I
was then introd#ced to Phil Porath by <P.$ Porath seemed a little nervo#s and #pset with <P.$ <P.
seemed desperate to have Phil Porath stall @eorge $ on the sale of the yacht$ Phil Porath seemed
rel#ctant to go along with <P.$
/<P., myself and Porath then went to a private section of the dining room and met with 6W
>6eor"e Wac/enhut? and 8%>8ohn %,,arell?# '#ring dinner, <P. o#tlined my sit#ation$ >%l?
$ol2ert, >'en? =al/a, >Richard? =no11i, >and? the 4resno Co,pany !ere covered in detail#
/( c#taway, sectioned high sec#rity loc) was also shown to <( and @ I@eorge ac)enh#tJ$ <(
said that this sho#ld be presented to his personal friend, 7#d %iller, for action and that I wo#ld be
contacted$
/The sale of the 2 Iac)enh#tJ yacht then came #p$ Porath gave @ a story IatJ <P.!s
prompting$ @ was impatient and as)ed where the N+o#th (frican! Thompson co#ld be reached*I
then as)ed @ I@eorge ac)enh#tJ if he was referring to P(T IPhillip (rth#r ThompsonJ and he
said, N>es$!
/I then demanded to )now what was going on* I laid o#t to @ what )%T had done, includin"
,urderin" )( >)aul (orasca?$ <P. interr#pted me and told @ that I was mista)en and it was a
different PT that I was tal)ing abo#t$ It was at that point that @ I@eorge ac)enh#tJ said he had a
hearing problem and the dinner bro)e #p$
/I went immediately to ma)e telephone calls$ I spread the word that I felt my life was in danger and
that <P., 2, and P(T had conspired to )ill P% IPa#l %orascaJ$ I then went bac) to the dining
area where I saw PP IPhil PorathJ and @ I@eorge ac)enh#tJ at a small twoperson table tal)ing
abo#t the yacht deal$ <P. and <( were standing #p and they as)ed me to come to <(!s room$
/(t <(!s room, everybody acted li)e nothing had happened$ There we tal)ed for an ho#r or so abo#t
hitech pro0ects$ <P. and I then went to PP!s room and tal)ed Iabo#tJ P!s missed meeting with Pa#l
%$, 7ill <ensen, 7#rt @ardener and metal pro0ects$ e then went to bed$ The ne&t morning <P.,
7 I7rian eissJ and I drove bac) to Indio$ (t no time did <P. mention the problem that came
down at dinner$/
GGGGGG
In <ohn Connolly!s +P> maga;ine article on ac)enh#t, +eptember 1995 iss#e, on page EA, a brief
notation mentioned 4iconosci#to!s meeting in Las -egas with @eorge ac)enh#t and 8ohn
%,,arell, a Wac/enhut 2oard ,e,2er and cons#ltant to @eorge ac)enh#t$ +P> contacted
(mmarell regarding the meeting, and (mmarell confirmed that s#ch a meeting did indeed ta)e
place in Las -egas$ /I don!t remember any specific conversations,/ (mmarell said, /b#t I thin) we
were there to disc#ss the sale of @eorge!s Iac)enh#tJ yacht, the Top +ecret$ I thin) .ichols said he
had a potential b#yer$/
rote +P>, "&o, the !ealthy president o a lar"e security co,pany !ith CI% ties and one o
his 2oard ,e,2ers ,eet !ith a dru" dealer turned electronics e5pert and a spoo/ turned
ar,s supplier and all they discuss is the sale o a 2oatC"
GGGGGG
(fter reading the newspaper article on the death of Pa#l %orasca, I contacted 8onathan Litt,an at
the +an ,rancisco Chronicle$ Littman 0#mped in the car and drove from +an ,rancisco to %ariposa
8near >osemite .ational Par)9 when he learned I had obtained %ichael!s hidden doc#ments$
Interestingly, when he arrived at my home he th#mbed thro#gh piles of doc#ments, b#t seemed to
be loo)ing for something specific$ I later learned he !as searchin" or )hyllis Riconosciuto3s
+(ichael3s irst !ie3s- diary#
hile %ichael had wor)ed at ac)enh#t, Phyllis had been treated psychiatrically by the Caba;on
administrator, 'r$ <ohn Phillip .ichols$ Part of her treatment incl#ded writing a /diary/ of her life
with %ichael$ %ichael later bro)e into .ichols! office at the reservation and stole the original diary
before fleeing to ashington state$
The original diary was in fact incl#ded in the doc#ments I had obtained in the desert, b#t I decided
to withhold specific pages from Littman #ntil I co#ld determine what his p#rpose for wanting them
was$ (n incident which I have en#merated in Chapter 16, confirmed that my instincts had been
s#bliminally correct$
%eanwhile, I attempted to satisfy Littman with a few doc#ments sent to me by 2enry einstein,
co#rt reporter for the Los (ngeles Times$ I had contacted einstein to in"#ire if he had written
anything on 4obert 7ooth .ichols! 8#nrelated to 'r$ <ohn Phillip .ichols9 laws#it against the Los
(ngeles ,7I, specifically ,7I agent Thomas @ates*
einstein had not heard of the laws#it, b#t immediately investigated at the Los (ngeles co#rtho#se$
+hortly thereafter, he sent a pac)age of doc#ments relating not only to .ichols! laws#it against
Thomas @ates, b#t also relative to .ichols! corporate min#tes on the facilitation of biological
technology to <apanese instit#tes, copies of his weapons permits, and doc#ments indicating that
3#gene @ia"#into, -ice president of %C( 3ntertainment 'ivision, was on the board of directors of
.ichols! corporation, %eridian International Logistics$
(arvin Rudnic/, now a Pasadena lawyer, once tried to prosecute (C% Corporation or
or"ani1ed cri,e involve,ent, b#t got sh#t down at the highest level, and the Organi;ed Crime
+tri)e ,orce was disbanned$ One member of that investigative team was Richard &tavin, !ho
tal/ed to Danny Casolaro shortly 2eore his death#
3#gene @ia"#into and <ac) -alente played heavily in 4#dnic)!s investigation of %C(, as did C#rry
Company 8a s#bsidiary of %C(9 in >osemite .ational Par)$ 4#dnic) was written #p in (merican
Lawyer for his e&plorations thro#gh the %C( labrynth, and at some point, wor)ed closely with
Tho,as 6ates d#ring his investigation of 4obert .ichols$ @ates and einstein were also well
ac"#ainted with (ariposa County "overn,ent3s relationship !ith Curry Co,pany# 8+ee page 5
of man#script9$
In ret#rn for sharing copies of these doc#ments with him, I as)ed Littman to collaborate with me on
a story concerning the government sanctioned +*A yearsP- ,etha,pheta,ine operations at
Whis/ey 4lats, on the &ara )riest Indian reservation in (ariposa# I was still intent on forcing
the arrest of dep#ties involved in the meth lab at that location$ 8+ee page ? of man#script9$ Littman
instr#cted me to p#t together a detailed synopsis which he wo#ld s#bmit to the +an ,rancisco
Chronicle$
GGGGGG
C$%)TER *A
Thro#gh %ichael 4iconosci#to, 'anny Casolaro had compiled a si;able list of former CI( officers
and arms dealers, the most noteworthy of whom was 4obert 7ooth .ichols, described in vario#s
p#blications as a <ames 7ond type who 0etted aro#nd the world trading arms and other prod#cts$
(t the time of 'anny!s investigation, .ichols headed %eridian International Logistics 8%$I$L$9, a
Californiabased company that cond#cted e&tensive b#siness in (#stralia and <apan$ %$I$L$ also
controlled %eridian (rms Corporation of which 4iconosci#to was briefly -ice President$
O#t of the ac)enh#tCaba;on endeavor grew a b#siness partnership between .ichols and
4iconosci#to, both interested in developing new, hightech s#bmachine g#ns and powerf#l e&plosive
devices that, li)e a n#clear blast, co#ld prod#ce an electromagnetic p#lse that co#ld wipe o#t an
enemy!s comm#nicatins and electronics$
The secretive .ichols chatted with Casolaro fre"#ently$ Casolaro!s <#ly phone bills indicated that he
called .ichols fifteen times that month, often in the wee ho#rs of the morning$ +everal of those
phone conversations lasted for more than two ho#rs$ 7efore his death on (#g#st 16th, 'anny
Casolaro told his brother, Tony, and 7ill 2amilton that .ichols warned him that his investigations
were ris)y$
(ccording to ,7I statements, .ichols is not a man whose warnings sho#ld be ta)en lightly$ In
+eptember 19BK, +pecial (gent Thomas @ates of the Los (ngeles ,7I had beg#n an investigation
of the activities of 4obert 7ooth .ichols and his corporation, %eridian International Logistics,
thro#gh <apanese and (#stralian legal attaches abroad$
(ccording to a s#bse"#ent deposition filed by @ates, the b#rea# s#spected .ichols of being
involved in a PE66 million stoc) fra#d and of maintaining ties to the @ambino crime family and
organi;ed crime in <apan$
@ates!s deposition was part of a 19BK wiretapping on the phone of 3#gene @ia"#into, an official of
the %C( entertainment corporation with rep#ted %O7 lin)s$ .ichols was one of the people whose
calls the b#rea# intercepted$ (ccording to the wiretap application, .ichols was allegedly an
international money la#nderer for money generated thro#gh narcotics traffic)ing and organi;ed
crime activities$
In <#ne, 19B9, .ichols s#ed Thomas @ates in a California state co#rt for libel, slander, and
interference with contract#ral relationships when he 8@ates9 allegedly acted o#tside the scope of his
employment by initiating contacts with the (#stralian ,ederal Police and vario#s individ#als in
(#stralia and <apan$ The complaint as)ed for damages in the amo#nt of P11,666,666$
Ted @#nderson s#bmitted an affidavit on .ichols! behalf, stating that he believed @ates 2(' acted
o#tside the scope of his employment when investigating .ichols abroad, the s#it was s#bse"#ently
dismissed thro#gh the .inth Circ#it Co#rt of (ppeals$
4obert 7ooth .ichols was depicted in one eastern p#blication as a /handsome, dashing fig#re,
fre"#ently described as NClar) @able witho#t the ears! $$$/ 2is friendship with movie actor +teven
+eagal bro#ght him a cameo appearance in the movie, /Dnder +iege,/ b#t his real p#rpose for being
on the set was to act as technical advisor for the weaponry #sed in the movie$
The son of a prominent Los (ngeles s#rgeon, .ichols is the inventor of a s#bmachine pistol that he
maintained was s#perior to the %(C16$
.ichols! weapons permit application, dated <an#ary 5B, 19BE from the +anta Clara Co#nty +heriff!s
'epartment, indicated that that he was born on %arch 6, 19A? at Loma Linda, California$ In
addition to his residences in California, he maintained residences in Italy, ,rance, (#stralia and
London, 3ngland for /b#siness p#rposes for twenty years$/
2is medical doctor was listed in F#rich, +wit;erland$ 2e had wor)ed for 2arold O)imoto in 2awaii
for fo#r years, from 196B to 19K5 as -ice President of Preventor +ec#rity Center, an intr#der
electronics firm$
The fo#r g#ns registered to him incl#ded two Colt $AE a#tomatics$ 2is p#rpose for carrying a
concealed weapon was listed as s#ch= /I am involved in the research and development of weapons
systems, ranging from the basic blowbac) a#tomatic weapon to vario#s advanced destr#ctive
devices$ (s I have detailed )nowledge of the wor)ings of these systems, I feel it is imperative to
have personal protection for myself and for the good of the comm#nity$/
.ichols! corporation, (eridian %r,s, a s#bsidiary of %eridian International Logistics, was
licensed in California in 19BK to posses and:or transport machine g#ns, Permit .o$ 616KB, and to
sell machine g#ns, Permit .o$ 616KK$ ( 19BE +tatement by 'omestic +toc) Corporation filed with
the +ecretary of +tate in +acramento listed $arold O/i,oto, )eter Oo/os/y, and 6len &hoc/ley
as Directors in addition to .ichols! family$
O/i,oto, Oo/os/y and &hoc/ley are also listed as Directors on (eridian International
Lo"istics, Inc# +(IL-# Eu"ene 4# 6iaBuinto, president o (C% +(usic Corporation o
%,erica- $o,e Entertain,ent Division in Universal City, !as also a Director o (#I#L# until
(ay :*, *FGG, !hen he resi"ned and returned his *A,AAA shares o stoc/ as a result o the Los
%n"eles Or"ani1ed Cri,e Tas/ 4orce investi"ation, at that ti,e headed 2y Tho,as 6ates#
The %ay 5E, 19BB %in#tes of an %IL 7oard meeting reflected 4obert 7ooth .ichols concern with
the investigation= / $$$ Dpon meeting with (gent @ates on %arch B, 19BB, o#r legal co#nsel, <#dge
%ar) 4obinson, interpreted the line of "#estioning of (gent @ates as having a main foc#s on the
relationship between 4obert .ichols and %C(, Inc$ 8of which %r$ @ia"#into is an officer9$
/ $$$ Therefore, d#e to %r$ .ichols! concern, which %r$ @ia"#into #nderstood and th#s stated he
wo#ld s#bmit written resignation within two daysL it was the #nanimo#s decision of the 7oard to
remove %r$ @ia"#into from the position of 'irector of %IL forthwith $$$/
.ichols! concern with s#ch an investigation can well be 0#stified when yo# review the %in#tes of
an %IL board meeting held in +herman Oa)s on (#g#st 56, 19BB$ The following b#siness was
disc#ssed and voted #pon= 83&cerpted9
/It was the #nanimo#s decision of the 7oard to draft a letter to the President of an internationally
recogni;ed %edical +chool in <apan 8as referenced in o#r corporate min#tes of (pril 5A, 19BB9 !ith
re"ard to our corporation3s intention to ,a/e availa2le a "rant o unds to said +chool, as the
f#nds become available to o#r corporation, and #nder specific terms and conditions$
/ $$$ The phenomenal s#ccess in the field of imm#notherape#tics by the Imm#nology 'epartment of
said <apanese %edical +chool has convinced the 7oard Iof %ILJ that the EECLU&I7E trainin" o
Bualiied physicians under contract to and the direction o (eridian International Lo"istics,
Inc#, !ould 2e o "reat value and 2eneit to our co,pany and it3s shareholders#"
hile reading these doc#ments, I couldn3t help !onderin" !hy an "ar,s" dealer, alle"edly tied
in !ith or"ani1ed cri,e, !anted to und the e5clusive trainin" o physicians at a 8apanese
,edical schoolC
The %in#tes of %IL dated +eptember 56th, 19BB, referred to an agreement e&ec#ted on +eptember
1Ath, which disc#ssed the threeway, e"#al ownership between %IL, 'r$ +higeyoshi ,#0imoto, and
(0inomoto Co$ Inc$, of certain patented 2iolo"ical technolo"y identiied as "a ne!ly devised
technolo"y or induction and activation o cytoto5ic Tly,phocytes +Tcells-, referred to as CTL,
directed to a#tologo#s cancer cells in vitro with high efficacy #tili;ing a ser#mfree medi#m$/
( Power of (ttorney was iss#ed to attorney ,#0io C#bota in <apan to file patents and registrations
on the technology entitled "The (ethod or Induction and %ctivation o Cytoto5ic
TLy,phocytes#"
The signatories on the (greement to file 4egistrations and Patents on +eptember 1A, 19BB were
listed as 'r$ +higeyoshi ,#0imotoL Ta)asha %iyamae 8(0inomoto Co$, Inc$9L 2idetoshi Onogi
8representative of %IL9L Canehiro Ishida 8International +ervice Center, Inc$9L and Ta)ashi
C#ma)awa 8(merican 3mbassy9$
2idetoshi Onogi was granted f#ll power of attorney to negotiate and e&ec#te an e"#ity position for
%eridian International Logistics related to the filings and /any other doc#mentation pertaining to
the technical )nowledge and the mechanical and:or chemical processes for the prod#ction of T Cells
as are present in the imm#ne system of the h#man body or any other organism$/
In and of itself this transaction seemed innoc#o#s eno#gh$ 'ut a"ain I as/ed ,ysel, !hy !as an
international ar,s dealer on the 'oard o 4#I#D#C#O +4irst Intercontinental Develop,ent
Corporation-, a CI% ront corporation, !hich oered three 2illion dollars to re2uild 'eirut to
)resident %,in 6a,ayel o Le2anon, !hose chie o inances +&a,i el =houri- !as shippin"
tons o heroin to &icily or ree5port to %,erica, !ant to invest in "a ,ethod or induction and
activation o cytoto5ic TLy,phocytes"C
as this technology being developed with the a#thority of the D$+$ government, or independently*
If .ichols! operations were in fact government sanctioned, then it m#st have been fr#strating for
him to be investigated by the ,7I$ The concept o the 4'I inadvertently investi"atin" the CI%
!as ironic# %nd !hat had Danny Casolaro learned a2out this technolo"yC
I fo#nd a possible answer in an obsc#re letter written on ac)enh#t:Caba;on letterhead, dated
<an#ary 56, 19B?, addressed to 'r$ 2arry ,air at Tactical Technology in (rlington, -irginia, from
'r$ <ohn P$ .ichols, Caba;on (dministrator$ The letter noted that on ,ebr#ary 1Eth, 19B?, 'r$
.ichols wo#ld be forwarding to 'r$ ,air /a #ni"#e list of agents and prod#ction techni"#es related
to 2iolo"ical !arare#"
The letter went on to say that the +toremont Laboratories b#siness plan 'r$ .ichols mailed to him
was to prepare him for what was to be sent in the area of 2iolo"ical !arare# (dded 'r$ .ichols=
">These? products could 2e utili1ed in s,all countries 2orderin" %L'%NI% or lar"e countries
2orderin" the &oviet Union# .ou !ill 2e a,a1ed at the scope ###" I co#ld not help recalling the
-illage -oice article 8/The Last 'ays of 'anny Casolaro,/ October 1E, 19919 which had stated,
tong#e in chee), that /Casolaro had traced the Inslaw and related stories bac) to a CI% @Old 'oy3
net!or/ that had 2e"un !or/in" to"ether in the *F<A3s around the %L'%NI% covert
operations ###"
The hybridoma technology disc#ssed in attached doc#ments 8in %ichael 4iconosci#to!s files9,
centered aro#nd the ability to reorgani;e and synthesi;e genetic str#ct#res and to modify
/lymphocytes/ 8imm#ne cells9$
Dnder the heading /Possible %ilitary (pplications Dtili;ing 2ybridoma Technology/ was the
notation that ""enesplicin" technolo"y provides the a2ility to produce patho"enic +har,ul-
a"ents, i#e# viruses#"
"In act," noted the !riter, "2iolo"ical !arare !eaponry o this nature +2oth production and
supply- is li,ited only 2y the i,a"ination o the scientist#"
Incl#ded in the above mentioned doc#ments 8attached to the 'r$ 2arry ,air letter9, was a proposal to
develop monoclonal antibody )its to detect the presence of s#ch harmf#l biological agents in a field
8combat9 environment$ In other words, develop a laboratory created vaccine for a laboratory created
vir#s$ The very same proposal had been s#bmitted to Peter Fo)os)y in 'ecember 19B5 by <ohn P$
.ichols$
I wondered, was T2I+ the same technology that 4obert 7ooth .ichols and the 'irectors of %IL,
incl#ding Peter Fo)os)y, @len +hoc)ley and 2arold O)imoto, were fronting to the <apanese* hat
)ind of /weapon/ was this*
Other weapons disc#ssed in the same letter incl#ded the Caba;on (rms C( 9 +%@ which /Peter
Fo)os)y had the 7ritish interested in$/ The C( 9 +%@ co#ld be prod#ced for PKE$66 per #nit on the
reservation and sold for P166 to P15E$66$ /It meets all the needs of a small, poor democracy for
9%% parabell#m,/ said .ichols$
/They can afford to p#rchase this one$ e have fired over E6,666 ro#nds with the test model #sing
+o#th Corean amm#nition witho#t 0amming$ e co#ld begin man#fact#ring within two wee)s in a
co#ntry li)e @#atemala, Chile, etc$, #tili;ing D+( prod#ced dies and +wedish e&tr#sion
machinery$/ $$$ )eter Oo/os/y has fired both the -iper and the C( 9 +%@ and was impressed with
both, b#t partic#larly with the C( 9 +%@$ C#wait has been partic#larly interested in financing the
prod#cion of the C( 9 +%@ $$$/
'r$ .ichols concl#ded= /e wo#ld initially man#fact#re on the reservation$ We can purchase an
e5istin" s,all co,pany !ith all the licenses to ,anuacture and e5port# I%eridian (rms*J e
are ready$ e are contin#ing to e&periment with the combination sniper rifle 89%%9 e"#ipped with
micropressor vision enhancement 8no t#bes9 8night vision9$ (ichael Riconosciuto and so,e
riends o the reservation have 2een !or/in" cooperatively on this pro0ect# ithin another 96 to
156 days we sho#ld have a wor)ing model to #se on the C( 9 +%@ and the sniper rifle$/
The ongoing pro0ects listed in research and development were a second 9%% calibre machine
pistol, an assa#lt rifle with laser sighting, a longdistance sniper rifle, and a small portable roc)et
system which co#ld be attached to the assa#lt rifle$
Three months later, on (pril 1?, 19B?, 4obert 7ooth .ichols wrote to <oseph Prelo;ni) in %adison,
isconsin, recapit#lating e&actly the same weapons proposal as o#tlined above by 'r$ <ohn .ichols
to 'r$ 2arry ,air$
I never fo#nd o#t who <oseph Prelo;ni) was, b#t 'r$ 2arry ,air!s name popped #p in a ac)enh#t
InterOffice %emorand#m in %ichael!s files$ 'ated %ay 5E, 19B1, from 4obert ,rye, a -ice
President of ac)enh#t in Indio, to Ro2ert Chasen, a 7ice )resident o Wac/enhut in Coral
@ables 8and former Commissioner of D$+$ C#stoms9 the memorand#m detailed a %ay 151? visit to
Dr# $arry 4air, Chief of Prop#lsion Technology, (pplied +ciences 'ivision and others at
)ic/itinny %rsenal in Dover, Ne! 8ersey#
The arsenal was listed #nder the official heading of /D$+$ (rmy (rmament 4esearch M
'evelopment Command, Large Caliber eapon +ystems Laboratory/ or (44('CO%$
The fivepage memo not only o#tlined the depth of ac)enh#t!s commitment and involvement at the
Caba;on reservation, b#t it delineated Peter Fo)os)y!s importance to the pro0ects #nderway there$
One of those pro0ects incl#ded proposed constr#ction of an /4 M '/ 84esearch and 'evelopment9
facility on the Caba;on Indian reservation for the man#fact#re of 156 mm$ comb#stible cartridge
cases for sale to the D$+$ (rmy, with sales also to .(TO, and especially to the ,ederal 4ep#blic of
@ermany which at that time, was adopting the #se of s#ch cases in their Leopard tan)s$
rote ,rye= "The o2vious /ey to any such endeavor is >)eter? Oo/os/y# 2e is reportedly one of
only 6K personnel in the world who have had any significant e&perience in the development and
man#fact#re of the sl#rry process involved in comb#stible cartridge cases$ 2e is #nder present
noncompete agreement with (rmtec, his former company, #ntil (#g#st 19B1$ (rmtec is the present
sole so#rce s#pplier of 156 mm$ comb#stible cartridge cases to the D$+$ @overnment$ Fo)os)y is
also serving as a cons#ltant to the 7ritish @overnment $$$/
It is noteworthy that the Caba;on Indians had enlisted the aid of other Indian tribes to 0oin in their
endeavor$ Dse of ad0acent tribal lands as a location for a large caliber weapons range test site was
obtained from a sister tribe, the Torres %artine;, involving some ?6,666 acres of very remote and
desolate land near the +alton +ea$Potential #se of a test firing range for the /railg#n/ on the +anta
4osa %o#ntain, #nder the control of the +anta 4osa Indians, had also been pledged to the Caba;ons
and the D$+$ @overnment$
( notation was incl#ded in the lengthy memorand#m to /firm #p the deal between the <oint -ent#re
and 8ohn 7ander!er/er, )resident o Intersect Corporation, >in? Irvine, Caliornia," !ho had
the e5clusive ri"hts or orei"n ,ar/etin" with the Litton 3lectron T#be 'ivision in third !orld
countries#
(ention o 8ohn 7ander!er/er in the Wac/enhut ,e,orandu, !as sin"ularly i,portant in
,y investi"ative leap ro, overt ar,s operations to "covert" intelli"ence operations#
%ccordin" to )eter Oo/os/y, 7ander!er/er !as on the CI% payroll# In 4iconosci#to!s files, I
located a letter dated (pril 11, 19B?, !ritten to 7ander!er/er at Intersect Corporation ro,
6lenn &hoc/ley, a 'oard Director o 2oth 4#I#D#C#O# +4irst Intercontinental Develop,ent
Corporation- and (IL +(eridian International Lo"istics-, under investi"ation or or"ani1ed
cri,e activities# Ro2ert 'ooth Nichols !as also on the 'oard o 2oth corporations#
The Octop#s trail gets a little complicated here, b#t it is a significant trail$ 'oth 7ander!er/er and
&hoc/ley !ere on the CI% payroll# 'oc#ments to that effect will be noted in f#t#re pages$ In the
aforementioned letter, &hoc/ley !as oerin" to 7ander!er/er ortyt!o %$*& Co2ra
$elicopters at a #nit price of seven million eight h#ndred tho#sand D$+$ dollars each$
The rest of the letter read as follows= 8.ote a few words had been damaged while &ero&ing9 /The
price offered is ,$($+$ location at +eller!s option 3#rope$ The price is net to 7#yer possessing the
proper doc#mentation and does not incl#de any government considerations 8ta&es9, if any, all of
which 8indecipherable9 to the 7#yer!s acco#nt$
/,or verification of the e&istence of these prod#cts, yo# are re"#ested to refer to tele& transmission
occ#ring d#ring the +pring of 19B1 between Union 'an/ &uisse o Ourich, +wit;erland, and
Omega Ind#stries of Long Island, .ew >or)$ The transmissions were addressed to %r$ Parvis Lavi
at Omega and were signed by %r$ .$($ 8indecipherable9 ban) officer$ >o#r immediate response to
this offer wo#ld be greatly appreciated$ +incerely, @lenn$ 4$ +hoc)ley$/
(ttached to this letter was a handwritten memorand#m, obvio#sly ta)en from the above referenced
/tele&/ transmission$ The memo delineated the proced#re for /airframe I$'$ n#mber ac"#isition$/
The b#yer!s ban) officer was instr#cted to telephone +eller!s ban) officer at B=66 a$m$ T#esday
morning to relay the following +eller!s ban) data= /'an/ Credit &uisse, 6eneva# Officer %r$
3#com#n$ Telephone n#mber 611A155?6E?B6$ %ccount Nu,2er A9I;H<FA <;G9* Reerence
Code 8#$#"
If the connection was missed, then it was to be repeated ednesday at B=66 a$m$ P16 million D$+$
dollars was to be e&changed at the ban) for IaJ ,rame I$'$ .o$ on ednesday$ If all was ready to
proceed in @eneva in E ban)ing days, then the P16 million wo#ld be credited to the b#yer!s acco#nt
toward ac"#isition of all craft$ If not, then P16 million was to be forfeited$
The ban) officer!s follow#p monolog#e as noted on the memorand#m read as follows= "%ctin" on
2ehal o our client, I conir, that he has on deposit the su, o K*A ,illion U#&#D# Dpon
receipt of one airframe identification n#mber, the price of one craft will be set aside irrevocably for
yo#r client$ If o#r client does not present to yo# within E ban)ing days in @eneva, +wit;erland, all
necessary data, doc#ments and f#nd commitments, he has agreed to forfeit the price of one craft to
yo#r client!s acco#nt$/
(lso attached to these doc#ments, was a sheet of handwritten notes obvio#sly related to the above
transaction$ The names of vario#s ban)s and their locations, along with the name of a ban) officer,
notations abo#t ,etric tons o "old, and a code name, /%essenger 7oy,/ were cryptically scrawled
on the sheet$
I in"#ired of %ichael 4iconosci#to what the story was on the sale of the Cobra helicopters*
4iconosci#to briefly related the following story$ The fortytwo Cobra helicopters had been ordered
by:for .(TO, then after the helicopters were b#ilt, the f#nding was not available$ Nichols and
6lenn &hoc/ley, !or/in" or the CI%, !ere contracted to ""et rid o the helicopters#" 8ohn
7ander!er/er !as 2rou"ht into the operation and the helicopters !ere shipped to a
!arehouse in Europe, destined or North =orea, then IraB#
It is i,portant to note here that North =orea !as a conduit or ar,s to IraB ro, 2oth the
United &tates and the &oviet Union# In essence, the Dnited +tates was forced to /compete/ with
the +oviets in providing arms to Ira"$
This is disc#ssed in f#rther chapters, b#t in s#mmary, what it all boiled down to was Oliver .orth
s#pplied arms to Iran$ The CI( s#pplied arms to Ira"$ (nd ac)enh#t s#pplied arms to the Contras$
(ll #nder the a#thority and s#pervision of the D$+$ @overnment$
I as)ed %ichael 4iconosci#to if 'anny Casolaro had )nowledge of the /helicopter/ deal* %ichael
responded, /I gave him the names of the people that were involved and 'anny went o#t and
confirmed it$/
I as)ed him to elaborate$ /ell, 'anny went and tal)ed to 4oy ,#rmarc 8phonetic sp$9, illiam
Casey!s e&right hand man, and ,#rmarc admitted that he had contact with them Ithe helicoptersJ$
(nd when the .(TO st#ff disappeared, 7ob I.icholsJ disappeared with it$ They weren!t going to
pay 7ob and his accomplices what they wanted, per the original deal, and 7ob got angry and 0#st
wal)ed away with it all$ 'ut 'o2 "ot help ro, so,e people in the White $ouse, and they cut a
certain "roup o "uys in the a"ency >CI%? out#"
I as)ed, /ho was involved with the helicopter sale besides .ichols*/
/ell, 6len &hoc/ley, Parvis Lavi 8phonetic sp$9, he!s an Iranian, b#t he wor)ed with the Israeli
8indecipherable word9 %ission o#t of .ew >or) $$$/
4iconosci#to pa#sed, remembering, then contin#ed with his story= / $$$ I bro#ght in +tan +inger,
former dep#ty Israeli 'efense %inister, to try and ta)e all those helicopters off everybody!s hands$ I
wo#ld have made a nice, tidy s#m of money for myself $$$/
/ho were the helicopters originally destined for*/
%i)e= /.(TO$ '#ring the Carter administration, there was a slip #p on some f#nding, they were
really screwy in the way they handled certain things $$$/
/as this some )ind of an #ndercover operation*/
%i)e= /It was on the #p and #p, reg#lar deliveries from the Dnited +tates to .(TO, b#t there was
some )ind of a mis#nderstanding between the #pper reaches of the Carter (dministration and some
of the other .(TO co#ntries, so while they were having highlevel disc#ssions, no financial
instr#ments e&changed hands$
/They finally came to terms on the financial end of it, b#t by that time the st#ff IhelicoptersJ had
been removed from the loading doc)s and wareho#ses$/
/+o, they were gone*/
%i)e= /They were gone$/
/To .orth Corea*/
%i)e= /Into storage in 3#rope$ Later they got sold to .orth Corea, and other places$ It was hotter
than hell $$$/
/here in 3#rope, do yo# )now*/
%i)e= /ell, I don!t want to go into it on the phone Ifrom 0ailJ, b#t I )now the whole story behind it$
hile it was in storage, everbody and their brother was trying to b#y the st#ff and the price got
0ac)ed way #p$ Casey!s faction and Carl#cci and those g#ys, they wanted it all, wanted to screw
7ob and his g#ys, and 7ob made an alliance with somebody else for the st#ff $$$/ /ho*/
"Well, later !ith (i/e (c(anus in the White $ouse#" 8%c%an#s was assistant to President
4eagan, and on the 7oard of 'irectors of ,$I$'$C$O$ with .ichols9$
/hy did they call #pon .ichols to do this* hat was his connection*/
%i)e= /7ob had been doing errands for them for years $$$/
/ho in partic#lar*/
%i)e= /7ob was wor)ing #nder Larry Cern basically$ (nd 3llen!s father I.ichols! wifeJ was
somewhere in there $$$/
/as he wor)ing for the .+C at that time*/
%i)e= "8ust the CI%# $e !as 0ust doin" contract type !or/# 2e was good at what he did$
hatever ob0ectives were given to him, 7ob always achieved them$ >o# )now, he has an
impeccable trac) record $$$/
In a s#bse"#ent interview with 4obert 7ooth .ichols, I as)ed him abo#t the helicopter deal$
Nichols conir,ed that he had, indeed, participated in the ship,ent o the helicopters to
Europe throu"h the CI%#
In news interviews, ac)enh#t had denied association with %ichael 4iconosci#to, yet in %ichael!s
files, I fo#nd a letter written on %eridian (rms letterhead, dated ,ebr#ary 16, 19BA, from 4obert
7ooth .ichols to 'r$ 2arry ,air referring to the ac)enh#t visit to Pic)itinny (rsenal in %ay,
19B1$ .ichols reminded 'r$ ,air of the demonstration at Pic)itinny in which /%ichael 4iconosci#to
IhadJ disc#ssed electrostatic heat transfer a#gmentation in a wide range of applications $$$ and
demonstrated control of heat in electric discharge$/
This letter was significant in that it confirmed that 4iconosci#to 2(' in fact accompanied Peter
Fo)os)y and 4obert ,rye, -ice President of ac)enh#t, to the Pic)itinny (rsenal to demonstrate
the above mentioned technology$
GGGGGG
The cr#& of the ac)en#t involvement in arms development and shipments thro#gh vario#s
so#rces, incl#ding Peter Fo)os)y, 4obert 7ooth .ichols, <ohn -anderwer)er, and others, was tied
irrevocably to the 4eagan administration!s efforts to aid the .icarag#an Contras$
% &pecial Operations Report e,anatin" ro, the Riverside, Caliornia, District %ttorney3s
oice !hich !as sent to 8ohn Cohen, investi"ator or the $ouse 8udiciary Co,,ittee on
Insla!, provided indisputa2le proo that Wac/enhut sold ar,s to the Contras#
The +pecial Operations Intelligence 4eport entitled, /.icarag#ans and 3arl 7rian at La)e Cah#illa
9:16:B1/ described a meeting held between two gro#ps, the .icarag#ans and ac)enh#t:Caba;on
officials, at a co#ntyowned police firing range at La)e Cah#illa in 4iverside Co#nty$
(ccording to the s#rveillance report, the p#rpose of the meeting was /to test a new night vision
device and weapons$ (ll ItheJ weapons tested were semia#tomatic$ I(S new sniper rifle tested was
a E6 caliber with a ?6B b#llet$/
The report went on to note that /some a#tomatic weapons were present, b#t all had necessary
per,its throu"h (eridian %r,s# %eridian (rms IisJ owned by %ichael 4iconosci#to, 4obert
7ooth .ichols 8no relation to <ohn Phillip .ichols9, and Don Oliver or,er Undersheri o &an
Die"o County# %eeting and testing too) abo#t one ho#r, then all parties left$/
Police officers had been placed aro#nd the s#rro#nding area in a s#rveillance:protection type mode$
3ach of the si& Indio police officers participating in the range s#rveillance were named individ#ally
in the report$
The license plate n#mbers of each car that arrived on the scene was incl#ded in the 4eport along
with the names and identification of everyone who attended the demonstration$ +ome of those
names and I$'$!s were=
/%ichael 4iconosci#to 4esearcher for Caba;on Indians$/
/Peter Fo)os)y President of (rmtech Coachella$/
"8ohn D# 7ander!er/er and a couple o his riends 7ander!er/er, CI% Research Director or
CI% >or? G years#"
/3arl 7rian isconsin b#sinessman and CI( employee$/
/Two .icarag#an @enerals Eden )astora, Co,,ander Oero and <ose C#rdel, Commander
(lpha$/
/4a#l (rana Central Caribbean research proc#rement front for liberation of .icarag#a 8PreContra
days9$/
/<ohn Phillip .ichols Caba;on Indian %anager$/
/ayne 4eeder 7#ilder:'eveloper//<immy 2#ghes +ec#rity Chief Caba;on Indians/
/(rt elmas Tribal Chairman of Caba;on Indians$/
/+cott esley Dnited +tates (rmy$/
/2ond#ran Telephone Company %ilitary connection networ) in +o#thern 2emisphere$/ (nd others$
The s#rveillance report indicated that ayne 4eeder and 3arl 7rian arrived together in a 19B1
hite 4olls 4oyce, License Plate .#mber OC 5Q@5?65$ The two .icarag#an @enerals arrived in a
19B1 2onda, License Plate .#mber (F (,%BKK$
% ne!spaper article in the Los %n"eles Ti,es, dated (ay *H, *FF*, entitled, "Norie"a )apers
Clai, CI% &ent $i, (illions," by %i)e Clary, reported that @eneral %an#al .oriega, Panama!s
former strongman leader, !as paid ,ore than K** ,illion ro, a CI% slush und# ( 16Kpage
.oriega defense doc#ment contended that .oriega once warned the CI( to p#t an end to cocaine
shipments to the Dnited +tates that were being #sed to raise f#nds for the Contras in .icarag#a$
.oriega, who was sched#led to go on trial for dr#g sm#ggling on <#ly 55, ,aintained that planes
carryin" ar,s to Nicara"uan re2els returned to the United &tates loaded !ith ille"al dru"s# It
!as clearly a "uns or dru"s policy, he said#
The article concl#ded that "Norie"a served as a conduit or cash pay,ents ro, the CI% to
oneti,e anti&andinista leader EDEN )%&TOR%#"
&o, in *FG*, Eden )astora attended the Wac/enhut ni"htvision "o""les de,onstration in Indio
!ith nu,erous CI% e,ployees in attendance, and ten years later, the L#%# Ti,es reported
that )astora !as a recipient o cash pay,ents, via Norie"a, ro, the CI%#
GGGGGG
I believe it is safe to theori;e at this point that the vario#s tentacles of the Octop#s heretofore
o#tlined were #sed to develop and ship arms to vario#s co#ntries s#ch as .icarag#a, (fghanistan,
Lebanon, Pa)istan, and other third world co#ntries in e&change for cocaine and heroin$ These
co#ntries certainly didn!t have the f#nds to pay with cash$ (nd it is possible that The Company was
in fact the mechanism #sed to distrib#te the dr#gs after entry into the Dnited +tates$
The reader may be wondering how I obtained a copy of the abovementioned /+pecial Operations
Is#rveillanceJ 4eport$/ I had re"#ested a copy of it from both the 4iverside 'istrict (ttorney!s
office and <ohn Cohen, investigator for the 2o#se <#diciary Committee on Inslaw, b#t the report
was confidential and neither wo#ld send me a copy$
I then called Peter Fo)os)y and as)ed him to corroborate the report!s e&istence$ 2e not only
corroborated it, b#t he offered to send me a copy$ hen I as)ed how 23 had obtained a copy, he
said, /I as)ed a friend in ashington '$C$ to go into the I2o#se <#diciaryJ va#lt and ma)e a copy
for me$/
I received a copy shortly thereafter from Peter Fo)os)y$ hen I called <ohn Cohen and mentioned
I!d obtained a copy, he said he was aware that /someone/ had gotten past the g#ards and into the
2o#se va#lt$ 2e didn!t )now what had been ta)en, b#t he validated the doc#ment in my possession$
C$%)TER **
%ichael 4iconosci#to had some, if not all, of the answers to the gene splicing technology that
Fo)os)y and ac)enh#t had attempted to sell to the (rmy weapons division in 19B?, and later
fronted to the <apanese, thro#gh %eridian International Logisitcs, in 19BB$
I felt that time was of the essence in #ncovering the nat#re of this technology, so I p#shed
4iconosci#to to tal) abo#t it$ /It loo)s li)e 3arl 7rian, +ir 'enis Cendall, 2erc#les 4esearch,
ac)en#t, Fo)os)y and 7ob .ichols were all involved in the same biotechnological agenda $$$/
%ichael answered, />o# got it$/
I as)ed, /(re they connected, or are they all individ#ally wor)ing on their own pro0ects*/
%ichael= />es$/
/2ow*/
%ichael= /Chec) o#t 7io14ad Laboratories$ Their international head"#arters are on half of the
property that #sed to be the 2erc#les plant, in 2erc#les, California$ 'o yo# #nderstand what I!m
saying* 7io4ad ma)es the most to&ic biological and radioactive compo#nds )nown to man$ (nd
they!re now located in the town of 2erc#les$ 7io4ad Ind#strial Par)$ That b#ilding of theirs, the
head"#arters, doesn!t loo) li)e m#ch, b#t it goes 56 stories down into the gro#nd$ It!s a h#ge
#ndergro#nd comple&$
/+ee, 7io4ad was the flagship company, and then they I3arl 7rianJ started InfoTech, and then they
got mired in laws#its and then 2adron was formed to be a c#to#t parent corporation, yo# )now, 0#st
to be a firewall from law s#its $$$/
I as)ed, /hat do they do at 7io4ad*/
/ell, they ma)e the most ha;ardo#s biological and n#clear chemicals in the world, for medical
research$/
/ho do they sell it to*/
/ell, front line researchers all over the world$ 7io4ad is the single so#rce for this st#ff $$$ act#ally
(ldrich Chemical sells it, there!s abo#t 166 companies, b#t 7io4ad is head and sho#lder above all
of them by a factor of ten on many things li)e Cytoto&ins$/
I remembered reading abo#t Cytoto&ins in the ac)enh#t:Caba;on biological warfare letters to 'r$
2arry ,air$
%ichael contin#ed $$$ />o# loo) at Cytoto&ic TLymphocytes$ >o# go as) any medical professional
what they!re doing on the leading edge of research there* hat the f#ll implications to h#manity
are, OC*/
I wanted clarification from %ichael, so I answered, /It loo)s to me li)e research on a c#re for
cancer$/
%ichael too) the bait$ /@o as) a professional$ I!d rather have yo# hear it from a collateral so#rce
other than from me$/
/ell, give me some indication $$$/
%ichael responded hesitantly, /It wo#ld have been 2itler!s wet dream$ It!s selective to s#ch a degree
that it!s awesome$ ith the appropriate genetic material, yo# can wipe o#t whole segments of
h#manity$ There!s no stopping it$/
/I as)ed, />o# mean yo# co#ld selectively wipe o#t certain races of people*/
/+#re$/
/<ee;$/
%i)e contin#ed $$$/(nd, also, from the beneficial side, yo# can very specifically wipe o#t disease
cells, cancer cells$ Loo) at the patents$ Loo) at Imm#ni& 8phonetic sp$9 Corporation, loo) at the
patent portfolios on 7io4ad$/
/ho!s 7io4ad!s main b#yer*/
/ell, the .ational Instit#te of 2ealth, yo# )now, every hospital in the world b#ys 7io4ad
prod#cts$/
I had read abo#t +ir 'enis Cendall, the famo#s %16 7ritish intelligence officer d#ring orld ar
II, in /ho!s ho in (merica,/ 19B9 iss#e$ Cendall had wor)ed with %ichael in some, as yet,
#ndefined capacity$ 7obby 4iconosci#to had noted to me that Cendall and Ted @#nderson had
co#nseled Oliver .orth prior to his testimony to Congress$ Cendall was also heavily involved in
arms and biotechnology, according to %ichael 4iconosci#to$
/ho!s ho/ described 'enis illiam Cendall as a /medical electronic e"#ipment company
e&ec#tive,/ born in 2alifa&, >or)shire, 3ngland on %ay 5K, 196?$ Cendall came to the Dnited
+tates in 195?, was nat#rali;ed in 19EK$ 2is bac)gro#nd incl#ded being a cons#ltant to the
Pentagon on high velocity small arms from 19A6 to 19AE$ 2e was listed on Ch#rchill!s ar Cabinet
@#n 7oard from 19A1AE$ 2e was later e&ec#tive vice president of 7r#nswic) Ordnance Plant in
.ew <ersey from 19E5 to 19E6$ ,rom 1961 to 19K?, became president of 'ynapower %edonics in
Los (ngeles, and chief e&ec#tive of Cendall %edical International, Inc$ in Los (ngeles in 19K?$
In 19B?, the same year that ac)enh#t was offering biological warfare agents to the (rmy, +ir
'enis Cendall was the chairman of +teron Prod#cts, Inc$ 2is cl#b membership listings indicated he
was a ?5 degree +hriner in the Pacific Palisades 8California9 %asons and a member of the 4eligio#s
+ociety of ,riends 8H#a)er9, amongst other things$
I as)ed 4iconosci#to, /hat was +ir 'enis Cendall!s connection $$$*/
%ichael bro)e in $$$/2e!s involved in all of it$ >o# might be able to get a handle on Cendall thro#gh
Tiny 4oland, a s#bsidiary of which is Peng#in 7oo)s$ (nd the other goodoleboy in the nail wor) is
Octav 7otnar$ Then there!s olfgang ,osog 8phonetic sp$9, 4enee 2anner, Co#nt Otto Lin)ee
8phonetic sp$9 $$$/
/2ow did yo# meet these g#ys*/
/I was introd#ced thro#gh <oe +nell and .orman 'avis$ +nell was considered the father of
ind#strial design$ 2e was an ind#strial design artist who did the logos for Coca Cola, Chanel .o$ E,
Life %aga;ine$ .orm 'avis owned 8#nintelligble9 brewery #ntil he sold to Carling$ %y dad was his
advertising and p#blic relations man$ %y dad didn!t )now Cendall personally, b#t .orm 'avis did$
I met Cendall thro#gh 'avis$/
/'o yo# )now what Cendall is into c#rrently*/
/+#re$/
/hat wo#ld that be*/
/There!s a pharmace#tical company in Los (ngeles$ There!s a medical electronics company $$$ Ted
+hannon in Los (ngeles s#pervises all the prod#ction for that st#ff$ It!s very e&otic, far o#t st#ff$
(nd he!s still in a controlling position in 7r#nswic) IOrdnanceJ Corporation$/
I as)ed 4iconosci#to, /2ow close was 7io4ad to yo#r father!s plant, 2erc#les*/
%i)e answered, /It!s on the same propertyO/
/%i)e, when yo# were cond#cting research at 2erc#les, yo# were inc#bating something in fish
tan)s there$ hat was it*/
%ichael!s response had a nervo#s edge to it$ /here $$$ where are yo# getting this*/
4iconosci#to was #naware at that point that his hidden files were in my possession$ /I!m 0#st
th#mbing thro#gh some old doc#ments $$$/
/ $$$ Those doc#ments aren!t s#pposed to e&ist any more$ They!ve all been destroyed$/
/7y whom*/
/ell, it was a matter of ro#tine, yo# )now $$$ they CODL'.!T e&ist $$$//
/Dh, h#h$/
/That!s what they!re doing with all this stoc) manip#lation, yo# )now$ The biologicals are what got
them in the door at s#ch a high level in <apan $$$/
I sensed 4iconosci#to!s possible involvement in the pro0ect, his rel#ctance to disc#ss it$ 7#t he
believed I had /all/ the records and he stammered on$ / $$$ That paperwor) trail sho#ldn!t e&ist$ I
mean it was )ept in a safe place, and then it was shredded$ (nd the only people that had any direct
)nowledge of it was IPeterJ Fo)os)y and 3arl 7arber, <ohn .ichols, 7ob .ichols, yo# )now, those
people $$$/
%ichael was attempting to disengage himself from any responsibility for the research$
/ $$$ If there are any records left, those are their records, not any of o#rs Iat 2erc#lesJ, beca#se I!m
s#re all of o#rs were destroyed$/
I as)ed, /hy did yo# destroy them*/
/ell, do yo# #nderstand the nat#re of this technology* >o#!re tal)ing in vag#e, general terms$/
I answered, /I have an idea $$$/
%ichael inter0ected, / $$$ 2orrible things$ >o# )now, it ma)es what the .a;i!s did to the <ews loo)
mild$ The 4omanian Pro0ect, do yo#r homewor) on that pro0ect, yo# )now it!s a horrible germ
warfare pro0ect $$$/
/Dh, h#h$/
/ $$$ (nd the +oviets were involved in it, and we co#ntered it with o#r own methods$/
I noted to %ichael that 7ill T#rner, the man who had met 'anny Casolaro in the par)ing lot of the
+heraton %artinsb#rg Inn 8with 2#ghes (ircraft doc#ments9 on the day before his death, was
c#rrently in 0ail$ T#rner had written a letter in which he tal)ed abo#t an Ira"i from the Ira"i
3mbassy who was facilitating the transportation of biological warfare items to Ira"$
%ichael responded, /Listen, +addam 2#ssein introd#ced chemical and biological warfare agents to
all his top military leaders$ (nd he became enamored with this technology$ 2e!s been on a binge of
sorts$ 3ven when he was in the secret police of Ira", he #sed chemical means on a wide scale $$$/
I as)ed, /7#t none of these vario#s entities that I!ve 0#st named were dealing directly with Ira",
were they*/
/.o, no$ .ot directly$ (ll they needed was a -3.'O4+ LI+T$/
4iconosci#to noted that the shipments were all IT(4 8International Traffic)ing of (rmaments9
reg#lated chemicals, electronics, comm#nications e"#ipment, anything that was on the IT(4 list$
GGGGGG
In (#g#st, 1991, the ,inancial Post ran a story on 'r$ 3arl 7rian$ (t that time, 7rian!s main
company, Infotechnology Inc$ of .ew >or) was ban)r#pt, and its s#bsidiary Dnited Press
International 8DPI9 was on the verge of collapse$
(ccording to the ,inancial Post, the +ec#rities and 3&change Commission and the ,7I were
investigating 7rian, and a fl#rry of affidavits filed in the Inslaw Inc$ scandal acc#sed him of selling
bootleg copies of the comp#ter company!s casetrac)ing software 8P4O%I+9 to the intelligence
services of Canada, Israel, and Ira"$
7rian was referred to as /Cash/ in the intelligence comm#nity and reportedly had a close
relationship with the CI($ 2e was a highly decorated combat s#rgeon in the -ietnam war in the late
1966!s, allegedly wor)ing in the controversial Phoeni& Program$ This, according to a 199? /ired,/
premier iss#e, entitled /I.+L(, The Inslaw Octop#s/ by 4ichard L$ ,ric)er$ rote ,ric)er, /(fter
a stint in -ietnam, where he I7rianJ wor)ed as a combat physician in the #nit that s#pplied air
s#pport for Operation Phoeni&, 7rian ret#rned to California $$$/
In 19K6, 4onald 4eagan appointed 7rian director of the California 'epartment of 2ealth Care
+ervices$ 2e was only 5K and destined to remain a part of 4eagan!s inner sanct#m$ D$+$ and Israeli
intelligence so#rces lin)ed 7rian!s name to the sale of weapons to Iran in the 19B6!s$ /2e was
serving D$+$ intelligence people, / said (ri 7en%enashe, a former Israeli intelligence officer who
claims he met 7rian several times, once in Tel (viv$ 7rian allegedly had more to do with the
financial end of the transactions$
Other p#blications listed 7rian!s holdings in the rapidly developing biotechnology field$ The
hightech empire of 'r$ 7rian was a grab bag of fledgling companies involved in all the hot areas
lasers, cancer detection )its, bloodtesting prod#cts, "enetic en"ineerin", comp#ter programs,
telecomm#nications and investment databases$
One of 7rian!s companies, 2adron, Inc$ of ,airfa&, -irginia, which, incidentally, both %ichael
4iconosci#to and 4obert .ichols maintained Peter -iedenie)s was involved in, was a laser
man#fact#rer and comp#ter services company$
(ccording to 7ill 2amilton, president of Inslaw, 2adron had attempted to b#y Inslaw in 19B?$
'ominic Laiti, 2adron!s chairman at the time, had phoned 2amilton o#t of the bl#e and said
2adron intended to become a dominant vendor of software to law enforcement agencies$ o#ld
2amilton li)e to sell* 2amilton dem#rred$ /e have ways of ma)ing yo# sell,/ Laiti is said to have
replied$
Laiti, in an interview in 19BB with the +enate +#bcommittee on Investigations, said he didn!t
remember calling 2amilton$ .evertheless, 2amilton said he believes his re0ection of 2adron on that
day in 19B? triggered an attempt by the 'epartment of <#stice to p#t Inslaw o#t of b#siness, or at
least ban)r#pt the small, ashingtonbased software ma)er$
(t that time, Peter -iedenie)s was the administrator of the contract between Inslaw and the 'O<$
ithin a few months of 2adron!s call, the 'epartment of <#stice, citing contract violations, stopped
ma)ing payments on Inslaw!s P16 million deal to install P4O%I+ software in its 56 largest D$+$
attorney!s offices nationwide$ 8P4O%I+ stands for Prosec#tor!s %anagement Information +ystem$9
Inslaw, starved of cash, was forced into Chapter 11 ban)r#ptcy protection in 19BE$ 2amilton s#ed
the 'O< for theft of property in 19B6$
In ,ebr#ary 19BB, ,ederal 7an)r#ptcy Co#rt <#dge @eorge 7ason ordered the 'O< to pay Inslaw PK
million in licensing and legal fees$ The 'O<, 7ason r#led, had /stolen P4O%I+ from Inslaw
thro#gh tric)ery, fra#d and deceit,/ then tried to p#t the company o#t of b#siness$
The 'O< appealed 7ason!s r#ling, b#t it was #pheld$ 2owever in %ay, the D$+ Co#rt of (ppeals
reversed the decision on a technicality$ 2amilton believed 'r$ 7rian and his old crony, former
(ttorney @eneral 3dwin %eese, were behind the attempt to ban)r#pt and li"#idate Inslaw$ hen
Inslaw ref#sed to sell to 2adron, 2amilton believed the 'O< tried to ban)r#pt and li"#idate Inslaw
to force the sale of its assets, perhaps to 2adron, at firesale prices$
+everal 0o#rnalistic p#blications acc#sed 'r$ 7rian of profiting from the <#stice 'epartment!s theft
of the P4O%I+ software$ (ccording to a n#mber of so#rces, 7rian traveled the world d#ring the
mideighties, selling the data management program to intelligence and law enforcement agencies the
world over$
7rian!s role, if any, in the October +#rprise was less well p#blici;ed$ The primary so#rce th#s far for
the allegations that 7rian was involved, is former Israeli intelligence officer (ri 7en%enashe$
%enashe alleged that 3arl 7rian helped ma)e one of the first contacts between 4ep#blicans and the
government of Iran in 19B6$ 7en%enashe claimed 7rian accompanied 4obert C$ /7#d/ %c,arlane
to Tehran in late ,ebr#ary 19B6$ The trip came shortly after the .ew 2ampshire primary, when
insiders )new that there wo#ld be a 4eagan7#sh tic)et$
3arl 7rian and %c,arlane, then an aide to +enator <ohn Tower 84TQ9, allegedly contacted Iranians
with whom 7rian had cond#cted b#siness prior to the fall of the +hah$ (ccording to 7en%enashe,
one of these was %ehdi 7a;argan, onetime Prime %inister, and in ,ebr#ary 19B6 still closely
connected to the Iranian leadership$
(n old 19KE +acramento 7ee newspaper article, dated <an#ary 15, 19KE, reported that 3arl 7rian,
called the @eni#s 'octor by his friends, was o#t to get a little /of that %iddle 3astern oil money$/
The article !ent on to say that 'rian !as "helpin" to !rite a proposal on health care or
Iran#"
7rian, then at the Dniversity of +o#thern California, was wor)ing with +am#el Tibbetts of the
California L#theran 2ospital (ssociation, which in t#rn was wor)ing with a Chicago gro#p$ The
Chicago gro#p was not named and details of the proposal were not )nown$ It is significant that
7rian left his post one year before this proposal was written, in 19KA, as @overnor 4onald 4eagan!s
2ealth and elfare secretary$ It was not )nown whether the contract with the Iranian government
was ever cons#mated$
(nother interesting facet of 7rian!s bac)gro#nd incl#ded his relationship with &enator Terry
&anord 8'.$C$9$ Prior to his election, +anford had been the attorney representing 3arl 7rian in his
19BE ta)eover bid for Dnited Press International 8DPI9$ +anford was also instr#mental in winning
7rian an appointment to the board of '#)e Dniversity %edical +chool$ (t that time, +anford was
the president of '#)e Dniversity$
'r$ 7rian #ltimately directed his energies towards biological technology$ (nother of his companies,
7iotech Capital Corporation of .ew >or), became E6R owner of (merican Cytogenetics, which
was planning in 19B5 to create a su2sidiary to en"a"e in "enetic research# One notable investor
in 7iotech, when it went p#blic in 19B1, was Ed!in (eese# Today, (merican Cytogenetics in
.orth 2ollywood, California, cond#cts Pap tests for cervical cancer$ It also tests tiss#e samples for
cancer and related diseases$ +ales in 19BE were P?$A million$
2adron, of which 'r$ 7rian was a director, provided engineering and comp#ter cons#lting services,
along with telecomm#nications prod#cts$ +ales were P5E$K million in 19BE$ Clinical +ciences, Inc$
sells biochemical prod#cts #sed for diagnostic tests and antibody analysis$ 'r$ 7rian was also a
director of this company$ +ales in 19B6 were abo#t PA million$
GGGGGG
%ichael 4iconosci#to had stated that he believed 3arl 7rian held a financial interest in 7io14ad
Laboratories in 2erc#les, California$ I was #nable to locate 7rian!s name in 7oard directories, b#t
obtained some doc#ments on an O3% agreement between California Integrated 'iagnostics, Inc$, a
wholly owned s#bsidiary of the In,er@ene Company, 8/%an#fact#rer/9 a 'elaware corporation,
and 7io4ad Laboratories, Inc$ 8/C#stomer/9 a 'elaware corporation, which listed the terms #nder
which the man#fact#er wo#ld provide the c#stomer with vario#s prod#cts$
-ario#s e&hibits o#tlined the prod#ct price list, delivery sched#les, engineering specifications, etc$
hat made this agreement significant was a newspaper article p#blished in the +an ,rancisco
Chronicle on %ay ?1, 1991, entitled, /+$,$ ,irm ,aces To&ics Charges$/ ( criminal complaint had
been filed against a law firm, an investment ban)ing ho#se and several lawyers and financiers
involved with In,er@ene Company for abandoning its to&ic wastes after filing for ban)r#ptcy$
(ccording to an affidavit filed by the +olano Co#nty 'istrict (ttorney!s office at the ,airfield
%#nicipal Co#rt, after In,er@ene was evicted from the premises, a co#nty inspector fo#nd several
h#ndred containers incl#ding petri dishes and vials mar)ed /chlamydia, herpes, and 2+-5$/ %any
others contained /bacteria of #n)nown etiology$/
( -acaville newspaper reported that on 'ecember K, an environmental health inspector fo#nd ?6
EEgallon dr#ms of radioactive 7#tanol containing /beef m#cosa$/ They were improperly stored and
lac)ed labels showing content, ha;ard warning or the owner!s b#siness address$ ( follow#p report
made by the environmental health office noted that a 2alloween 1996 investigation into a smell was
traced to a door with a radiation warning on it$ The department had recommended that the lab doors
be sealed and the pipe opening sealed$
In all, the co#nty 3nvironmental 2ealth 'epartment had responded fo#r times to complaints abo#t
smells from the In,er@ene labs in the 7enicia Ind#strial Par) well before it sh#t down in ,ebr#ary$
One complaint listed persistent smells ca#sing na#sea, a problem also cited by others still wor)ing
in the area$
4ounded in *FG:, In4er6ene speciali1ed in DN% technolo"y, ,a/in" dia"nostic test /its or
%ID&, hepatitis and other diseases#
%y research led me to another article on 7ay (rea bio1labs$ In <#ne, 1991, the +an ,rancisco
3&aminer p#blished a story entitled, /@erm ar Lab (larms 7er)eley/ which noted the comm#nity
of est 7er)eley "!as ho,e to the Deense Depart,ent3s one and only supplier o antipla"ue
vaccine#" On 'ecember 5B, 1996, fo#r maintenance men made an #na#thori;ed entrance into a
room at C#tter 7iological which ho#sed >ersinia pestis, commonly )nown as /The 7lac) Plag#e,/
which once )illed a "#arter of the pop#lation of 3#rope 6E6 years ago$
There was no harm to the wor)ers and no release of the live bacteria, b#t if an accident had
occ#rred, all of 7er)eley wo#ld have been wiped o#t$
GGGGGG
It is impossible .OT to compare the two incidents in the +an ,rancisco bay area with the
ac)enh#t proposal to develop biological warfare vir#ses on the Caba;on Indian reservation in
Indio, California$ In order to develop vaccines, which so#nds innoc#o#s eno#gh, the vir#s m#st first
be created$ In the case of biological warfare vir#ses, the disease wo#ld have to be highly
sophisticated indeed, if it were to be #sed in military applications$ Certainly nothing that wo#ld be
easily recogni;able, if it escaped the laboratory, to a layman medical doctor in Indio, California, or
for that matter at any Indian reservation in the Dnited +tates$
(ny type of biological research on an Indian reservation wo#ld not be s#b0ect to scr#tiny by the
federal government beca#se Indian reservations are sovereign nations$ .evertheless, if a vir#s 'I'
escape a secret government installation at an Indian reservation, the reservation wo#ld provide an
ideally /isolated environment/ for f#rther st#dy 8by a government entity9 of affected s#b0ects or
victims #nder "#arantine$ .ot a very pretty pict#re$ >et this was the e&act nat#re of the proposal by
ac)enh#t to 'r$ 2arry ,air of the (rmy weapons division$
,or the first time, I began to notice vario#s /mysterio#s/ illnesses cropping #p in the media$ I!m
s#re there have been #nidentified diseases thro#gho#t history, b#t for the first time, I was conscio#s
of what was written abo#t them$
The first to capt#re my attention was the s#dden deaths of twelve .ava0o Indians in .ew %e&ico
and (ri;ona$ ( <#ne ?, 199?, 'epartment of 2ealth +ervices interoffice memorand#m distrib#ted to
p#blic health laboratory directors thro#gho#t California labeled the vir#s a /%ystery Illness in .ew
%e&ico and (ri;ona$/ The memo as)ed, /Is it in California too*/
On <#ne 5, 199?, .ew %e&ico officials had reported a total of 19 cases, s#mmari;ed as follows= Of
the 19 cases, 15 were .ative (merican Indians$ Twelve died$ (ll of the victims were residents
within a 166 mile area in northwest .ew %e&ico and .ortheast (ri;ona$ The symptoms incl#ded
f#lminant respiratory distress which )illed within ho#rs$ There was /.O I'3.TI,I(7L3
C(D+3$/ This was printed in capital letters$
Dnder /3tiology/ 8origin9, the memorand#m noted, /IThe illnessJ remains a mystery despite
e&tensive testing at Dniversity of .ew %e&ico 2ospital, .ew %e&ico 'epartment of 2ealth, and
C'C$ If etiology were plag#e, anthra&, t#laremia, some cases sho#ld have been identified by
c#lt#res:stains $$$/
Oddly, nationwide media printed stories stating that the illnesses were ca#sed by rat droppings, yet
the act#al doc#ments from the 'epartment of 2ealth +ervices in 7er)eley, California, confidentially
given to me by a laboratory director in <#ne 199?, mentioned nothing abo#t rat droppings$
I later read abo#t a mystery illness in TI%3 maga;ine, .ovember 55, 199? iss#e entitled, /The @#lf
@as %ystery,/ which reported that (merican troops in the Persian @#lf, #pon ret#rning home, were
complaining of chronic diarrhea, aches in all the 0oints, and diffic#lty breathing$ +everal veterans
and their families testified before a congressional committee that the 'efense 'epartment had
ignored their complaints, and the -eterans (ffairs 'epartment downplayed the affair$ The veterans
themselves were convinced they had been e&posed to /diseaseca#sing chemical agents/ while in the
Persian @#lf$ 3ighttho#sand veterans registered their symptoms with the D$+$ government, th#s
labeling the disease /@#lf ar +yndrome/ 8@+9$
Dltimately, the disease was determined by %a0or @eneral 4onald 7lanc), commander of the alter
4eed (rmy %edical Center, to be /m#ltiple chemical sensitivity,/ syndrome$ ( board of in"#iry was
created headed by <osh#a Lederberg of 4oc)efeller Dniversity, a .obelpri;ewinning e&pert on rare
and emerging diseases$ 7#t, noted TI%3, /It is #p to the Pentagon to bridge the credibility gap that
seems to have spro#ted over the strange new syndrome$/ It was not #ntil 1996 that the Pentagon
admitted @+ may have been ca#sed by e&pos#re to bombed chemical:biological plants in Ira"$
7y far the most provocative incident occ#rred in ,ebr#ary, 199A$ The +po)esman4eview, o#t of
+po)ane, ashington, printed a story on (#g#st 9, 199A, entitled, /-ictim of %ysterio#s ,#mes
+ee)s Investigative 4eports$/ In 4iverside, California, the county in !hich the Ca2a1on
IndianJWac/enhut acility is located, 'r$ <#lie @orchyns)i, an emergency room doctor, was
overcome by mysterio#s f#mes while e&amining a woman who later died$
/This is a bona fide, gen#ine medical mystery, and we intend to solve it,/ said 4#ssell +$ C#ssman,
attorney for 'r$ @orchyns)i$ @orchyns)i s#ffered from osteonecrosis, avasc#lar necrosis of bone,
posttra#matic stress disorder, shortness of breath, restrictive l#ng disease and other ailments, as a
res#lt of e&pos#re to the dying cancer patient on ,ebr#ary 19th$ Coincidentally, her symptoms
matched those of @+$
Later, in the same newspaper, dated +eptember ?, 199A, another article emerged regarding the
4iverside mishap$ The bi;arre episode had sent si& emergency room wor)ers to hospitals after being
e&posed to f#mes emitting from patient @loria 4amire;!s blood samples drawn on ,ebr#ary 19,
199A$
(ccording to the state!s 1Epage report, 11 people reported smelling an #n#s#al odor after blood was
drawn from 4amire;$ (fter five collapsed and the emergency room was evac#ated, 5? people
complained of at least one symptom, most commonly headache, di;;iness, and na#sea$ %ore
serio#s complaints incl#ded m#scle spasms and breathing disr#ptions$ /'espite e&tensive
epidemiologic, to&icologic and environmental investigations, the ca#se of the o#tbrea) of
symptoms among emergency room staff members $$$ remains #n)nown,/ the report concl#ded$
'r$ @orchyns)i!s lawyer stated that it co#ld only be a to&in$ /It!s physically impossible for <#lie to
have had the symptoms, and not 0#st the symptoms, the laboratory findings and test res#lts that
showed $$$ clearly 'r$ @orchyns)i was poisoned that day$/
7#t epidemiology e&perts co#ld find no c#lprit to e&plain the bi;arre episode$ The 'epartment of
2ealth +ervices #ltimately described the incident as an o#tbrea) of /mass sociogenic illness,/
perhaps triggered by an odor$
I co#ld not help wondering if the deceased @loria 4amire; was an Indian, or had ever been on the
Caba;on reservation in Indio* I later learned she had been receiving e&perimental cancer treatments
at a clinic in %e&ico$
<$%$, Ted @#nderson!s live1in partner, on more than one occasion had noted that she held in her
possession a photo"raph o 6underson and &ir Denis =endall, the 'ritish (RIH oicer !ho
o!ned 2ioRla2s in Los %n"eles, standin" in ront o a (e5ican cancer clinic$ (ccording to <$%$,
the photo had been #sed in an advertisement see)ing n#rses to wor) at the clinic$ itho#t a copy of
the photo, I was #nable to determine if it /might/ be the same clinic which @loria 4amire; attended
prior to her death$
GGGGGG
In ,ebr#ary 199?, I was contacted by a U#& Custo,s a"ent who was cond#cting an in"#iry into the
whole Inslaw, Peter -iedenie)s, ac)enh#t affair$ The man had flown in to California from bac)
east to interview %i)e and 7obby 4iconosci#to and other witnesses associated with the Inslaw
case$ +omeone, whom he wo#ld not identify, advised him to contact me$
On ,ebr#ary Eth, he and his partner drove to my home in %ariposa and spent the day$ I provided
him with an affidavit relative to 4iconosci#to!s attempted trade into the itness Protection
Program$ The aidavit contained ,ostly dru"Rrelated inor,ation on The Co,pany and
Ro2ert 'ooth Nichols3 connection to (ichael %22ell +DO8- and the Cali Cartel# The agent also
obtained a tape1recorded statement, #nder oath, relative to my findings and left with an armload of
doc#ments$ +T!o years later, in *FF<, %22ell !as indicted or ,oney launderin" or the Cali
Cartel and dru" related char"es-#
2e called fre"#ently after that 8199?9, once from a phone booth in the dead of night after visiting
Langley, -irginia$ e s#bse"#ently str#c) #p an investigative collaboration of sorts$ On +eptember
?, 199?, I received a call ro, hi, in )al, City, 4lorida# $e had intervie!ed Ro2ert Chasen,
or,er E5ecutive 7ice )resident, &yste,s and &ervices 6roup, o Wac/enhut Corporation in
Coral 6a2les# Chasen, IA, !as still senior consultant at the 4lorida acility, b#t was allegedly
dying of cancer and weighed less than 166 po#nds at the time of the interview$
'ecause he +Chasen- had once 2een Co,,issioner o Custo,s in Washin"ton D#C#, he elt a
rapport !ith this youn" a"ent and spo/e candidly a2out his e5perience !ith Wac/enhut in
Indio#
Of significance, was Chasen!s confirmation of the horrendo#s properties of the /vir#s/ which he
enco#ntered at the Indio facility$ $e said, "Wac/enhut !as runnin" a,uc/#" Ro2ert Nichols
and )eter Oo/os/y had atte,pted to sell the 2iolo"ical !arare technolo"y +developed in co!
uterises- throu"h Wac/enhut, usin" Ro2ert 4rye, 7ice )resident o the Indio acility, as the
ront ,an#
(ccording to Chasen, 4rye !ent 2ehind his >Chasen3s? 2ac/ in acilitatin" the pro0ectD !hen
Chasen learned o the pro0ect, he shut it do!n# 8Chasen s#pervised the Indio facility from Coral
@ables, ,lorida$9 7eca#se of the pro0ects #nderway at the Caba;on reservation, Chasen chose not
to step oot on the property, 2ut instead ,et !ith the Indio e5ecutives in )al, &prin"s#
In other respects, Chasen was not so candid$ Tho#gh the C#stoms agent said Chasen /said a lot of
derogatory things abo#t ac)enh#t in Indio,/ he did not admit to )nowing Peter -iedenie)s$ The
agent!s investigation had led him to believe that the P4O%I+ software (+ stolen, and -iedenie)s
(+ involved in the theft, b#t he did not have eno#gh evidence to ta)e his case to co#rt$
Chasen was evasive on the s#b0ect of P4O%I+, tho#gh his bac)gro#nd wo#ld indicate that he m#st
have been )nowledgeable abo#t it$ 2e had been a +pecial (gent in the ashington '$C$ ,ederal
7#rea# of Investigation from 19A? to 19E5$ ,rom 19E5 to 196B, he was -ice President and
President, respectively, of ITT Comm#nications +ystems in Chicago, Illinois and Param#s, .ew
<ersey$ 2e became Commissioner of D$+$ C#stoms in ashington '$C$ from 1969 to 19KK the same
time span that Peter -iedenie)s was in and o#t of C#stoms$
I called 'ic) 4#ssell 8a#thor of /The %an ho Cnew Too %#ch/9 to act as a /c#to#t/ for me and
interview Chasen$ (t that point, I didn!t want to e&pose myself to ac)enh#t, so 4#ssell agreed$
hen 4#ssell called bac), he said Chasen didn!t tr#st 4obert 7ooth .ichols$ Wac/enhut had "run
a chec/" on Nichols and couldn3t learn anythin" a2out his 2ac/"round# This had bothered
Chasen, b#t, he said, 4obert ,rye and 'ic) ilson were /da;;led/ with .ichols$
Chasen 2elieved Nichols !or/ed or the CI%, said he was a /slippery g#y,/ and co#ldn!t
#nderstand why ,rye and ilson were da;;led by .ichols for s#ch a long time$ 4eportedly, @eorge
ac)enh#t li)ed ,rye and 'ic) ilson, b#t did not tr#st 4iconosci#to or .ichols$ %ichael
4iconosci#to had been introd#ced to Chasen as a /specialist engineer in weapons$/
Chasen ac)nowledged the biological technology introd#ced by .ichols and Fo)os)y, saying it had
been presented to him as something that co#ld /create anything from chic)en so#p to long range
missiles$/ When he learned o the properties o the technolo"y, he halted it i,,ediately# When
pressed or urther details, he added reluctantly, "It !as the /ind o thin" your ,ind erases#"
4egarding the Caba;ons, Chasen said he felt an affinity with (rth#r elmas, Chairman of the
Caba;on 7and of %ission Indians, beca#se his IChasen!sJ wife is part Chero)ee$ 2e noted that he
sympathi;ed with their sit#ation and wanted to protect them$
Perhaps he protected them more than he reali;ed when he sh#t down the ac)enh#t proposal to the
(rmy to develop biological vir#ses 8and vaccines9 on the Caba;on reservation$
GGGGGG
One year later, on +eptember E, 199A, TI%3 maga;ine p#blished an article on page 6? entitled, /(
'eadly -ir#s 3scapes,/ in which a >ale Dniversity researcher was e&posed to the deadly 7ra;ilian
/+abia/ vir#s when a container spinning on a highspeed centrif#ge crac)ed, ca#sing the potentially
lethal tiss#e to spatter$ ,ort#nately, the researcher was wearing a lab gown, late& gloves and a mas),
as re"#ired by federal g#idelines$
3very s#rface of the area was scr#bbed with bleach, all instr#ments were sterili;ed, then wiped
down again with alcohol$ 2aving decided the danger was over, he didn!t bother to report the
accident, and a few days later he left town to visit an old friend in 7oston$ +oon after the researcher
ret#rned to >ale, he bagan r#nning a fever that reached 16? ,$
(n e&perimental antiviral dr#g event#ally stopped the illness, b#t the man had e&posed five people,
incl#ding two children, before being confined to a hospital isolation ward, and another KE or so
healthcare wor)ers after that$
The +abia vir#s is partic#larly frightening beca#se it )ills in s#ch a grisly way$ Characteristic
symptoms are high fever, #ncontrolled bleeding in virt#ally every organ and finally shoc)$ The liver
t#rns yellow and decomposes$ 7lood can lea) from literally every bodily orifice, incl#ding the eyes
and the pores of the s)in$ &a2ia !as never seen 2eore *FFA, !hen a e,ale a"riculatural
en"ineer chec/ed into a hospital in &ao )aulo, 'ra1il, !ith a hi"h ever$ ithin days she was
dead$
,ort#nately, in the >ale Dniversity incident, none of the potential victims died or showed any
evidence of symptoms$ ( boo) and movie on the +abia vir#s!s co#nterpart, the lethal 3bola vir#s
from Central (frica, which is as deadly and as gr#esome as (I'+, yet has an inc#bation period of
only one wee), was #nderway at the time and was later released in 199A$
The boo), /The 2ot Fone,/ described a victim who contracted 3bola$ TI%3 wrote, /2is eyes t#rn
red and his head begins to ache$ 4ed spots appear on his s)in and, spreading "#ic)ly, become a rash
of tiny blisters, and then the flesh rips$ 7lood begins to flow from every one of the body!s orifices$
The victim co#ghs #p blac) vomit, slo#ghing off parts of his tong#e, throat and windpipe$ 2is
organs fill with blood and fail$ 2e s#ffers sei;#res, splattering vir#ssat#rated blood that can infect
anyone nearby$ ithin a few days the victim dies, and as the vir#s destroys his remaining cells,
m#ch of his tiss#e act#ally li"#ifies $$$/
The 3bola vir#s, fo#nd in the rainforest regions of Central (frica, once ca#sed an o#tbrea) in 19K6
thro#gh villages near the 3bola 4iver in Faire, )illing as many as 96R of those infected$ +#ch
dangero#s vir#ses may seem a distant menace, wrote TI%3, b#t /The 2ot Fone/ details a 19B9
3bola crisis that occ#rred in the 4eston, -irginia Primate H#arantine Dnit, r#n by a company that
imports and sells mon)eys for #se in research laboratories$
hen an #n#s#al n#mber of mon)eys originating from the Philippines died, tiss#e samples were
sent to a D$+$ (rmy research center$ There a technician identified the strands as either 3bola Faire
or something very close$ 3ven more alarming, the vir#s fo#nd in 4eston, -irginia, #nli)e the
(frican one, co#ld be transmitted thro#gh the air$ ,rantic phone calls were made to -irginia health
a#thorites and to the Centers for 'isease Control in (tlanta$ (n (rmy team, wearing space s#its,
went into the 4eston b#ilding and )illed AE6 s#rviving mon)eys, then placed them in plastic bags
for safe disposal$ 7efore the b#ilding was boarded #p, the (rmy sterili;ed every s"#are inch of the
interior$ .o h#mans were infected with the vir#s, b#t 4ichard Preston, the a#thor of /The 2ot
Fone,/ wrote, "% tiny chan"e in its "enetic code, and it ,i"ht >have? 1oo,ed throu"h the
hu,an race#"
( rival 199E film on the same s#b0ect entitled, /O#tbrea),/ directed by olfgang Peterson, also
foc#sed on the 3bola vir#s$
C$%)TER *9
It was time to interview 4obert 7ooth .ichols$ I was comm#nicating reg#larly with Ted @#nderson
and one day, on an imp#lse, I as)ed him for .ichols!s telephone n#mber$ @#nderson hesitated, then
gave me the telephone n#mber of a /relative/ of .ichols! in Los (ngeles, stating that he really
co#ldn!t give o#t 4obert!s home n#mber witho#t first cons#lting him$
I called the relative and left a message for .ichols to ret#rn my call$ The call came bac) on
'ecember ?1, 1991$ There was an intrig#ing international flavor to .ichols! voice$ The tone was
hostile b#t polite, and in"#iring$ 3ssentially, .ichols wanted to )now why I was comm#nicating
with %ichael 4iconosci#to*
I e&plained to him that I was writing a boo) on government sanctioned dr#g traffic)ing and %ichael
had information to offer on local corr#ption$ '#ring the conversation, which lasted abo#t AE
min#tes, .ichols admitted that he wor)ed for ,I'CO and #sed the code word /a Latteral/ for the
operation in Lebanon$
The following are some e&cerpts=
C%= /'o yo# )now anything abo#t %ichael 4iconosci#to in Lebanon*/
.ichols= /.ever$/
C%= /2e I%ichaelJ tal)ed abo#t an interesting operation in Lebanon$/
.ichols= /hat was it called, the operation* I!ve heard of "#ite a few pro0ects in Lebanon$ If I!ve
heard of it, I!ll tell yo#$/
C%= /ell, what was the code name of the one that yo# heard abo#t*/
.ichols= /a Latteral$/
C%= /a Latteral* (nd what type of operation was that*/
Nichols: "Well, it !as tradin" in t!o directions# .ow what!s yo#rs*/
C%= /+ame thing$/
.ichols= /a Latteral* >o#rs is the same name*/
C%= /.o$ I!ve never heard that name before$/
.ichols= /ell, what was the code word of the one %ichael said he was involved in*/
C%= /I wo#ld have to go over all of my notes, to tell yo# the tr#th$ It didn!t seem important at the
time, so I don!t have it off the top of my head $$$/
.ichols= /hat the pro0ect was, I can tell yo# very clearly, there!s nothing secret abo#t it now, was
to develop an agenda whereby all sides, the %#slim and the Christian sides, wo#ld come to an
agreement on a redevelopment pro0ect to where their respective areas wo#ld have the same
capitali;ation, and the same benefit to stop the fighting$/
C%= /'id this incl#de reb#ilding of the infrastr#ct#re of 7eir#t*/
.ichols= /-ery definitely$/
C%= /'id this have anything to do with ,I'CO*/
Nichols: "Uh, 4IDCO !as involved in it, ri"ht# That was an effort by that company, as I
#nderstood it $$$ the pro0ect was to ma)e s#re that both sides developed b#ilding programs that were
initiated conc#rrently and the development was fair and e"#itable to all sides, to stop the fighting$/
8I wondered why an /arms dealer/ wanted to stop the fighting in Lebanon*9
C%= /as there ever any s#bsidiary of that corporation called 3#ramae*/
.ichols= /I never heard that name before$/
C%= /Ted @#nderson gave me a h#ge man#al on The Octop#s $$$/
.ichols= /In my opinion, to research anything of that magnit#de yo# are loo)ing at 11 it wo#ld
re"#ire a lot of money and a lot of travel and a lot of patience$ I don!t thin) Ted @#nderson )nows
anything, personally$ 2e!s domestic$ It!s not his area$/
C%= /'id yo# operate a tele& company with him d#ring the Olympic @ames*/
.ichols= /(bsol#tely not$ ( tele& company$ (bsol#tely not$ Oh, 0ee;$ 'id yo# as) Ted @#nderson
that*/
C%= /ell, no, I didn!t $$$/
.ichols= /ell, yo# can!t be shy$ >o# have to as) "#estions, or else how do yo# )now*/
C%= /hat did 'anny Casolaro spend so m#ch time on the phone with yo# for*/
.ichols= /'anny #sed to as) me different things$ 7#t 'anny was more into the names in Paris and
+wit;erland and 11 'anny was investigating the whole international sit#ation$ >o# have to spend a
lot of money and do a lot of traveling$ 'anny had said to me that he had a whole agenda wor)ed
o#t, yo# )now, where he was going to go and who he was going to see$ (nd I mean it was literally a
global trip $$$/
.ichols said he believed 'anny was m#rdered and did not commit s#icide$ 2e believed 'anny!s
death had to do with the international scene, someone 'anny had contacted overseas$
I as)ed him, /'o yo# s#ppose his death had anything to do with the <#stice 'epartment*/
.ichols answered, /I wo#ld say, NTime will tell$ Time will tell$!/
I pressed .ichols abo#t his civil s#it against ,7I agent Thomas @ates=
.ichols= /The activities that I!ve been involved with, I can tell yo# very clearly, an eort !as ,ade
or ,any years to 2eneit a lot o people that !ere involved in the corporation# That effort was
destroyed by certain moves Iby agent @atesJ$ (nd it ca#sed a great deal of hardship to myself and
"#ite a few other people who are very angry abo#t it$ (nd we!ll deal with that matter in co#rt$/
C%= /hat was @ates investigating*/
.ichols said he wrote two stories for some Italian movie prod#cers$ "They !ere @sensitive3 stories,
a2out overseas# What I did, !as I too/ t!o little, very 2rie parts o t!o stories to copyri"ht in
the United &tates# (nd so they!re very dil#ted, b#t eno#gh for the copyrights$
/That!s when I met the g#y from Dniversal Ist#diosJ, beca#se he wanted the stories$ (nd the ,rench
wanted the stories $$$ in 19BK, b#t the stories haven!t changed, they!re still pertinent$/
@ates had overheard the /pertinent/ parts on the wiretap and initiated an investigation$ I made a
mental note to try to convince .ichols at a later date to provide me with the man#scripts$ 7#t I
didn!t want to p#sh him d#ring o#r first conversation$
GGGGGG
I later as)ed a friend in ashingto '$C$ to research .ichols! copyrights at the Library of Congress$
There were indeed two stories copyrighted by 4obert 7ooth .ichols #nder the pse#donym of 4$.$
Le'evoilier$ Perhaps he was #naware that a cross1reference wo#ld reveal his tr#e identity$
The 561page man#script entitled /(cceptable Cas#alty,/ essentially o#tlined gays and I$-$ dr#g
#sers as targets of bio1war by a cabal of military intelligence officers$ In the story, a secret file, /C1
9111T#hne)aw,/ revealed the origin of the first (I'+ infection$ ,ield research dated .ovember 15,
19KK originated from a 7ay (rea laboratory destroyed by fire in 'ecember 19KE$ (ssorted bio1labs
were mentioned, one in Palo (lto, California$ The hero of the story obtained the secret c#re from
/the Chosen Ones/ and escaped to +ingapore with his family$
Interestingly, the names of those involved incl#ded />#ta)a O)imoto/ and /Lawrence Fo)os)y,/ the
last names of which match those listed on .ichols! /real life/ corporation, %eridian International
Logistics 8%IL9$
.ichols also copyrighted a 961page <ames 7ond type treatment entitled, /'ecision of Conscience,/
which described state1of1the1art electromagnetic technology 8la#nchers9 #sed to demolish a two1
story concrete b#ilding$ I later fo#nd the words, /'ecision of Conscience,/ written in 'anny
Casolaro!s handwritten notes also$
.ichols! secret desire to write abo#t his e&ploits in the CI( had led him to contact <ac) -alenti,
president of the %otion Pict#re (ssn$ of (merica, thro#gh his 8then9 corporate partner 3#gene
@ia"#into$ The three met at the 7everly 2ills 2otel where .ichols attempted to sell -alenti
man#scripts disclosing top secret CI( technology$
.ichols later said -alenti ref#sed the man#scripts beca#se they contained /classified national
sec#rity information$/ 8-alenti once served as assistant to President Lyndon 7$ <ohnson9$
GGGGGG
'#ring several phone conversations with reporter <onathan Littman, I learned that he had
comm#nicated with 'anny Casolaro on a reg#lar basis prior to 'anny!s death$ (t the time, I
wondered why Littman hadn!t written a story on 'anny, since he was one of the few reporters to
have spo)en e&tensively with him*
I wo#ld have that answer soon eno#gh$ %y confidence in Littman nearly cost me my life$ (n
incident which I am abo#t to relate forced me to doc#ment the following events, which I titled,
"7orte5," and su2seBuently turned over to 8ohn Cohen, investi"ator or the $ouse 8udiciary
Co,,ittee on Insla!# Cohen had strenuously advised ,e to send it to hi, as he eared or ,y
lie# "7orte5" !as also the "aidavit" I supplied to the Custo,s %"ent !ho intervie!ed ,e in
4e2ruary *FF:#
'#ring the co#rse of o#r conversations, Littman had noted to me that he had a close relationship
with 4obert 7ooth .ichols, Peter Fo)os)y and 7en Cal)a of The Company$ Litt,an also veriied
to ,e that he !as in act, =al/a3s cousin, b#t he 8Littman9 was a secretive, noncomm#nicative
individ#al and I didn!t press him for e&planations$ Cal)a was c#rrently serving time in prison for
possession of 966 po#nds of methamphetamine$
Littman did, however, confide that Cal)a hated %ichael 4iconosci#to beca#se 4iconosci#to was
responsible for Cal)a!s imprisonment$ I described how former (ssistant D$+$ (ttorney 7rian
Leighton appeared to have per0#red himself at %ichael!s trial, and as)ed Littman!s opinion of that$
Littman stated simply that it didn!t matter if Leighton had per0#red himself, nothing sho#ld be done
to get %ichael o#t of 0ail$ There sho#ld be no mistrial or ac"#ittal or anything of that nat#re beca#se
%ichael was probably g#ilty of the crime for which he was incarcerated$ I didn!t p#rs#e the matter
f#rther at that point$
%eanwhile, Littman offered to arrange an interview with 4obert 7ooth .ichols and Peter Fo)os)y
for me$ In e&change for this, he wanted me to arrange an interview with Tony Patterson and
4aymond Lavas 8Ted @#nderson!s former forensics e&pert9 thro#gh 7obby 4iconosci#to$ Tony
Patterson had allegedly served with 4obert 7ooth .ichols in -ietnam, and 4aymond Lavas had
access to %ichael 4iconosci#to!s hidden comp#ter tapes$
7oth men were watching over 7obby 4iconosci#to while %ichael was in 0ail$ I said I wo#ld do the
best I co#ld to arrange the interviews$ 7obby was the only person comm#nicating with these
individ#als and only she )new how to contact them$ I never mentioned to Littman that I had been
comm#nicating with 4obert .ichols on the phone$ I can!t say what my reasoning was at the time$
Int#ition, I s#ppose$
7obby 4iconosci#to rel#ctantly agreed to set #p the interviews with Patterson and Lavas, tho#gh
she pointed o#t that neither man tr#sted 0o#rnalists$ I naively ass#red her that Littman wo#ld be
o)ay$ It is noteworthy that Littman had been comm#nicating with 7obby and %ichael for several
months prior to my introd#ction to them, yet, they didn!t completely tr#st him at that stage of their
relationship$ hen they learned of his relationship with 7en Cal)a, they didn!t tr#st him at all$
3li;abeth 4iconosci#to!s fifth birthday party was sched#led to be celebrated at the La %irada
@ateway 2oliday Inn on ,ebr#ary 1A, 1995 at 11 a$m$$ 4eportedly, Patric) %oriarty and %arshall
4iconosci#to had a financial interest in the hotel and they were paying the bills$
Littman and I decided that wo#ld be a good wee)end to confidentially interview 4obert 7ooth
.ichols and Peter Fo)os)y in Los (ngeles, and it wo#ld give Littman the opport#nity to meet
7obby 4iconosci#to facetoface$ e wo#ld also s"#ee;e the Patterson:Lavas interviews in d#ring
that time$
%ichael 4iconosci#to was cooperative abo#t allowing his wife to be interviewed by Littman
beca#se it wo#ld give the 0o#rnalist a close#p view of %ichael!s /family/ in action$ Tom Olmstead,
%ichael!s lawyer, was sched#led to attend the birthday party as was Patric) %oriarty and %arshall
4iconosci#to$ (fter the l#ncheon celebration, the children and those ad#lts who wanted to tag along
wo#ld go to 'isneyland$
%ichael 4iconosci#to had d#al motives for wanting Littman in attendance$ Olmstead had been
instr#cted to press#re Littman to reveal /who/ had sent the incriminating 19B? /dr#g/ transcript to
the prosec#ting attorney in %ichael!s trial 1 only Littman )new if it had been 7en Cal)a or Littman
himself$ 8Littman had obtained it originally from Peter Fo)os)y9$
On T#esday evening, ,ebr#ary 11th, Littman confirmed a Th#rsday appointment with 4obert 7ooth
.ichols$ 2owever, he stressed that .ichols had insisted that the meeting be )ept absol#tely
confidential$ .o one in media or %ichael 4iconosci#to!s circle was to )now of the interview$
I agreed, b#t e&plained that I had already mentioned briefly to %ichael that I /planned/ to interview
.ichols at some f#t#re date$ %ichael had said he #nderstood the importance of interviewing
.ichols and he wo#ld cooperate$ I even as)ed %ichael to notify Tony Patterson and 4aymond
Lavas, via 7obby, that Littman and I wo#ld be interviewing them d#ring o#r trip to Los (ngeles$
Littman said that was alright, b#t I was to tell no one else associated with %ichael$ I noted to
<onathan that he might want to inform .ichols that I had already mentioned to %ichael that I
/intended/ to interview .ichols at some time in the f#t#re$ Littman said leave it at that$ .o problem$
Littman spent the night at my home in %ariposa on ednesday night$ The following morning, on
,ebr#ary 1?th at K a$m$, we departed for Los (ngeles$ +trangely, at the last moment, Littman
decided to follow #s to Los (ngeles in his own car$ I rode intermittently with Littman, then with my
h#sband, d#ring the fiveho#r drive$ (t ho#r intervals, Littman p#lled off the freeway to report to
.ichols 1 and to a police officer in +an ,rancisco whom he did not identify, b#t described as his
/sec#rity$/
(t noon, we arrived at .ichols! +herman Oa)s apartment b#ilding$ Littman p#nched in T6B and
spo)e briefly to .ichols, who b#;;ed the door open$ (t .ichols! apartment, T16?, Littman pointed
o#t the electronic sec#rity system on the front door, then at the last moment, instr#cted my h#sband
to wait in the van$ e owned a 1991 Chevrolet conversion, so he napped and watched television the
rest of the afternoon$ Towards the end of the fiveho#r meeting, .ichols invited him #p for coffee
and ca)e$
Peter Fo)os)y and his wife 8former %ayor of Indio9, 4obert 7ooth .ichols and his wife, 3llen,
were present inside the apartment$ Littman had previo#sly warned me that the apartment was
electronically wired to detect any listening devices I might be wearing on my body$ I said I had
none$
Littman had also warned me that I wo#ld be seated on a co#ch ne&t to a st#ffed lion which had a
tape recording device 8b#g9 #nder its tail$ +#re eno#gh, when I entered the apartment, I was seated
on a white co#ch near the lion$ ( giant anaconda s)in h#ng stretched across the wall$ 3#ropean and
(frican relics decorated the apartment$ It was instantly obvio#s that .ichols and his wife didn!t live
in the apartment, it was a meeting place$
.ichols smo)ed cigarettes and as a res#lt, )ept the #pstairs windows in the apartment open,
allowing a cool ,ebr#ary bree;e to flow thro#gh the apartment$ .erves, and the cool air ind#ced me
to )eep my light coat on d#ring most of the interview$ (t first, Peter Fo)os)y, a friendly, congenial
man, did most of the tal)ing$ (s the conversation warmed #p, .ichols entered intermittently, then
too) over completely$
( formal go#rmet l#ncheon was served of c#rried so#p, salmon and t#r)ey finger sandwiches, wine
and homemade strawberry ca)e$ 3llen .ichols was the perfect hostess, b#t rarely said a word$
(t one point d#ring l#nch, .ichols instr#cted 3llen to get the camera and snap a front and side
pict#re of me, which she carried o#t silently$ There was no e&planation given for the pict#re$ (fter
l#nch, .ichols often stood or sat at the open window while he tal)ed and smo)ed$ It was cold and
rainy, and I wondered why he )ept glancing down at my van$ Littman fre"#ently left the room to
attend to something in the bac) of the apartment$ I was #nable to determine what he was doing, b#t
noticed that he too) no notes and never once 0oined in the conversation$
.ichols was aptly described in maga;ine articles as /Clar) @able witho#t the ears$/ 7#t his
mannerisms were intense, sim#ltaneo#sly controlled and dramatic$ I int#itively sensed the violence
in him, b#t only thro#gh his eyes$ 2e st#died me intently as I spo)e, ma)ing every effort to throw
me off balance by contin#o#sly correcting me$ 2e also wo#ld not spea) while I wrote on my
notepad, stopping mid1sentence each time I p#t pen to paper$
It wor)ed in some cases, b#t I finally rallied$ I was in 2I+ apartment, with women present, tho#gh
they were b#sy in the )itchen, and my h#sband was par)ed o#tside the apartment$ I was certainly in
no physical danger, so I gathered myself and bl#ntly as)ed the "#estions I had driven ?E6 miles to
as)$
Reerrin" to the U#&# currency and "old transers into &!iss 2an/ accounts, Nichols ad,itted
that he !as contracted 2y the "overn,ent to "handle" the ;9 Co2ra helicopters !hich
(ichael had said !ere stored in Europe, then shipped to IraB via North =orea#
(t first he wo#ld not say what he did with the helicopters, b#t then revealed the entire operation$
8ohn 7ander!er/er at Intersect Corporation in Irvine, Caliornia, had 2een the CI%
acilitator# It !as a "classiied" CI% operation, thou"h Nichols !ould not "ive the na,e o the
White $ouse oicial 2ehind it# I assu,ed it !as (ichael (c(anus, 2ut didn3t push it# 6lenn
&hoc/ley had 2rou"ht Nichols into the operation# (t least I had verbal confirmation of the
operation, and #n)nown to .ichols, I had the entire paper trail$
4egarding 'anny Casolaro, .ichols and Fo)os)y both insisted that 'anny had been /m#rdered$/
'anny!s boo) research had progressed to a point where he was loo)ing overseas for answers and
.ichols had offered to direct him to certain connections that wo#ld have completed his
investigation$
.ichols confirmed that he was privy to 'anny!s findings on a reg#lar basis, b#t chose not to
elaborate on the content of his last conversation with 'anny$
I contin#ed to press him for information on the /ca#se/ of 'anny!s deathL what had he discovered
that ca#sed him to be m#rdered* .ichols responded defiantly that he )new why 'anny died, b#t he
said /no 0o#rnalist or investigator had done eno#gh wor) to be deserving of that information yet$/
It was not #ntil the end of the meeting, when we had established a tentative rapport, that .ichols
offered to ta)e %3 to 3#rope, as he had 'anny, to find the answers to my investigation of the
Octop#s$ 7#t, he stressed it wo#ld be very e&pensive and I wo#ld be gone for several months$ I
remember the probing loo) on his face as he made the offer$ I had nodded slowly, stating I wo#ld
give it some tho#ght$ I wondered fleetingly if he was trying to recr#it me into the CI(* Or create a
new %anch#rian Candidate*
4egarding the stolen P4O%I+3 software, .ichols said he believed %ichael 4iconosci#to had been
contracted by the government to /derail/ 7ill 2amilton at Inslaw$ (ccording to .ichols, %ichael
'I' have the P4O%I+ software codes$ %lle"edly, )eter Oo/os/y3s "2rother" sold copies o the
sot!are to Israel# Oo/os/y nodded in a"ree,ent at that state,ent#
Nichols said (ichael $%D to /no! he !as "oin" to 2e arrested or operatin" a ,eth la2, 2ut
he +(ichael- thou"ht the 4'I !ould 2ail hi, out a"ain# &o,eone na,ed +%d,iral- %l Ren/in
alle"edly "covered (ichael3s dru" act#"
I never )new what that meant and didn!t p#rs#e it, as I wasn!t there to learn abo#t %ichael
4iconosci#to$ While !e !ere on the su20ect o dru"s, I too/ the opportunity to Buestion
Nichols3s involve,ent# I lead in 2y descri2in" the dru" situation in (ariposa county, addin"
that the entire country see,ed to 2e econo,ically dependent on the dru" trade# Nichols
nodded in ull a"ree,ent, then noted that Europe3s econo,y !as co,pletely dependent on
dru" ,oney# Without dru"s, 2an/s and !hole countries !ould collapse inancially#
e moved into another area of disc#ssion$ Peter -iedenie)s was an associate of 3arl 7rian,
according to .ichols$ Other names were tossed aro#nd s#ch as +enator Terry +anford, a family
friend of 3arl 7rian$ +anford was .ichols! lin) with 3arl 7rian$ (nd, noted .ichols, -iedenie)s was
associated with 3arl 7rian thro#gh 2adron Corporation$
%lle"edly, all o these ello!s had ,et at Nichols3 "AAI" )laya Del Ray condo at one ti,e or
another, includin" 7iedenie/s#
It is noteworthy that at the time of this meeting, neither .ichols or I co#ld have foreseen the
importance of this information$ The iss#e of -iedenie)s! connection with 3arl 7rian or Terry
+anford, or even .ichols himself, had not been raised p#blicly yet$ (t the time, I didn!t place any
partic#lar significance on .ichols! relationship with 3arl 7rian or Peter -iedenie)s, I 0#st too) the
information at face val#e and wrote it in my notes$
.ichols reacted violently when I as)ed him if he had any b#siness dealings with 7r#nswic)
Corporation in .ew <ersey$ 2e 0#mped #p from his chair by the window and yelled, /(bsol#tely
notO/
I "#ic)ly e&plained that I had loo)ed #p +ir 'enis Cendall 8the famo#s %16 orld ar II 7ritish
officer9 in /ho!s ho in (merica/ and learned that he had once been associated with 7r#nswic)$
.ichols said he did not )now +ir 'enis Cendall$ 2is eyes told me otherwise$
I noted that was strange since %ichael 4iconosci#to seemed to )now him well$ .ichols and
Fo)os)y e&changed glances$ I f#rther e&plained that 7obby 4iconosci#to said she had been to
Cendall!s home on 'oheny 'rive in 7everly 2ills with her children once$ +he had often called
Cendall when she was trying to locate %ichael, and within ho#rs of calling Cendall, %ichael
always called her bac)$ .ichols and Fo)os)y seemed dist#rbed by that statement$
I didn!t mention that 4iconoscit#o had stated Cendall was .ichols! s#pervisor 8CI( /handler/9, or
that <$%$, Ted @#nderson!s research partner, had fo#nd a broch#re in Ted!s files advertising for
+wedish n#rses at a medical research comple& in %e&ico$ The broch#re contained both @#nderson!s
pict#re and +ir 'enis Cendall!s$
I had obtained all of the doc#ments pertaining to .ichols! c#rrent laws#it against Thomas @ates of
the Los (ngeles ,7I, his corporate activities and his weapons permits$ .ichols had been
investigated by @ates for allegedly t#rning over sensitive information to organi;ed crime fig#res in
(merica and the />a)#;a/ crime syndicate in <apan$
.ichols! corporation, %eridian International Logistics, Inc$ 8%IL9, the parent company to %eridian
(rms, had filed a laws#it against @ates for contacting .ichols! 3#ropean and <apanese b#siness
associates$
(s a res#lt, not only were .ichols! weapons permits cancelled, b#t his associates were allegedly
intimidated by the investigation, th#s damaging .ichols! ability to transact b#siness$
I was c#rio#s abo#t how far .ichols wo#ld ta)e the laws#it, and e&actly what the nat#re of the
research was that %IL fronted to the <apanese$ I started o#t by as)ing .ichols if he had provided a
/grant/ to a <apanese facility for biological research* .ichols said he had provided no grant to any
<apanese facility and attempted to change the s#b0ect$
.ichols was not evasive, b#t aggressively direct when he did not want to disc#ss something$
%ichael 4iconosci#to had once commented to me that the biological technology which .ichols was
involved in was /2itler!s wet dream$/ (ccording to %ichael, who was #ncharacteristically hesitant
abo#t disc#ssing the s#b0ect, /biotechnology was the weapon of the f#t#re, ma)ing all other
weaponry obsolete$/
In %ichael!s files in the desert, I had retreived a small cylindrical cannister, abo#t si& inches in
length, with a cap on it$ The metal cannister had not been mar)ed, and instinctively, I had not
opened it, b#t had placed it on a shelf in o#r empty g#est ho#se in %ariposa$
It was not #ntil months later, after %ichael learned I had copies of his doc#ments, that I had as)ed
him what the cannister contained$ %ichael had become disdra#ght, e&plaining that the cannister
contained genetic material in a hybridoma base, a military concept, only to be #sed for military
applications$ %ichael had stolen the cannister from a shipment at ac)enh#t destined for Cing
,ahd of +a#di (rabia and placed the sample in his files in the desert$ 8Proposals had also been
#nderway with Cing ,ahd to provide /sec#rity/ for his palace9$
2is voice had been fra#ght with worry$ 2e implored me to remove the cannister from my property
immediately, ta)e it to a /class A facility/ where it co#ld be disposed of$ I was absol#tely .OT to
open the cannister as it contained lethal to&ins$
Later, at the meeting with 4obert 7ooth .ichols, I again wondered why arms dealers s#ch as Peter
Fo)os)y and 4obert .ichols wo#ld be interested in genetic research* ,ive years earlier, Fo)os)y
and ac)enh#t Corporation had attempted to sell /biological warfare vir#ses/ and vaccine )its to
the D$+$ government to be #sed against small co#ntries bordering (lbania or large co#ntries
bordering the +oviet Dnion$
I did not openly confront .ichols at his apartment abo#t the above doc#ments, b#t as)ed him if he
had sold or facilitated the research of specific biotechnology to the <apanese* .ichols adamantly
denied any involvement in any s#ch research$
hen I rephrased the "#estion, and he reali;ed I )new abo#t the %IL agreements, he admitted that
he had in fact facilitated the research of methodology and ind#ction of cytoto&ic TLymphocytes
thro#gh /five offshore Io#tofco#ntryJ research instit#tes$/ 7#t, he added that the research was
/classified/ by the sponsoring governments and /secret/ and he co#ld not disc#ss it$
hen I pressed for the names of the sponsoring governments, he clammed #p$ 2ad I )nown more
abo#t the technology at the time, I wo#ld have pointedly "#estioned him abo#t the properties of the
vir#s, b#t in retrospect, my ignorance opened doors that otherwise wo#ldn!t have been opened$
I did, however, mention to .ichols and Fo)os)y that %ichael 4iconosci#to had allegedly wor)ed
on the same technology at 2erc#les 4esearch in the early 19B6!s, reportedly #sing fish for
inc#bation p#rposes$
Fo)os)y responded, embar)ing #pon a lengthy disco#rse on the processes by which /they/ had
inc#bated the vir#s in cow #terises and #dders in biolabs twenty floors beneath the gro#nd$ 7#t
.ichols inter0ected, discontin#ing the narrative$ It was obvio#s that both men were becoming
agitated, so I dropped the s#b0ect for the time being$
4egarding Thomas @ates, .ichols e&pressed real anger and noted he wo#ld ta)e the laws#it against
@ates as far as it wo#ld go$ 2e said he didn!t care if he was awarded any money 8he was s#eing for
P11 million9, b#t he wo#ld r#in Tom @ates, no matter what it too)$
( tho#ght crossed my mind that he was abo#t to say that he wo#ld )ill him, b#t instead, he sat
silently glaring, waiting$ I as)ed him how m#ch the laws#it had cost him so far, and he said not a
dime$ Originally, %ichael %c%an#s had advised .ichols, b#t then the case was handled by <ohn
4owell$
It was already apparent that .ichols was warming to the interview, in a disarming, contentio#s sort
of way$ e were reaching a common gro#nd, a netherworld of danger and intrig#e$ The room
became his stage, the people his a#dience$ 2e never too) his eyes from mine, ma)ing every effort to
distract me from my notes$
Dn"#estionably, he was a /game/ player$ The more I entered the game, the better he li)ed it$ It was
a trade off, I gave him a little information, he gave me a little$ 7#t he gave as m#ch as he too) $$$
I as)ed him abo#t his relationship with %C( corporation$ 2e said 3#gene @ia"#into, President of
%C( 2ome 3ntertainment 'ivision, had resigned from his company, %IL, after the ,7I
investigation was #nderway$
7#t @ia"#into was a smart man, noted .ichols$ 2e had learned m#ch from the man$ @ia"#into
drove an older car, as did .ichols$ They hid their assets, living modestly when in the D$+$, )eeping
a low profile$ The ,7I wo#ld /prove/ nothing, said .ichols$ 2e added that %C( Corporation was
/going bro)e,/ and the only division that was ma)ing a profit was the home entertainment division,
which @ia"#into headed$
I recalled privately the conversation in which %ichael 4iconosci#to had told 4$<$ that %C( was
c#rrently facilitating the largest leveraging scam ever conceived of in this co#ntry$ %C( was
s#bse"#ently sold to the <apanese, b#t I had no idea what connection that had to the above
referenced conversation$
.ichols contin#ed to lead the conversation towards 4iconosci#to$ .ichols and Fo)os)y co#ld not
#nderstand why Ted @#nderson testified for %ichael at his trial in ashington state$ (t a previo#s
dinner party at .ichols! apartment in +herman Oa)s, Ted reportedly told the two men that %ichael
had loaned him 8@#nderson9 P66,666 for a 0oint b#siness vent#re$ Ted still owed %ichael the
money$
It is noteworthy that Ted also s#pplied 4obert 7ooth .ichols an affidavit for 2I+ laws#it against
Thomas @ates$
3llen .ichols had mentioned d#ring l#nch that %ichael often b#ried secret doc#ments and
e"#ipment$ Obvio#sly, they were trying to learn what doc#ments I had ac"#ired$ I had not
#ncovered any /b#ried/ doc#ments, b#t had obtained his private files from the trailer in the
California desert$ I did not reveal this to .ichols, ass#ming that Littman had )ept my secret$
2owever, as the conversation progressed, I came to reali;e that .ichols did, indeed, )now I had
obtained %ichael!s files$ One statement which .ichols said in the presence of <onathan Littman
s#rprised me$ Littman contin#ed to leave the room to attend to something in the bac) of the
apartment$ hen he ret#rned, I as)ed .ichols to repeat what he had 0#st said$ .ichols obliged by
reiterating that /%ichael 4iconosci#to wo#ld )ill me if he learned that I had obtained his private
doc#ments$/
I as)ed him /why/ he believed %ichael wo#ld )ill me over that* .ichols seemed to want
confirmation of something I!d obtained, something specific, b#t wo#ldn!t define what it was and I
had no intention of revealing anything to him at that point$
2e randomly disc#ssed the 8coroner!s grand 0#ry9 affidavit in which 4iconosci#to had acc#sed
Phillip (rth#r Thompson of )illing Pa#l %orasca 8%ichael!s partner9 in +an ,rancisco$ Thompson
had wor)ed for the ,7I #nder the code name of /<ason/ in some capacity which .ichols wo#ld not
define$
7#t, according to .ichols, it was 4iconosci#to who had tort#red and )illed Pa#l %orasca$ Peter
Fo)os)y corroborated .ichols! comment$ 7oth men said the tort#re of Pa#l %orasca was %ichael!s
/style/ that %ichael had disc#ssed tort#re techni"#es of that nat#re to .ichols prior to %orasca!s
death$
They added that /<ason,/ Phillip (rth#r Thompson, was not so creative in his )illing style$
Thompson had allegedly )illed many people in his career, b#t he chose to #se a g#n and get the 0ob
done "#ic)ly$ .ichols also said at l#nch, with 3llen listening, that he )new who )illed %ary H#ic)$
3llen rolled her eyes at her h#sband and beseeched him to change the s#b0ect$ I as)ed .ichols to
name the )iller or at least give me a cl#e$ .ichols said the )iller of %ary H#ic) had been arrested
and released$ Obvio#sly they were tal)ing abo#t /<ason,/ who 2(' been arrested and released$
.ichols and Fo)os)y both agreed in a conversation between themselves that %ichael 4iconosci#to
had ca#sed the death of other people also$ .ichols repeated at least three times to my face, with
Fo)os)y and Littman nodding in agreement, that he believed %ichael wo#ld )ill me$
I privately wondered why .ichols was ma)ing s#ch an iss#e of this* I wo#ld #nderstand soon
eno#gh$ %eanwhile, .ichols contin#ed to press his point$ 2e said %ichael was a patient man and
wo#ld wait as long as necessary to accomplish this$ I did not respond, as I had become somewhat
imm#ned to the threat by then$
Littman had made similar statements on the drive #p to +herman Oa)s$ I simply did not perceive
4iconosci#to as a )iller$ .evertheless, I as)ed .ichols how %ichael wo#ld )ill me if he was in 0ail*
Nichols said it !ould 2e done 2y one o (ichael3s "dru" lun/ies#" $e said Riconosciuto $%D
!or/ed or the "overn,ent, and had 2een "rescued" 2y the 4'I or years# 2e added that
%ichael co#ld get away with m#rder$
I was becoming #nresponsive to the game, so I pres#me .ichols decided it was time to /set the
hoo)$/ It was not #ntil two years later that I #nderstood the significance of this incident$ (t one
point d#ring o#r conversation, and completely o#t of conte&t with what we were disc#ssing, .ichols
played a video tape of the assassination of President <ohn ,$ Cennedy$ The so#thern wall of .ichols!
apartment contained a si&footwide screen on which I watched a blown#p 8enlarged9, slow motion
/#nc#t/ version of the famo#s Fapr#der film$
I watched what appeared to be the standard media version of the film, seen so many times in film
clips over the years, b#t then .ichols slowed the camera even more, and on the si&foot screen, I
observed the driver of the limo#sine t#rn to his right, first loo)ing at Connolly, then at Cennedy$
The driver!s left hand came over his right sho#lder, and he was holding a long barreled g#n$ +mo)e
and a b#llet emerged from the g#n, traveling ever so slowly across the screen into Cennedy!s head,
blowing brain tiss#e into the air as he fell bac) against the seat$
+t#nned, I watched <ac"#eline Cennedy open her mo#th in horror as she glanced at the driver, then
try to climb over the bac) seat of the car$
Littman and Fo)os)y and I stared at the scene in silence, #nable to believe what we were seeing$
.ichols then changed the tape and showed what he described as the /media/ version of the
Fapr#der tape$ In the media version, the driver contin#ed to drive, #nflinching, as the shots rang
o#t$ Then the scene switched to the bac) part of the limo#sine$
(t this point, .ichols stopped the frame and pointed with a stic) at a tree in the bac)gro#nd behind
the limo#sine$ ,rom the middle of the tree to the gro#nd, there was no tr#n), 0#st air$ The top part of
the tree was growing in airO
I demanded that my h#sband be allowed to see the film$ I felt I m#st have been hypnoti;ed$ hen
he arrived, he viewed both films #p close, in slow motion, and saw the same thing$ .ichols played
both tapes bac)wards and forwards as often as we demanded, #ntil the memory of it was b#rned
forever into o#r minds$
I wondered if the video had been tampered with$ I as)ed .ichols where he had obtained the original
/#nc#t/ version* 2e wo#ld not say$ I had no idea at that time that his ,$I$'$C$O$ partner, Clint
%#rchison, <r$!s father had had instant access to the Fapr#der film immediately after the
assassination in 'allas, Te&as$
.ichols st#died me for the longest time, then wal)ed over to the window and lit a cigarette$ 2e
finally commented that the CI( can cover #p anything it wants, even a president!s m#rder$ 2e
wanted to show me the power of the Octop#s$ /.othing is as it appears to be,/ he said$
+omehow, that statement rang tr#e$ 2e then noted that he!d read my first boo), the one I had sent
him, then handed me a boo) entitled, /The +earch for the %anch#rian Candidate$/ 2e told me to
read it, appraising me silently$ Inwardly, I recalled a conversation with <$%$, in which she related a
conversation she!d had with Ted after a dinner engagement with .ichols$ .ichols had reportedly
stated to Ted that he headed a 566man assassination team$ <ac)ie had been too frightened to
elaborate on this conversation, b#t had pointed o#t that .ichols once wor)ed in the %CDltra
8%anch#rian Candidate9 program d#ring the -ietnam war$ This program was part of the /Phoeni&
Pro0ect$/ Interestingly, n#mero#s p#blications had mentioned that 3arl 7rian had also participated
in the Phoeni& Pro0ect d#ring the war$
.ichols! sister was allegedly a professional hypnotherapist, and .ichols himself was reportedly
trained in the art of hypnotism$ (ccording to 4iconosci#to, they all called themselves /The Chosen
Ones,/ wore s)#ll and crossbones rings, and shared a common interest, if yo# co#ld call it that, in
the old @erman ++ occ#ltism, its tribal and inner circle rites$
(s I was preparing to leave, .ichols pointed his finger at me and reminded me of the agreement I
had made with him thro#gh Littman$ I as)ed him what agreement* 2e said the agreement that I
wo#ld tell noone abo#t this meeting$ I again ass#red him that I wo#ld mention it to noone$ 2e said I
had better not or I wo#ld end #p li)e the rest $$$
GGGGGG
hen we finally left .ichols! apartment aro#nd five p$m$, I told Littman I did not intend to accept
any more collect calls from %ichael 4iconosci#to at the Tacoma 0ail$ I might even wrap #p the
whole investigation at that point, beca#se I had more than eno#gh material for a story or a boo)$
Littman proceeded to iss#e a warning which I recorded in my noteboo) in the car$ It read as
follows= /Littman warned me today to watch o#t$ .oone gets o#t of this alive$ .o one wal)s$ If I
c#t them off, it wo#ld be very dangero#s$/ I was completely n#mb at that point, and #nresponsive to
any f#rther threats$ e agreed to meet at 11=66 a$m$ at the La %irada @ateway 2oliday Inn in La
%irada the following day to attend 3li;abeth 4iconosci#to!s birthday party$ Tom Olmstead,
%ichael!s lawyer, wo#ld be flying in for the meeting, Ted @#nderson and <$%$ wo#ld be there,
Patric) %oriarty wo#ld be pic)ing #p Olmstead at the airport, 4aymond Lavas wo#ld be there and
possibly the el#sive Tony Patterson, if 7obby co#ld arrange it$ (lso e&pected was <anice
ynograds)y, the (#stralian reporter who prod#ced the news story for (#stralian T$-$
I was e&ha#sted and loo)ed forward to a restf#l evening, b#t first I drove to the nearest toy store and
p#rchased some birthday presents for 3li;abeth$
That evening, I mentally reviewed the day!s events$ .ichols and Littman were #ndo#btedly
screwing with my head$ The doctored Fapr#der tape gave them deniability$ The information I had
obtained at the meeting may or may not have had val#e, b#t I )new one thing, the deaths
s#rro#nding 4iconosci#to and .ichols were real eno#gh$
'ehind the s,o/e and ,irrors la2yrnthe !as a story, one they !ere !or/in" very hard to
conceal# I elt sure the corporate and "overn,ent connections !ere little ,ore than "ronts"
or lar"e scale dru" traic/in"#
QQQQQQ
(t K=?6 a$m$ the following morning, 7obby 4iconosci#to called the hotel where we were staying
8the La %irada @ateway 2oliday Inn9 and informed me that the l#ncheon meeting had been
changed to a new location and <onathan Littman was not going to be allowed to attend$I e&plained
that I had not heard from <onathan, did not )now where he was staying, and co#ld not get in to#ch
with him to tell him abo#t the change$ 7obby and I arg#ed abo#t the inconvenience to Littman$ I
told her that <onathan and I were not p#ppets to be manip#lated by she or %ichael$ 7obby arg#ed
bac) that Olmstead had not shown #p at the airport, Ted and <$% were having a tiff, and she did not
tr#st Littman beca#se of his relationship with 7en Cal)a and 4obert 7ooth .ichols$
+he did not want her da#ghter!s birthday t#rned into a /circ#s$/ I agreed with that aspect of the
meeting, however, 7obby still had not arranged an interview with 4aymond Lavas or Tony
Patterson$ 7obby arg#ed that she did not thin) Lavas or Patterson wo#ld tal) to Littman$ I pleaded
with her to arrange the appointments for Littman!s sa)e, since he had driven from +an 4afael for
that p#rpose$ I e&plained to her that it was important that Littman be present at the interviews with
Lavas and Patterson beca#se I was wor)ing on the %ariposa story with him and we had made an
agreement$
7obby as)ed me directly if I had interviewed 4obert 7ooth .ichols* I said I had not$ I felt it was
really none of 7obby!s b#siness$ I "#alified that, however, by saying that I e&pected to interview
.ichols at some time in the f#t#re$ 7obby said she #nderstood and wo#ld attempt to arrange the
interviews with Lavas and Patterson for the following day, +#nday$
It is noteworthy that Littman wanted to interview Tony Patterson beca#se Patterson /claimed/ to
have been in -ietnam 8Phoeni&:%C1Dltra9 with both 3arl 7rian and 4obert 7ooth .ichols$ I
do#bted that$ To my )nowledge, .ichols had never served in the military$
Patterson had a rather provocative story to tell abo#t .ichols$ (llegedly, .ichols had sm#ggled
several gold icons o#t of -ietnam into the D$+$ 2e later )illed the pilot so there wo#ld be no
witnesses, and left Tony Patterson stranded in -ietnam to be capt#red and tort#red by the -iet
Cong$ Nichol3s activities in 7ietna, also alle"edly included dru" traic/in" or the CI%,
!hich 2oth 'o22y and (ichael Riconosciuto ,aintained !as still operational today# T2(T
so#nded closer to the tr#th$
7obby called me bac) and instr#cted me to arrange a dinner meeting with Littman that evening
8+at#rday9 and she wo#ld show #p to be interviewed, then if Littman agreed to provide her with the
name of the person who had sent the 19B? /dr#g/ transcript to the prosec#tor at %ichael!s trial, she
wo#ld call Patterson and Lavas for interviews on the following day$
I was becoming stressed at that point$ The whole wee)end was spinning o#t of control and I was
ca#ght in the middle$ I noted to 7obby that I wo#ld wait for Littman to show #p at the La %irada
@ateway 2oliday Inn and tell him the meeting had been changed to a new location, b#t that he was
not invited$ I wo#ld then give him the new meeting time K=66 p$m$ at the 7elle Isles resta#rant in
(naheim$ 7obby agreed to that arrangement$
%y h#sband and I waited #ntil 11=?6 a$m$, b#t Littman never showed$ 2e also never called to say he
wo#ld be late$ (t 11=A6 a$m$, I left a message for Littman at the front des) apologi;ing for the
s#dden change in plans, and said we wo#ld meet him at the 7elle Isles at K=66 p$m$$
7obby had changed the l#ncheon to the hotel where she was staying with her children in order to be
able to sign the tab on Patric) %oriarty!s bill$ <anice ynograds)y was present, along with Ted
@#nderson, <$%$ and her two children$ .either Olmstead, %oriarty nor %arshall 4iconosci#to
showed #p at the birthday party$ 3li;abeth opened her presents, we ate l#nch and ca)e and
caravanned over to 'isneyland$ e had a good time with the )ids #ntil si& p$m$
(t 6=?6 p$m$, Ted, <$%$, 7obby and all the children ret#rned to 7obby!s hotel s#ite$ I drove directly
to 7elle Isles$ (t K=66 p$m$, neither 7obby nor Littman had appeared for dinner$ It t#rned o#t that
Littman had left a message at the resta#rant that he was sorry he missed #s at the La %irada hotel,
b#t there was no mention of whether he wo#ld be 0oining #s for dinner or not$
I called +heri Littman, his wife, and she said <onathan was on his way home$ +he did not )now
why$
7obby 4iconosci#to sat with Ted @#nderson and <$%$ in her hotel s#ite and ate pi;;a$ hen I called
her, she said Ted had detained her at the hotel, she co#ldn!t get away$ %y h#sband and I finished o#r
dinner and drove to +an 'iego to see my mother$
I never spo)e to 7obby or %ichael 4iconosci#to again #ntil one wee) later when I learned 7obby
had re"#ested the ret#rn of %ichael!s eight bo&es of doc#ments$ %y h#sband had dropped me off at
my mother!s home and ret#rned to %ariposa$ ,or days he had been receiving #rgent messages from
7obby re"#esting that I call her$ 2e simply told her that I was tired and needed a rest$
%ichael 4iconosci#to called and as)ed him if we had interviewed 4obert 7ooth .ichols* %y
h#sband said, /.o$/
hen I ret#rned home, I called 'o22y and learned that Litt,an had told (ichael Riconosciuto
all a2out the ,eetin" !ith Ro2ert 'ooth Nichols# 7obby wanted to )now why I had lied to her
abo#t the .ichols meeting* &he e5plained that Litt,an had also told (ichael that he had du"
throu"h (ichael3s private docu,ents at ,y ho,e !hich I had o2tained ro, (ichael3s secret
trailer in the desert# 7obby had never told %ichael abo#t this beca#se %ichael had instr#cted her
to stay away from the trailer$
I told 7obby that I did not believe Littman wo#ld do s#ch a thing$ I added that if I 2(' interviewed
.ichols, and he re"#ested confidentiality, I wo#ld )eep my word to him$ There was no reason to
disc#ss s#ch an interview with 7obby or %ichael$ 7obby accepted that$
2owever, to convince me that Littman had in fact told %ichael abo#t the contents of the meeting,
she reco#nted that %ichael had told her that the meeting too) place on Th#rsday, it lasted five
ho#rs, and I wo#ld not ta)e my coat off d#ring the entire meeting, which allegedly made .ichols
nervo#s$
7obby also stated that I had been seated in a location where I co#ld be scanned for electronic
devices, and since I was not /b#gged,/ .ichols co#ld not #nderstand why I didn!t ta)e my coat off$
I immediately h#ng #p from 7obby and called Littman$ There was no answer at his home, so I
called 4obert 7ooth .ichols$ Dpon answering the phone, .ichols immediately acc#sed me of
/brea)ing my word to him$/ There was a sinister edge to his voice$ I e&plained to him that, to date, I
had not spo)en to %ichael 4iconosci#to since two days prior to the +herman Oa)s meeting on
,ebr#ary 1?th$
.ichols co#ntered that Litt,an had called hi, and told him that "I" had i,,ediately reported
to (ichael the entire contents o the ,eetin", beca#se %ichael )new all abo#t it$ 2is tone was
acc#sing, attentive, b#t devoid of anger$ Then silence, waiting$ I was indeed ca#ght in the tentacles
of the Octop#s, and I felt the weight of it at that moment$
I told .ichols that I wo#ld have 7obby 4iconosci#to call him and repeat what she had said to me,
that Littman had betrayed both .ichols and myself$
.ichols la#ghed$ /hy sho#ld I believe anything 7obby says* I don!t want to tal) to her, and I don!t
want her to have my telephone n#mber$ 'id yo# tell her where we met*/ 2is voice was deeper,
throatier, and I felt li)e a fool$ hy sho#ld he believe her* I was grasping at straws and I had no
answers$ hy wo#ld Littman betray me, with so m#ch at sta)e*
I said I wo#ld get to the bottom of this and let him )now the res#lts$ .ichols said he was leaving for
(#stralia the ne&t day, wo#ld not be bac) for three months$ 82e had said the same words to 7ill
2amilton when he was searching for 'anny Casolaro on (#g#st Eth9$
.ichols said he was -34> interested in hearing the res#lts$ /,or my sa)e$/ 2e added that I sho#ld
)eep Peter Fo)os)y apprised of the res#lts of my in"#iry, then he h#ng #p$
I called <onathan Littman and as)ed him, /hat!s going on*/ 2is voice was withdrawn, ca#tio#s$ /I
don!t )now$ hat is going on*/ I decided to taperecord the conversation$ %y life was in danger as a
res#lt of Littman!s actions, and I needed a lifeline to save it$
I e&plained that I had been in +an 'iego visiting my mother, and when I ret#rned, 7obby
4iconosci#to related the details of my interview with .ichols$ /+he said >OD told %ichael
everything$/
Littman said, /%ichael )new the tr#th$/
/I haven!t tal)ed to %ichael since before the interview with .icholsO 2ow did he )now abo#t it*/
Littman!s voice too) on a slow, malignant tone$ /hat I!m saying is, yo# told him beforehand, and
yo# can!t play games with people li)e %ichael$/
I was astonished$ (nd somewhat fl#stered$ 7#t I wanted to give him every opport#nity to e&plain
himself$ /.o$ .o$ +omething has happened$ +omething!s wrong$ 7obby 0#st told me that >OD told
%ichael all abo#t the meeting$ (nd I told her I didn!t believe that$ I told her I 'I'.!T have an
interview with 4obert 7ooth .ichols $$$/
Littman "#ic)ly responded, />o# sho#ldn!t lie to %ichael $$$/
I tho#ght to myself, why sho#ld I have to report who I interview to %ichael or 7obby* It was none
of their b#siness$ 7#t instead, I said, /7obby told me she )new I interviewed 4obert 7ooth .ichols
on Th#rsday, for five ho#rs, and I wore my coat thro#gh the entire meeting$ (nd she said, NThat
made .ichols paranoid$! .ow, how in the hell co#ld she have )nown that*/Littman answered in an
eery, robotic voice, /I want to tell yo# something $$$/
I interr#pted, / $$$ (nd how did she )now that I allowed yo# to loo) at %ichael!s doc#ments, <on*/
Littman began again, /+he didn!t$ +he only )nows yo# have them $$$/
Littman was being evasive, o#tright lying$ I was becoming increasingly fr#strated$ I hated being
red#ced to that level of conversation$ 7#t so m#ch depended on it$ /<ohn, 7obby said %ichael
called her$ %ichael .3-34 )new I had those bo&es #ntil >OD told him$ 7obby said >OD revealed
to him that yo# had seen the doc#ments, seen the diary, seen everything$/
I had withheld portions of the diary from Littman, amongst other things$ I co#ldn!t #nderstand why
he wo#ld have alarmed %ichael abo#t the diary, or lied abo#t having it$ %ichael had ris)ed his life
at ac)enh#t to obtain the only copy, bro)en into 'r$ <ohn .ichols! office to retreive it, and fled to
ashington state to begin a new life$ 2e had tho#ght it was sec#re in the desert$ .ow I had it$ (nd
%ichael )new 7obby and I had )ept the secret from him$ (nd Littman had betrayed #s both$
I contin#ed $$$ /2ow wo#ld %ichael have )nown that I didn!t ta)e my coat off in the meeting with
.ichols* .obody )new that e&cept yo#, <on$/
Littman stayed cool as ice$ /Let me get one thing straight with yo#$ I gave yo# the conditions #nder
which yo# were to meet with .ichols $$$/
/(bsol#tely$/
/ $$$ (nd yo# betrayed those conditions by telling %ichael that we were going to interview .ichols$
(nd that p#t all of #s in an aw)ward position $$$/
I was astonished at how twisted the whole sit#ation had become$ I stammered, /<onathan, I didn!t
)now I 2(' an appointment with .ichols at the time I told %ichael that$ I simply told him I
PL(..3' to interview him at sometime in the f#t#re$ I haven!t spo)en with %ichael since the
interview with .ichols* 7#t >OD have $$$/
Littman contin#ed his train of tho#ght, disregarding what I had said$ /Once yo# told %ichael yo#
planned to interview .ichols, then yo# had to tell hi, everythin"# >o# had to tell the tr#th$/
I as)ed pointedly, /'id >OD tell him the tr#th*/
Perversely, he confessed, "I told hi, the truth e5actly# 'ecause he /ne! !e3d 2een there# %nd
I3, not "oin" to lie to (ichael# $e /ne! !e3d 2een there ###"
I inter0ected, "'ut you "ave your !ord to Ro2ert 'ooth Nichols that you !ould never divul"e
the contents o the ,eetin" to anyone# $o! could you do thatC"
Litt,an atte,pted to chan"e the su20ect, to put ,e on the deensive# ".OU are no! the ly in
the spider3s trap ### .ou "otta 2e stai"ht !ith all these people# With (ichael, !ith Oo/os/y,
!ith Nichols, these people can i"ure these thin"s out# They3re not du,2 people#"
/<ohn, I!ve been straight with all of them$ 3very one of them$ I have never betrayed any of them,
other than to provide you, as a 0ournalist, !ith so,e docu,ents you reBuested ###"
2e interr#pted me, still spea)ing metic#lo#sly, ever so slowly$ />o# cannot fool people li)e %ichael
and 7obby and Ted @#nderson$ %ichael )new the meeting was going to ta)e place$ (nd it!s not a
good idea to go bac) and tell him a story that something didn!t happen when it did happen$/
There was a monotono#s singsong to his voice$ 2e so#nded li)e a tape recording$ I was
incred#lo#s$ hy was I defending myself to this man* I tried once again$ /%ichael doesn!t control
my life$ I didn!t tell him the meeting never too) place$ I .3-34 +POC3 TO %IC2(3L (,T34
T23 %33TI.@ IT2 .IC2OL+O I didn!t lie to him beca#se I haven!t spo)en with him$ I was in
+an 'iego$ I still haven!t spo)en to %ichael$ hy can!t yo# #nderstand that*/ /ell, yo#!re in the
middle of it, beca#se yo#!re involved with 7obby and $$$/
/ $$$ ell, I!m not$ That!s the point, I!m not$ It!s a dangero#s game and I want no part of it$ I made
that very clear with 7obby today when I spo)e with her, which is the first time I!ve spo)en with her
since the meeting in +herman Oa)s$/
/ $$$ >o# told %ichael that yo# were going to have a meeting with $$$/
I was determined to get a confession from Littman$ %y life might depend on it$ /<onathanO
<onathanO .ou stood in that roo, !ith Ro2ert 'ooth Nichols, and you heard hi, say aloud in
ront o 2oth us, that i (ichael ever ound out !hat I have >the docu,ents?, he !ould /ill ,e#
I !ould 2e dead# Do you re,e,2er !hen he said thatC"
"&ure#"
/ $$$ >et yo# told %ichael yo# had come to my home and seen his doc#ments from the desert*
hy*/
Littman repeated over and over the same words$ />o# lied to %ichael$ That was very st#pid $$$/
I wondered if he was into&icated$ I c#t in, />o# set me #p$ >o# called .ichols immediately after
>OD told %ichael abo#t the meeting$ Then yo# called .ichols and told him that /I/ told %ichael
abo#t the meeting$ .ow, .ichols 0#st told me that today$ hy did yo# do that, <onathan*/
<onathan did not deny setting me #p, b#t stammered lamely, /I $$$ I did not appreciate yo#r phone
call to .ichols earlier today$ >o# have placed me in an aw)ward position with Fo)os)y and .ichols
$$$/
+o, .ichols had informed Littman of my phone callO 2ad he acc#sed Littman of betraying him to
%ichael* I wo#ld probably never )now the answer to that$ I responded, /I called .ichols and as)ed
him what was going on* 2ow in the world co#ld this have come abo#t* I told .ichols what 7obby
had said$/
Littman was o#traged that I had called .ichols and conveyed what 7obby had said$ 2e was also
o#traged that 7obby had called me and confronted me abo#t the .ichols meeting$ Obvio#sly T2I+
had not been in the scheme of things$ Littman had obvio#sly .OT e&pected 7obby to confront me$
(fter the Los (ngeles fiasco, I had been fed #p with her treatment of Littman and was cooling off in
+an 'iego for a wee)$ I had told Litt,an that I !ouldn3t 2e spea/in" !ith either 'o22y or
(ichael a"ain# Littman had #nderestimated 7obby!s determination to spea) to me, and my
assertiveness in calling .ichols$ 2is plan had bac)fired$ Perhaps he had e&pected me to be dead
before I had an opport#nity to tal) to anyone*
I was immediately alarmed abo#t the synopsis and bac)#p doc#ments I had t#rned over to Littman
on the %ariposa dr#g lab$ It had incl#ded the names of the Indians who had confided in me$ e had
planned to do a story together for the +an ,rancisco Chronicle$ /<ohn, can I as) yo# one more
"#estion* 'id yo# ever send the %ariposa information to the Chronicle*/
2e answered c#rtly, /.o$/
/>o# as)ed me to send it to yo#$ hy didn!t yo# send it to the Chronicle* hy did yo# even as) for
it*/
<onathan hissed at me$ />o# lied to 4iconosci#to!s wife, or yo#r h#sband did Iregarding the .ichols
meetingJ, and as a conse"#ence of that, yo#!re in hot water$ I warned yo# abo#t this whole thing $$$/
/I!m in hot water beca#se >OD betrayed me to %ichael,/ I co#ntered$
(gain he repeated, "I told hi, EE%CTL. !hat happened# .ou3re a ool, and you 2etter start
"ettin" s,art ### I thin/ you should thin/ t!ice a2out continuin" !ith this ###"
The Indians who had t#rned in the dr#g lab were at ris)$ <onathan had their names, incl#ding
detailed information on two dep#ties implicated in growing mari0#ana and distrib#ting
methamphetamine on the Indian reservation in %ariposa$ I wanted my paperwor) bac)$
/<onathan, there!s something I need to )now right now$ This is important$ >o# have information on
%ariposa $$$/
<onathan h#ng #p$ I paced the floor of my office for a moment, then called him bac)$ 2e didn!t
answer, b#t I )new he was standing by the phone while I tal)ed into his answering machine$ I
informed him that I intended to doc#ment everything that had transpired at the .ichols meeting,
incl#ding his betrayal of me to both .ichols and 4iconosci#to, and that he had attempted to set me
#p to be )illed by one or both of these men$
I said I was ta)ing the report to the nearest D$+$ (ttorney and sending a copy to his editor at the +an
,rancisco Chronicle$ (nd, I wanted my %ariposa paperwor) ret#rned$
I then called 4obert 7ooth .ichols, b#t there was no answer at his home, so I called Peter Fo)os)y$
Fo)os)y, as always, was friendly and congenial, and confirmed that .ichols was very interested in
the res#lts of my in"#iry$ I reco#nted the conversation I!d had with Littman, in which he had
confessed his betrayal, and offered proof of the conversation$
Fo)os)y said that wo#ld be fine and he wo#ld pass the information along to .ichols$ On +#nday,
,ebr#ary 5?rd, I again tal)ed to 7obby 4iconosci#to$ e again disc#ssed what Littman had done
and why he had attempted to convince .ichols that I had betrayed him I.icholsJ to 4iconosci#to$
'o22y and I 2oth ac/no!led"ed that (ichael had /no!led"e o Nichols3 "overn,ent and
dru" activities over a t!entyyear ti,e span# UnBuestiona2ly, Nichols !anted to discredit
(ichael in any !ay he could ### or deter anyone ro, o2tainin" (ichael3s inor,ation#
+#ddenly, 7obby said she believed I was being /set #p for a hit$/ I said I tho#ght %ichael was being
set #p with 4obert 7ooth .ichols$
+omeone, whoever was controlling Littman, was trying to create friction between %ichael and
.ichols, and attempting to #se me to do it$ %y friendship with 7obby had #ne&pectedly thrown a
mon)eywrench into their plans$
7obby confided that %ichael had taperecorded the conversation in which Littman had reported the
contents of the .ichols meeting$ %ichael had called a /friend,/ and had the friend patch %ichael
thro#gh to Littman$ The conversation had then been monitored and tape recorded by the third party
8obvio#sly Ted @#nderson who performed this f#ncton often9$ 7obby agreed to send me a copy of
the taperecording$
I as)ed her why Littman wo#ld try to t#rn both .ichols and %ichael against me$ Professional
0ealo#sy* 7obby said, /.o, the same thing happened to 'anny Casolaro$/
Littman had been tal)ing to 'anny Casolaro reg#larly, as well as .ichols and 4iconosci#to at the
time of 'anny!s death$ .et, Litt,an had never !ritten a sin"le !ord a2out Danny RR or Ro2ert
'ooth NicholsPP
e both agreed that someone was being set #p, b#t 7obby insisted that it was me$ +he said she
needed to chec) something o#t and she wo#ld call me bac)$ +hortly thereafter, 7obby called bac)
and breathlessly stated she had confirmed that I was abo#t to die$ +he wo#ld not say who she had
tal)ed to, b#t int#itively, I felt it was Ted @#nderson$
7obby said if I died, %ichael wo#ld be held responsible$ I had received collect calls daily from him
for three months, then c#t off all comm#nication with him after meeting with .ichols$ I had
obtained (LL of %ichael!s doc#ments in the desert witho#t his )nowledge, #ntil recently$ I held in
my possession the ban) cards which Pa#l %orasca and %ary H#ic) had died for$
It was a perfect set #p, noted 7obby$ 3veryone, incl#ding my own h#sband, wo#ld believe %ichael
had contracted my death$ Inwardly, I recalled the n#mero#s statements by .ichols and Littman and
Fo)os)y that /%ichael wo#ld )ill me$/
Dndo#btedly, they had e&pected me to repeat those state,ents to others, perhaps other reporters,
or friends, or relatives$ ho, in t#rn, wo#ld have repeated it to the police /after my death$/
In fact, I hadn!t repeated it to anyone, b#t it (+ scattered thro#gho#t my notes$ 7obby advised me
to get o#t of the ho#se immediately, then call the ,7I, the D$+$ (ttorney, the police or anyone else I
co#ld thin) of immediately$ /They!re going to )ill yo#, if yo# don!t 4D.O,/ she yelled$
+he said she was going to hang #p, and when she called bac), she didn!t want me to be in the ho#se$
I became somewhat alarmed beca#se of the vario#s deaths s#rro#nding %ichael 4iconosci#to$
4egardless whether anyone believed him or not, the deaths were .OT ma)e1believe$ To name 0#st a
few= %ary H#ic)L Pa#l %orasca, %ichael!s former partnerL %ichael %ay who had visited
4iconosci#to in 0ail two wee)s before his deathL 'ennis 3ismann, a lawyer %ichael tried to hireL
and of co#rse, 'anny Casolaro who had been introd#ced to the Octop#s thro#gh %ichael
4iconosci#to$ There were others with less direct connections$
<#st three months after 'anny!s death, I had been approached by 4iconosci#to, and the game of
'#ngeons and 'ragons had beg#n again, this time with a new player$ It seemed as if .ichols and
%ichael and Ted, and others, played a real life game, and when one of the players got /accidented/
or /s#icided/ 8as Ted called it9, they simply recr#ited new players$ Oddly, %ichael had once said
that anyone co#ld leave /the game/ by simply dropping o#t while they were still alive$ Once it was
)nown they had dropped o#t, they were left alone 1 if they )ept their mo#ths sh#t$
%ichael had #sed 0o#rnalists to gather information he needed to stay abreast of the game$ It was a
s#btle form of blac)mail he #sed on .ichols and Ted and, indeed, the government whom he had
wor)ed for$ I had once as)ed him why /they/ didn!t 0#st )ill him$ 2e had answered that they didn!t
want to )ill him$ They wanted his technology$ The ,%C deal was, in fact, still on hold$ The deaths
aro#nd him were /p#nishment/ for his indiscretions, and to )eep a lid on their biological warfare,
hightech weaponry, and largescale heroin and cocaine operations worldwide$7#t who wo#ld believe
it all* There were h#ndreds of deadend gopher trails $$$ dried #p corporations, discredited witnesses,
dead bodies$ .ichols had said only days before, in Littman!s presence, that my death wo#ld be
bro#ght abo#t by one of %ichael!s /dr#g fl#n)ies$/ ho wo#ld believe otherwise*
Littman had seemed adamant, even o#traged, that I 2('.!T reported the contents of the .ichols
meeting to 4iconosci#to$ hy* hen it was Littman who originally warned me not to* hen I
didn!t, Littman reported it himself$
+omehow, the s#ccess of the scheme had hinged #pon 4iconosci#to having )nowledge of the
meeting$ I had #ne&pectedly )ept my word to .ichols$ Of co#rse I had$ %y life depended on it$
(nd, why had .ichols made a point of showing me the Fapr#der film* hat possible significance
co#ld that have on my investigation*
8Two years later, after spea)ing with 'ic) 4#ssell, a#thor of /The %an ho Cnew Too %#ch,/ a
1Kyear investigation of the Cennedy assassination, and @arby Leon at +ilver Pict#res, we theori;ed
that the film had been shown to provide .ichols with /deniability$/ If I had mentioned the showing
of the film to anyone in media, and placed any credibility on it, it wo#ld have invalidated
everything else that too) place at that meeting$9
The phone rang again, and it was 7obby 4iconosci#to$ +he was even more agitated than before 1
and f#rio#s that I was still in the ho#se$ I ass#red her that I was leaving and h#ng #p$ I called 4ay
<en)ins and 4oger Imbrogno and as)ed them to come to my home in %ariposa$ 4ay was a former
Chief of Police of %erced College and a good friend$ 2is companion, 4oger, was in the +tate @#ard
with him$ They arrived AE min#tes later carrying military rifles and a b#lletproof vest$
I sat at my comp#ter and doc#mented the whole event, entitled, /-orte&$/ It was a 1Kpage diary of
sorts which began as follows= /The following is a detailed acco#nt of an investigation which I
began on 'ecember 1, 1991 and contin#e to wor) on intermittently as time allows$ In all my years
as an investigator and 0o#rnalist, I have never enco#ntered anything as bi;arre or as alarming as this
story$ The p#rpose of this diary is to doc#ment these occ#rrances for my own safety $$$/
I did not send the report to the D$+$ (ttorney as I had threatened to do$ .or did I send it to Littman!s
editor, %ichael >amamoto, at the +an ,rancisco Chronicle, tho#gh I sho#ld have$ I simply )ept it
and sent a copy to 4$<$, where I!m s#re it disappeared, as always, down the big, blac) hole$
(t that point in time, my sense of reality was diminishing$ I co#ldn!t tell if I was overreacting to
7obby 4iconosci#to!s warning, or if my lac) of e&perience might ca#se my death by staying at
home$ Dltimately, I decided to disappear for a while$
I drove to ,resno to stay with a friend, who s#bse"#ently accompanied me to @alveston, Te&as
where we stayed with her mother for three months$ al)ing the beaches of @alveston, I fo#nd some
meas#re of balance within myself, and ret#rned home in <#ne, rested and ready to res#me my life$
,or several months after that, I had no contact with any of the principles in my investigation #ntil
October, 1995$
C$%)TER *:
+ometime in midOctober, at the offices of the %ariposa @#ide, I received a h#rried phone call from
'ave %assey, standing in the lobby o#tside the ashington '$C$ offices of (7C!s /56:56/ news
b#rea#$ I had as)ed %assey to pic) #p )ey doc#ments at the offices of prod#cer 'on Thrasher at
/56:56/ who had been holding them there as a safety preca#tion for me$ 8/56:56/ had aired an
indepth piece on the corr#ption in %ariposa Co#nty and I had developed a friendship with Thrasher
at that time9$
(fter %assey emerged from Thrasher!s office b#ilding, he!d met with <ohn Cohen, investigator for
the 2o#se <#diciary Committee on Inslaw$ They tal)ed for a few min#tes, then Cohen as)ed %assey
if he wo#ld t#rn over my doc#ments to him* %assey e&c#sed himself and h#rriedly called me at my
office in %ariposa$ I instr#cted him .OT to hand over the doc#ments$ %ost of them were my
originals and I had no copies$ 8Thrasher had flown into California to pic) the doc#ments #p, b#t we
hadn!t had time to ma)e copies9$
2owever, I mentioned to %assey that he was welcome to give Cohen my telephone n#mber if he
wished$ +hortly thereafter, Cohen called me at my home and we had n#mero#s conversations d#ring
the ne&t several wee)s$ It was my #nderstanding that he was the lead investigator in the 2o#se
<#diciary Committee!s threeyear investigation of the Inslaw stolen software$ The final Investigative
4eport, dated +eptember 16, 1995, titled /The Inslaw (ffair,/ had already been p#blished and I
wondered why he bothered to call me$
(fter m#ch coa&ing, I finally agreed to send him some sort of an affidavit$ I was wor)ing as a
reporter for the local newspaper and didn!t have time to p#t together a detailed report, so I simply
attached a notari;ed cover sheet to /-orte&/ and mailed it off to him$
On October 5B, 1995, Cohen called bac)$ 2e was very e&cited abo#t -orte&$ "There3s so,e "reat
inor,ation here,/ he observed$ />o# did a very good investigative 0ob, I have to commend yo# on
that$ I reali;e it!s only a fraction of everything yo# have$ What you have done, you have put the
pieces o the !hole thin" to"ether# Little bits and pieces of things that I have )nown abo#t, that I
had theori;ed abo#t, yo# have fo#nd the answers to those specific "#estions$/I e&plained to Cohen
that I planned to p#blish a boo) on the s#b0ect and his professional opinion was val#able to me$
2e added, />o#!ve done some good investigative wor) here$ It p#ts me in a position to say, N>eah,
this st#ff is good, and this is some st#ff yo# may want to get o#t$! In fact, I can p#t myself o#t as
being available to these media people to be an inside so#rce, for bac)gro#nd only, which wo#ld also
add credibility to yo#r pro0ect$/
Cohen hesitated, seemingly #ncomfortable with what he was abo#t to say$ 2e drew a deep breath,
then proceeded$ ".ou are actually a /ey !itness to this thin" no!# (nd yo# might want to
consider tal)ing to a co#ple of the honorable law enforcement people that are still wor)ing on this$ I
do )now there are c#rrently some ,7I investigations that are in place on this $$$/
Cohen hesitated again, gathering his tho#ghts$ / $$$ There has been coordination on this$/ 2e waited
for a response, a signal that I #nderstood what he was trying to say$ I said I #nderstood$
/It!s been #nofficial, b#t there has been coordination$ +o, I!d li)e to )now whether $$$ maybe it wo#ld
even )eep yo# o#t of the limelight, whether yo# wo#ld mind, as long as I tal) abo#t it and clear it
with yo# first $$$/
Cohen was leading #p to something, b#t having tro#ble getting to the point$ / $$$ There is a certain
sharing of information$ +ome of the leads and some of the st#ff Iin -orte&J 8pa#se9 $$$ 7eca#se I!ll
tell yo#, one of the biggest hits 8pa#se9 $$$ I al!ays elt that there !as a narcotics connection in
this ###"
I la#ghed alo#d$ Cohen contin#ed $$$ "re"ardin" international narcotics distri2ution# (nd I!ve
sort of made my e&pertise in my years in law enforcement, international narcoterrorism, the
weaponsdope connections in the intelligence agencies $$$/
I co#ld only say, />es, yes, yes$/
/ $$$ (nd when I was in Los (ngeles I did a lot o undercover !or/ !ith Colu,2ians, !here I
!or/ed international narcotics conspiracies !ith DE% and 4'I and, 2ein" a local police
oicer, I didn3t really "et cau"ht up in their syste,s, I 0ust ,ade so,e "reat contacts in these
a"encies# 'ut I also learned Buite a 2it a2out &outheast %sian heroin and the rise o the
(edellin Cartels and the other Cartels in Latin %,erica#"
/>es$/ 7y then, I )new Cohen had grasped the significance of the inor,ation (ichael
Riconosciuto had atte,pted to trade to the 4'I, as !ell as Danny Casolaro3s atal inBuiry
a2out (i/e %22ell o the DO8 and his connection to 6il2ert Rodri"ue1 and 8ose Londono o
the Cali Cartel#
Cohen continued ### "%nd I also ran into Buite a e! la! enorce,ent proessionals !ho !ere
pretty irritated 2ecause o the intelli"ence a"ency, dru" dealer connection#"
/>es$ 4ight$/
"Well, the thin" that is interestin" is, one o the ,ost interestin" thin"s in the !hole report,
!as the article on The Co,pany#"
/>es$/
" ### 'ecause that i,,ediately ans!ered, or conir,ed, !hat ,y suspicions had 2een$ (nd I
)now the e&act, right channel to p#sh to get this thing hoo)ed #p$ (nd he!s a bigtime $$$ 8pa#se9 +ee
this is a very good time for people li)e #s, who are o#t for p#rposes of good, to $$$8pa#se9 >o# see,
right now the ,7I is in a war with the 'epartment of <#stice$ (nd wo#ld li)e nothing better than to
have an investigation that they can discredit the 'epartment of <#stice with$ +o, the time is ripe to
feed this st#ff to the right people$/
I agreed that the dr#g operations needed to be cleaned #p, beca#se the dr#gs were filtering into the
smaller comm#nities$ 7#t, thin)ing of %ariposa, I added that there were law enforcement people
involved in the dr#g trade$
Cohen agreed$ /I!m very caref#l with who I deal with$ (nd I thin) when these people contact yo#,
yo#!ll be somewhat s#rprised$/
4el#ctantly, I said, /O), I will wor) with them$/
Cohen concl#ded by saying, ".ou said so,e real interestin" thin"s# I li/e the section !here you
said @'o2 Nichols runs 6len &hoc/ley, 6len &hoc/ley runs 8ose Londono#3 No! that
corro2orates so,e inor,ation that I "ot in the past !hich tal/ed a2out one o the reasons
)RO(I&E !as stolen# >o# see, I!ve had a side theory abo#t another reason why P4O%I+3 was
ta)en$ (nd it was that P4O%I+3 co#ld also be modified to trac) money la#ndering$$/
/Oh, absol#tely$/
/$$$ (nd it co#ld also be #sed as an active information gathering, or an active moving software
program that can go into other data bases$ (nd it co#ld be modified to control h#ndreds of acco#nts
and move money thro#gh the international ban)ing system$/
I inter0ected, /This is what %ichael 4iconosci#to was trying to trade to the ,7I and to ,inCen $$$/
Cohen added, /hat a lot of people don!t reali;e is that there are two international ban)ing systems$
There!s C2IP+ and +I,T$ (nd the word +wift Chips has been spread o#t thro#gho#t this whole
IinvestigationJ$ (nd a lot of people don!t reali;e what that meant$ ell, +wift Chips is a referral to
those two clearing ho#se systems$ The clearing ho#se interban) payment system and then the
3#ropean co#nterpart, +wift$ (nd they do P5 billion dollars worth of ban)ing transactions a day$/
/>es $$$/
/ $$$ (nd if one was able to move acco#nts thro#gh there, yo# co#ld move money aro#nd the
world $$$/
GGGGGG
In a s#bse"#ent conversation with Cohen he as)ed me how I had obtained the doc#ment in which
Ted 6underson had ,entioned their "dru"Jar,s operationC" 8+ee Page 669
I e&plained that I had fo#nd it in %ichael 4iconosci#to!s secret files in the desert$
Cohen re,ar/ed, "That3s a "reat docu,ent#"
I added, /I have the original$/
Cohen= />o# have the original*/
/>eah$/
Cohen noted, ".ou han" on to that# That3s @/ey#3"
GGGGGG
I was s#bse"#ently contacted by Thomas @ates of the Los (ngeles ,7I, and <ohn Connolly of +P>
maga;ine$ @ates was somewhat cryptic and noncomm#nicative abo#t his investigation$ It was
#nderstandable since he had been s#ed by 4obert 7ooth .ichols in a civil co#rt$
<#st before @ates called me, I had spo)en with @ene @ilbert for the first time, the investigator at the
4iverside 'istrict (ttorney!s office, and learned that dr#g activities at ac)enh#t had been
investigated for years, b#t a certain ,7I agent, a ,red 4eagan, had always sh#t the local
investigations down$
I related this information to @ates, who seemed not partic#larly interested in that aven#e of
approach$ /I!m mostly interested in 4obert 7ooth .ichols,/ he said$
I e&plained to @ates that .ichols had made it very clear that I was not to disc#ss the meeting I!d had
with him to anyone$/
@ates in"#ired, /hy wo#ld he tell yo# that*/
I responded, /I have no idea$ 7#t I thin) he was serio#s$ 2e had his wife ta)e my pict#re front and
side, and he wo#ldn!t allow my h#sband into the interview$ %y h#sband had to sit downstairs in the
van$/
I s#mmari;ed the interview briefly, then noted that I had obtained, thro#gh 7obby 4iconosci#to,
eight bo&es of %ichael!s doc#ments in the %o0ave 'esert near 'eath -alley$ I believed those
doc#ments had ca#sed .ichols and:or <onathan Littman to want me o#t of the pict#re$
/%ichael didn!t )now that we had done this,/ I noted$ /%ichael had instr#cted his wife not to go
near the trailer o#t there$ 2owever, 7obby and I 'I' go o#t there$ It was dar) and it was cold and
the )ids were h#ngry, so rather than go thro#gh all those doc#ments, she 0#st gave them all to me$ I
p#t them in my van and and I came home with them$ (ll the originals$ (nd I spent a wee) copying
all this st#ff, then I shipped the bo&es bac) to her fatherinlaw$/
@ates had a habit of saying nothing when I finished my sentence$ +o I contin#ed $$$ /+ome of this
st#ff was incredibly incriminating for all of them$ (nd this is why they!re all concerned$ They!re
really afraid that I!m going to send some of this material to someone, somewhere$ (nd, I did send a
1Kpage s#mmary 8/-orte&/9 to <ohn Cohen, b#t not the material itself$ There!s too m#ch to send$
(dditionally, I have reams of notes$ I )ept notes on all the calls I received$/
@ates as)ed what /-orte&/ contained* I replied that it pretty m#ch s#mmari;ed everything that had
transpired from the first day$ /I had contacted Ted @#nderson regarding a problem here in
%ariposa$ 2e had compiled a K66page report on T#lare Co#nty and I wanted to )now if he had
anything on %ariposa co#nty, where I live$ e had a meeting for abo#t eight ho#rs and I disc#ssed
the things that were going on in o#r comm#nity, which is close to ,resno$ (nd, the very ne&t
morning, %ichael 4iconosci#to called me$ I!d never heard of the man before, b#t he proceeded to
give me all the names of the people involved in The Company o#t of ,resno, which he was wor)ing
within the framewor) of$/
(gain @ates said nothing$ I waited, b#t there was no response$ +o I added, /.ow, all of this starts to
get real involved at this point$ I don!t )now if yo#!re interested in this, or not $$$/
@ates replied, /The Company*/
/>es$/
@ates noted, /(t a f#t#re date$ I!m more interested in what .ichols had to tell yo# right now$/
.ichols had s#ed @ates and lost his case "#ite recently$ I wasn!t s#re I wanted to wal) into a
sit#ation where I wo#ld be ca#ght in the middle$ I as)ed, /ell, I need to find o#t from yo# 1 I!m
not real thrilled abo#t playing with this g#y, yo# )now $$$/
@ates= /I don!t want yo# to play with him$/
/'o yo# want me to come in as a witness on yo#r behalf, or what*/
@ates e&plained, /The Civil s#it is finished$ This is a cri,inal proceedin"# I want to )now what he
said to yo#$/
I responded, /ell, I want to )now where this is going to go$ I want to )now who!s listening in $$$/
/.obody!s listening in $$$/
/ $$$ I want to )now what yo#!re going to do with it$ here it!s going to go$/
/ell, what do yo# (.T me to do with it*/
/ell, if I!m going to get involved in it, and once I tell yo# what I )now, I!m going to be involved$ I
want to )now in what capacity I!m going to be involved*/
@ates was evasive$ /ell, I don!t )now what yo# have to say$ %s ar as loo/in" at the "ross
a,ount o evidence !e have, !e3re "ettin" ready to do that real soon# e have a lot of people
o#t there tal)ing to #s, b#t we need to find the s#bstance of the criminal act$/
/>es$/
6ates continued ###"%nd you ,ay have the /ey to so,e o that#"
I was s#rprised$ /+o, yo#!re p#tting together a Ncriminal case$! >o#!re going to have to level with me
to a certain point$ I #nderstand that yo#!re ,7I, and everything goes in and nothing ever comes o#t
again, b#t still yo#!re going to have to level with me to a certain point, beca#se I need to )now
where I stand$/
@ates drawled, /ell, if there!s information that wo#ld be needed for criminal prosec#tion, then
we!d have to tal) to yo# abo#t the #se of that material$ (nd if yo# decide yo# don!t want to #se it, or
don!t want to relin"#ish it, then we can!t compel yo# to get on as a free witness and tal) abo#t this$/
/Dh,hmmm$/
/ $$$ +o, we wo#ld hope that yo# wo#ld do it$ hatever information yo# provide at this point will
remain confidential$/
/Dh, hmmm$/
/ $$$ >o# )now what I!m saying*/
/Dh, hmmm$/
/ $$$ That!s yo#r choice$/
/>es, well I!ll have to thin) abo#t it$/
/ell, if yo# co#ld give me an idea as to what was mentioned, I co#ld tell yo#, basically, how we
can handle it$/
I didn!t )now where to begin, what he wanted, so I as)ed, /%ay I as) what are the charges that
yo#!re going to bring against .ichols* o#ld this have to do with the government aspect of what
he!s been involved in, s#ch as arms shipments, or wo#ld it have to do with dr#g traffic)ing $$$
m#rder, or what*/
@ates ch#c)led, /ell, that so#nds li)e a pretty good pac)age to me$/
I la#ghed$ /I!m 0#st c#rio#s abo#t what yo#!re specifically foc#sing on$/
$e ans!ered, "I3, ocusin" on any cri,inal activities that Nichols is involved in# O2viously,
the ,ost si"niicant areas o interest are the dru"s, the ,urders and the "unrunnin"#"
I e&plained that it was very comple&$ I didn!t have my notes or /-orte&/ at my home, so I
s#mmari;ed as briefly as possible from memory what I had obtained from the bo&es in the %o0ave
desert$
@ates listened attentively$ hen I concl#ded, he noted, /'o yo# have these things Ireferring to the
doc#mentsJ p#t away where nobody else can get at them*/
/>es$ They are not in my home or anywhere on my property$/
@ates as)ed, /'oes anybody else )now where they are*/
I wondered if he tho#ght I might .OT be aro#nd in the near f#t#re$ /The person whose ho#se
they!re at$ .obody else$/
2is ne&t "#estion confirmed my s#spicion$ /hat if something happens to yo#* here do we find
them* 2ow do we find them*/
I noted that I had copies o#t with two people$ @ates as)ed, /(re they tr#stworthy*/
I said, /(bsol#tely$/
@ates pressed f#rther$ /The place where the original doc#ments are, can yo# tr#st that individ#al*/
/>es$ (bsol#tely$/
@ates seemed satisfied that the doc#ments were safe for the time being$ 2e reiterated that I wo#ld
have to be debriefed e&tensively and the information wo#ld be maintained #nder the (ttorney
@eneral g#idelines for confidential so#rces$
The word /(ttorney @eneral/ str#c) a cord in my conscio#sness$ />o# said N(ttorney @eneral,! yo#
mean thro#gh the 'O< I'epartment of <#sticeJ*/
@ates answered caref#lly, />eah$/
I la#ghed sardonically$ /This is getting f#nny $$$/
@ates h#rried to e&plain that it was only thro#gh the 'O< /g#idelines$/ 2e added, /It!s their r#les,
b#t they don!t have access to the information$/
I pointed o#t that I might consider tal)ing to him, beca#se I )new of his committment to b#sting the
dr#g cartels and finding Casolaro!s m#rderer$I added that I wo#ld never tal) to /the ,7I, "#ote,
#n"#ote,/ and @ates said that was o)ay$ 2e #nderstood$ +o I said, /e!ll go on from there then $$$/
I proceeded to describe the interviews with 4obert 7ooth .ichols$ hen I was finished, @ates
as)ed me what I was going to do with the information* I e&plained that I planned to write a
nonfiction boo) abo#t it beca#se m#ch of the information I had obtained thro#gh my investigation
had been independently s#bstantiated by the recently p#blished 2o#se <#diciary Committee 4eport
on Inslaw$
2owever, I had not decided what the foc#s of the boo) wo#ld be 1 the story still had to develop$ (
tho#ght occ#rred to me$ /I wo#ld be very interested in what yo#!ve e&perienced in yo#r
investigation right from day one$ That!s what the p#blic wants to read abo#t$/
@ates agreed, /It wo#ld ma)e a hell of a boo)$/ Then he added, "&o, ho! do !e put Nichols and
his "roup a!ayC" I answered simply, /I don!t )now, Tom, that!s yo#r department$/
I never sent the docu,ents and never spo/e to hi, a"ain until t!o years later !hen I !as hot
on the trail o (i/e %22ell#
GGGGGG
<ohn Connolly, a former .ew >or) police officer t#rned writer, was also researching the death of
'anny Casolaro$ Thro#gh so#rces #n)nown to me, he learned of my investigation, and after several
conversations, I agreed to send him doc#ments which he needed for his /Octop#s/ investigation$
7#t first, I demanded that he fa& me a letter protecting my copyrights and giving d#e credit$
Connolly fa&ed bac) the following letter, dated October 55, 1995= /I hereby agree that any and all
information, doc#ments, etc$ sent to me from yo# will be treated confidentially$ (ny information
s#pplied by yo# will not be #sed by me witho#t yo#r e&press permission$ ,#rthermore, in the event
that I p#blish a f#t#re story and #se any of the information s#pplied by yo#, yo# will receive the
proper reporting credits or bylines$ +incerely, <ohn Connolly$/
Connolly was a g#ngho 0o#rnalist, and apparently fo#nd it impossible to withhold s#ch provocative
information$ The <an#ary, 199? iss#e of +P> incl#ded m#ch of the information I had sent him in a
story entitled, /'ead 4ight,/ by <ohn Connolly$
2e had not obtained my permission nor given me a byline, b#t I didn!t hold it against him$ The story
was well written, and g#tsy, and I had to respect that$ 3ssentially, the story foc#sed on the death of
0o#rnalist 'anny Casolaro, b#t pages 6?6E gave an indepth profile of 4obert 7ooth .ichols, who
was portrayed as 'anny!s /dangero#s friend/ $$$ /The Lethal 4obert 7ooth .ichols$/
rote Connolly, /7y the late +pring of 1991, 4obert 7ooth .ichols had become one of 'anny
Casolaro!s most important so#rces$ They spo)e fre"#ently and at length $$$
"We /no! Nichols !as a ,an as co,orta2le in the under!orld as in the intelli"ence
co,,unity and that he !as associated !ith people !ho treated /illin" as an ordinary part o
doin" 2usiness#"
,7I agent Thomas @ates had identified .ichols in his sworn affidavit as a dr#g traffic)er and
money la#nderer stemming from a 19BK investigatin of %O7 activities in 2ollywood$
Interestin"ly, Nichols had 2een identiied 2y the 4'I as early as *FIG as 2ein" involved in
dru" traic/in", the very sa,e year that 6il2ert Rodri"ue1 !as indicted in Los %n"eles# I
wondered if .ichols and @ilbert 4odrig#e; had been connected in the ,7I investigation*
In 19B9, .ichols represented a gro#p of #n)nown investors who wanted to ta)e over +#mma
Corporation, the holding company of 2oward 2#ghes! empire$ 2#ghes had 0#st died, and .ichols
had convinced a +a#di company called (li and ,ahd +hobo)s)i @ro#p to become partners in the
8failed9 ta)eover attempt$
<oseph Cicippio, who was later ta)en hostage in Lebanon, was at that time the London manager of
(li M ,ahd$ Cicippio told &). he speciically re,e,2ered Nichols tellin" hi, he !as
representin" interests in the U#&# 6overn,ent and had 2een sho!n U#&# 8ustice Depart,ent
identiication 2y Nichols#
7y 19B1, .ichols had become partners with retired arms man#fact#rer Peter Fo)os)y and they
formed %eridian (rms, which in t#rn 0oined #p with ac)enh#t Corporation in a scheme to
man#fact#re arms on the Caba;on Indian reservation$
In %eridian!s "#est to provide g#ns for the Contras, .ichols had obtained all the re"#ired California
permits to possess and sell machine g#ns usin" reco,,endations ro, CI% oicial Larry
Curran#
Connolly pointed o#t .ichols! listing of 2arold O)imoto as a former employer on his application to
carry a concealed weapon, describing O/i,oto as "2elieved 2y intelli"ence sources to 2e a
hi"hran/in" ,e,2er o 8apan3s .a/u1a cri,e syndicate#"
3#gene @ia"#into, president of %C(!s 2ome 3ntertainment 'ivision, was mentioned as one of
%$I$L$!s board directors$ 8.ichols! %eridian International Logistics corporation9$ .oted Connolly,
/I,7IJ agents ca#ght @ia"#into and .ichols l#nching at Le 'ome, the swan) Los (ngeles show
b#siness resta#rant, and afterward transferring a bo& from @ia"#into!s car to .ichols!s$ The IwireJ
taps ca#ght them disc#ssing possible ta)eovers of %C(, and the effect on stoc) prices$ It !as also
evident ro, the !iretaps that 6iaBuinto en0oyed a special relationship !ith 8ohn 6otti ###"
Tho,as 6ates testiied 2eore the $ouse 8udiciary Co,,ittee on Insla! that he had t!ice
heard ro, inor,ants that Nichols had put a contract out on his lie# In <#ly 1991, 'anny
Casolaro became somewhat alarmed and began confiding in Thomas @ates$ .ichols had flown from
P#erto 4ico to ashington '$C$ to meet with Casolaro, staying several days$
+P> didn!t )now what they tal)ed abo#t, b#t after .ichols left, Casolaro told (gent @ates that
.ichols had warned him, /If yo# contin#e this investigation, yo# will die$/ Three days before his
death, 'anny had as)ed @ates whether he sho#ld ta)e .ichols!s threats serio#sly*
On <#ly ?1, 1991, Casolaro had also spo)en with Richard &tavin, a or,er special prosecutor or
the 8ustice Depart,ent !ho had 2een assi"ned to the (C% case +see )a"e IG-# In his
investi"ation o (C%, &tavin had unearthed docu,ents i,plicatin" Nichols as a ,oney
launderer !ith ties to the 6a,2ino cri,e a,ily and the .a/u1a#
Connolly wrote, /'anny m#st have tho#ght he hit the 0ac)pot$/ +i& days after spea)ing to +tavin,
'anny Casolaro, /who still had a yo#ng man!s vision of his immortality,/ had a long phone
conversation with 4obert 7ooth .ichols, b#t the contents of that conversation were #n)nown to
Connolly$
&). also intervie!ed %llan 'oya/, a or,er CI% operative no! practicin" la! in Utah, who
had )nown .ichols for 1E years$ 7oya) told +P>, "Nichols is lethal#" % transcript o a
conversation 2et!een 'oyac/, (ichael Riconosciuto and or,er 4'I a"ent Ted 6underson,
+!hich I had sent Connolly a copy o- descri2ed an occasion in !hich Nichols !anted to
deliver a ,essa"e to a ,o2ster ro, Chica"o# Nichols hun" a ,an upside do!n on a hoist in
an airplane han"ar in ront o a prop plane, then started the en"ine o the plane and revved it
up, so that the ,an han"in" on the hoist !as suc/ed to!ard the propellers# %ccordin" to
Riconosciuto, "'y the ti,e 'o2 "ot inished !ith hi,, he !anted to die#"
GGGGGG
hat Connolly failed to report in his article was the name of the man who had been /h#ng #p$/ $is
na,e !as &a, (aro!it1, a proessional hit ,an, who had been /the trigger man/ in the nonfatal
shooting of 4obert ,errante, head of Consolidated +avings and Loan$
,errante had been involved with Patric) %oriarti, %arshall 4iconosci#to!s partner of A6 years$ It is
important to remember that 4obert 7ooth .ichols and %ichael 4iconosci#to had been close
associates since 196K$ Ted @#nderson had located, thro#gh his so#rces, the /trigger man/ in the
,errante shooting, and .ichols and 4iconosci#to had forced %arowit; to confess to his crime by
hanging him #pside down in front of the airplane propellar$
4iconosci#to recalled, / $$$ +o he I%arowit;J starts tal)ing $$$ and 7ob goes o#t of the room li)e this=
NOh my @od, I don!t want to hear anymore,! covering his ears$ This (aro!it1 starts conessin" to
every hit he3s ever done, incl#ding the 'orfman )illings in Chicago$ $$$ I mean, all hell brea)s
loose$ (ll of a s#dden Ted has fo#nd the torpedo in the 'orfman )illings $$$/ (fter the /hanging/
incident, %arowit; fled to Israel$
The transcript was ta)en from 4iconosci#to!s first 8taperecorded9 meeting with (lan 7oya) on %ay
E, 1991 at the attorney visiting room of the Tacoma, ashington ho#se of incarceration$
4iconosci#to had been arrested on %arch 59, 1991 by DE% a"ents, reportedly #nder the
s#pervision of %ichael T$ 2#rley, who had been transferred from .icosia, Cypr#s to ashington
state shortly before the arrest$It is significant that this arrest too) place e&actly eight days after
%ichael had signed the Inslaw affidavit on %arch 51, 1991$
%ichael already had a law firm representing him, <ohn Crawford and <ohn 4osalini, b#t Ted
@#nderson had bro#ght 7oya) into the case beca#se of the intense political ramifications$ In other
!ords, they needed so,eone to put to"ether a case a"ainst the "overn,ent oicials involved,
"so they could 2uy out cheap#"
'anny Casolaro had obtained a copy of that transcript from 7oya), according to Ted @#nderson
and 7obby 4iconosci#to$ 'o22y noted that Danny had ta/en the transcript to people in the
Depart,ent o 8ustice and conronted the, !ith it#
(ichael Riconosciuto later added that Ro2ert Nichols had lo!n to Washin"ton D#C# and
"ollo!ed Danny3s trail throu"h the DO8, doin" @da,a"e control3 and repudiatin" the
transcript#"
This may well be the enco#nter 8per +P> maga;ine9 that 'anny had with .ichols in ashington
'$C$ less than a month before his death in which .ichols had said, /If yo# contin#e with this
investigation, yo# will die$/
'anny had a #ni"#e habit of fearlessly /bo#ncing/ information from one person to another,
partic#larly between %ichael 4iconosci#to and 4obert 7ooth .ichols$ (fter the /transcript/
incident, it #ndo#btedly created a hostile climate between .ichols and 4iconsci#to$ 84iconosci#to
was attempting to trade information on .ichols!activities in e&change for his freedom9$
Nu,erous passa"es in the transcript openly na,ed narcotics traic/ers alle"edly !or/in"
under Ro2ert 'ooth Nichols# On page E?, 0#st one of many named was 'ryce Larsen, c#rrently
819919 operating a hotel for /one of 2arold O)imoto!s people in Thailand,/ !ho s,u""led China
White heroin into the U#&## "The DE% sei1ed t!o lear 0ets ro, hi, the last ti,e they 2usted
hi,," noted Riconosciuto#
/+)ip <ahota 8phonetic sp$9 was here trying to recr#it people to go to wor) in Thailand, and to
offload the boats when they bring the st#ff in Ito the D$+$J$ They3ve "ot so,e heroin co,in" in in
the ne5t e! !ee/s, a rather lar"e ###"
7oya) interr#pted, / $$$ There!s a big case in %iami where a female blac) (ssistant D$+$ (ttorney is
handling this gal I was telling yo# abo#t, b#t that!s $$$ I don!t want to go into details on that beca#se
she!s in a witness protection program $$$/
4iconosci#to added, /ell, she!s probably wor)ing against the %artin brothers $$$/
7oya) inter0ected, /.o, it!s against LarsenO/
On pa"e H:, Riconosciuto 2rou"ht %l $ol2ert, the Israeli intelli"ence a"ent, into the picture#
" ### No! the other area !here I can do so,e real da,a"e is %l $ol2ert3s procure,ent o
che,icals nation!ide# 2e has a mailorder chemical company that is mailing o#t chemicals right
now$ hat they do is they mail o#t large m#ltiple orders #nder threshhold limit val#e for the
reporting re"#irements #nder the new '3( reg#lations$ Li)e with Phenol acidic acid, it!s one )ilo a
month, so they mail o#t B66 grams per month to one c#stomer$ (nd they!ve got fifty c#stomers $$$/
7oya) as)ed, /here are they doing that*/
%i)e answered, /In %iami, ,lorida$/
'ut, Riconosciuto added, in the Caliornia operation, $ol2ert and Richard =no11i !ei"hed
their dru"s on U$aul truc/sP "When they do their ,eth la2, they usually do *,<AA to 9,AAA
pounds#"
2olbert!s address was listed at ,t$ %ead$ 4iconosci#to informed 7oya) that 2olbert was a former
Israeli intelligence officer who came to the Dnited +tates to give special ed#cation classes to law
enforcement agencies$ /2e!s dirty as the day is long,/ he added$ /2e!s o#t of O%- now$ I don!t
)now what O%- is doing at ,t$ %ead$/
7oya) had inter0ected, /<#st so yo# )now, beca#se it may clic) with yo#$ ,t$ %ead has head"#arters
I+CO% 8Intelligence +ec#rity Command9 which has part of the intelligence networ) for the 'elta
,orce$/
In another section of the 6Epage transcript, 4iconosci#to detailed his operation with Tyme +hare
Inc$ something he had been #nable to disc#ss with me on the 0ail phone$ /7arry +mith, who is an
associate of 7ob .ichols, had done some research on some interloc)ing directorates with the board
members of ac)enh#t, and I started to reali;e how deeply involved in the .#gen2and 7an) the
ac)enh#t people were$
/Pa#l %orasca and I were very close to %ichael 2and Iformer President of .#gen2and 7an) of
(#straliaJ$ .ow he!s on the r#n, in Canada$ I had a complete set of all the records for .#gen2and
that had not been destroyed$/
7oya)= /hat f#nction were yo# doing for them*/
%i)e= /I set #p the data processing base$ +ee, I was a principle in Tyme +hare, Inc$ 'o yo# )now
what Tyme +hare is*/
7oya)= /.o$/
%i)e= /This is a giant comp#ter comm#nications company, and all the <#stice 'epartment field
offices comm#nicate via Tyme .et$ ,OI%+ 8,ield Office Information %anagement +ystem9 for the
,7I is all done via Tyme .et$ O)ay* %ost of yo#r big ban)ing instit#tions $$$/
7oya) interr#pted, /I!m not even a #ser friendly person $$$/
%i)e contin#ed, /I had the .#gen2and records and I analy;ed the sit#ation and I loo)ed at the
+a#di position$ They were ta)ing people!s paychec)s, yo# )now, foreign wor)ers, and giving them
#nbelievable deals 0#st to p#t their money in the ban) $$$/
7oya)= / $$$ (nd they were s)imming the interest*/
%i)e= />eah, oh yeah$ +o, what I did $$$ I was loo)ing at bloc) transfers on +wift Chips, and
reconciliations $$$/
7oya)= / $$$ >o#!ve lost me there$/
%i)e= /(nyway, what I did was I screwed #p everything with the a#tomated clearing ho#se
between .#gen2and $$$/
7oya)= / $$$ +o nothing co#ld be li"#idated$/ P
%i)e= /.o, what I did was I created a virt#al ban) on the a#tomated clearing ho#se system and I
f#nneled all that money into it, and then I f#nneled it o#t of there into bloc)ed c#rrencies $$$/
7oya) interr#pted again= /I can!t trac) the technical paper trail$ hat I!m trying to do is get to the
bottom line $$$/
GGGGGG
The bottom line was, 'anny Casolaro allegedly carted the above transcript aro#nd the 'epartment
of <#stice, demanding answers$ Less than a month later he was dead$ The transcript gave details of
the Cobra helicopter shipments to Ira", via .orth Corea, corporate str#ct#res, #ndercover
operatives, espionage activities, advanced weapons technology tested at the .evada .#clear test
site, and m#ch more$
/+omething/ in the transcript p#shed some b#ttons, b#t we can only theori;e as to /whose/ b#ttons
were p#shed$
GGGGGG
In all fairness, it is necessary to relate 4obert 7ooth .ichols! response to (lan 7oya)!s acc#sations
abo#t him$ The following narrative originiated from a phone conversation with .ichols in which he
said /7oya) was #nbelievable$/
8.ichols spea)ing9= /I )now what he said abo#t me, and that!s all well and dandy$ 7#t I don!t )now
why he said it$ It!s all totally false$ The g#y co#ld not be doing this #nless he was #nder the orders
of someone$ Or he!s cra;y$
/The thing with this 7oya), he said I was involved in 7CCI, he said narcotics traffic)ing, he said
money la#ndering $$$ as did the ,7I$
/The point is, I )now people inside the b#rea# I,7IJ, I )now people inside the agency ICI(J, I
)now people inside government who are very responsible people$ I spea) to people as individ#als,
not as initials$ In other words, I wo#ldn!t tal) to the ,7I, I wo#ld tal) to an agent that I )new in the
,7I who was honest$ Or I wo#ld tal) to an agent in the company, or the CI(, who I )now is honest,
b#t I wo#ldn!t tal) to them as a whole, or someone I didn!t )now$ 7eca#se I thin) they!ve become so
corr#pt and poll#ted that they don!t )now what they!re doing half the time $$$
/+ome people in government are e&tremely concerned abo#t it$ They!re very m#ch involved with it$
I mean, the honest ones are the biggest critics $$$
/ith regards to the >a)#;a, I don!t )now them$ To my )nowledge, I!ve never been aro#nd them$
ith regard to the %afia, I don!t )now them$ To my )nowledge, I!ve never been aro#nd them$ ith
regards to narcotics, I hate narcotics$ (nd anyone who!s )nown me for any length of time, and my
friends are all old friends, )nows that I hate narcotics, have never been aro#nd them, have never
seen heroin in my life $$$ e&cept on television$ +o, it ma)es me wonder and many other people that
are friends of mine, wonder what agenda $$$ who!s #p to what* 4ight*
/The Tong, I don!t )now them, nor have I ever been aro#nd them to my )nowledge$ One story
Inewspaper articleJ said II wasJ a hit man for the Tong$ That was one story$ I!ve never been a hit
man for anything, incl#ding Tong, which is the Chinese mafia$
/(s) yo#rself this$ I s#ed them Ithe ,7IJ, right* e were told, N'on!t s#e them,! by a lot of people$
NCill everybody, don!t s#e them$! 7#t the point is, there are a lot of people overseas that said p#rs#e
them anyway, and that!s it, period$ +o, it comes down to one thing, really$ hen we get to the
co#rtroom, we are not going to say, NThis is this, and that is that, and tr#st #s$! e!re going to
doc#ment everything we say $$$/
hen I as)ed .ichols if %ichael 4iconosci#to had wor)ed for the CI(, he said, /hy don!t yo#
call the CI( and as) them$ I!m s#re they!re listed in the phone boo)$/
GGGGGG
.ichols! laws#it against Thomas @ates and the Los (ngeles ,7I was dismissed twice in federal
co#rt$ 2owever, he later filed a laws#it against the Los (ngeles Police 'epartment for alleged false
arrest stemming from a 19B6 incident at the Palomino nightcl#b in .orth 2ollywood$
In (arch *FF:, Nichols stated on the !itness stand that he !or/ed or the CI% or nearly t!o
decades# 2is laws#it charged that as a res#lt of his detainment by the L(P', the +anta Clara
Co#nty +heriff!s 'epartment rescinded his concealed weapons permit$ That action, .ichols claimed,
res#lted in the loss of +wiss financing for a m#lti1million dollar deal to man#fact#re machine g#ns
in +o#th Corea$
Nichols also testiied that he had no visi2le inco,e or ,ore than *< years e5cept or the livin"
e5penses he received ro, the CI%# 2e said he was recr#ited into the CI( while living in 2awaii
in the late 1966!s by a man named /Cen$/ Cen had told him that instead of 0oining the D$+$ military,
he co#ld serve his co#ntry in other ways$ 2e was instr#cted to ta)e a 0ob with a 2awaiian sec#rity
firm 8O)imoto*9 and later to move to @lendale, California to 0oin a constr#ction company
8Pender*9$
4ro, that point until *FGH, Nichols !or/ed intelli"ence "atherin" operations in ,ore than :A
nations ro, Central %,erica to &outheast %sia# To prove this, .ichols! lawyer, <ohn ,$ 'enove,
s#pplied the co#rt with a list of ashington '$C$ personages to be s#bpoenaed which #ltimately
ca#sed <#dge Thomas C$ %#rphy to declare a mistrial$ .o record was ever made p#blic of that list
of names, tho#gh Thomas @ates 8,7I9 and 2enry einstein of the Los (ngeles Times respectively
conir,ed its e5istence over the phone, b#t neither wo#ld div#lge the names$
C$%)TER *;
In (#g#st 199A I placed several calls to <ohn Cohen, former investigator for the 2o#se <#diciary
Committee on Inslaw, to follow #p on Cohen!s investigation of %i)e (bbell and Casolaro!s findings
on him prior to his death$ Cohen !as no! stationed at the Oice o National Dru" Control
)olicy at the E5ecutive Oices o the )resident +Clinton- in Washin"ton D#C#
I also made calls to +pecial (gent Thomas @ates at the Los (ngeles <oint 'r#g Intelligence @ro#p,
who originally testified before the 2o#se <#diciary Committee on Inslaw$ @ates had spo)en with
Casolaro d#ring the wee) before his death and I felt he might help me to identify what Casolaro
learned abo#t (bbell$ 7oth men were congenial, b#t hesitant to tal) abo#t (bbell at that point in
time$
I then called the yo#ng C#stoms (gent to whom I had given the affidavit mentioning %i)e (bbell
in ,ebr#ary 199?$ 2is s#pervisor said he !as stationed in (ia,i, 4lorida and p#t me in to#ch
with him$ 2e too was cryptic and #ncomm#nicative abo#t %i)e (bbell$
I soon discovered !hy# % e! !ee/s later, on &epte,2er Fth, *FF;, the 4'I raided the la!
oices o (ichael %22ell in Washin"ton D#C# The raid !as the result o a (ia,i ederal
"rand 0ury pro2e o the Cali Cartel# (s of that date no criminal charges had yet been filed against
(bbell$
I had also placed a call in +eptember 199A to +teve Fipperstein, Chief (ssistant D$+$ (ttorney in
Los (ngeles, who cond#cted an investigation for the 'O< on Inslaw and Casolaro in 199A$
Fipperstein was #ncooperative and defensive when approached abo#t Casolaro!s investigation of
%ichael (bbell and @ilberto 4odrig#e;$
Less than two wee)s later, the 'O< report was released to the p#blic with no mention of %i)e
(bbell, @ilberto 4odrig#e;, 4obert 7ooth .ichols, or any of the aforementioned information in this
man#script, incl#ding ,$I$'$C$O$, tho#gh it was available for scr#tiny thro#gh many so#rces$
GGGGGG
In .ovember, 199A, TI%3 maga;ine reported that the E6year old @ilberto 4odrig#e; was /stressed
o#t/ and see)ing to s#rrender to the Col#mbian 0#stice system in e&change for red#ced 0ail time,
perhaps three or fo#r years, and his fort#ne left intact$ In a Col#mbian 0ail, this wo#ld inevitably
amo#nt to a "#iet vacation$
2owever, @ilberto insisted that any deal wo#ld have to be endorsed by the Dnited +tates$ In ret#rn,
the 4odrig#e; brothers, @ilberto and %ig#el, wo#ld g#arantee that a large percentage of Col#mbian
dr#g dealers wo#ld be willing to get o#t of the dr#g b#siness and dismantle their infrastr#ct#re, their
labs and their ro#tes$ The estimated net effect wo#ld be a 66R red#ction in the dr#g s#pply to the
D$+$ alone$
Prior to 4odrig#e;!s offer, President +amper had anno#nced that it wo#ld be necessary to dismantle
the Cartels rather than incarcerate their leaders$ (n aide to +amper noted that the door was open to a
s#rrender program$
In light of everything I had learned to date, I co#ld not help wondering what price did the D$+$
government pay to bring the Cartels to the point of s#rrender*
GGGGGG
On 8une Hth, *FF<, The Washin"ton )ost 2ro/e the ne!s a2out (i/e %22ell in a ront pa"e
story entitled, "E5R)rosecutors Indicted in Cali Case#" Three or,er ederal prosecutors,
includin" (ichael %22ell, !ho served "as a top ran/in" 8ustice Depart,ent oicial, !ere
na,ed in an indict,ent >on 8une <th? in (ia,i alon" !ith <H others as part o a 2road
rac/eteerin" case a"ainst the Colu,2iaR2ased Cali Cartel ###"
8ose Londono, a ounder o the Cali Cartel, and Donald 4er"uson, an assistant U#&# attorney
in (ia,i !ere also char"ed# 4or,er assistant U#&# attorney 8oel Rosenthal pled "uilty in the
case to char"es o ,oney launderin"# %22ell and other la!yers aced char"es o ,oney
launderin", dru" conspiracy and rac/eteerin"# The indict,ent char"ed the, !ith o2struction
o 0ustice, preparin" alse aidavits and conveyin" !arnin"s to arrested cartel ,e,2ers that
they should not cooperate !ith "overn,ent investi"ations#
The ashington Post noted that, #ltimately, it was not e&pensive cocaine interdiction on the high
seas, b#t detective wor) by a team of %iami1based D$+$ C#stoms agents and the 'r#g 3nforcement
(dministrtion that compiled the evidence necessary to bring the 1611page indictment$
Trac)ing cartel shipments, a#thorites fo#nd cocaine hidden inside A61foot cargo containers #sed to
ship fro;en vegetables, l#mber, concrete posts and coffee$ The sm#ggling system effectively evaded
D$+$ radar planes and naval vessels deployed in the Caribbean$ The rac)eteering case began when a
load of cement posts and cornerstones arrived in the Port of %iami on (#g#st 5?, 1991$ '3( and
C#stoms agents fo#nd 15,5E6 )ilos of cocaine hidden inside their hollow cores$
GGGGGG
&i"niicantly, in early (arch *FF<, T$REE (ONT$& 'E4ORE the (ia,i indict,ent !as
unsealed, I had received a letter ro, (ichael Riconosciuto who had learned of the initial raid
on %i)e (bbell!s law offices$ 2e wrote as follows= 84eferring to his trial in 19919
" ### >Durin"? pretrial I ,ade an on the record proer in an atte,pt to dispose o this case#
The U#&# %ttorney re0ected it as "ar2a"e# That !as in *FF*# No! in *FF<, it is a ,a0or case# In
,y proer, I outlined a sophisticated s,u""lin" sche,e# It involved plastic ite,s and concrete
products# I na,ed 2oth %c/er,an and %22ell#
"The DO8 no! has evidence sei1ed ro, attorney3s oices# The ce,ent ite,s !ere handled
throu"h TR%NC% Corporation# The speciali1ed eBuip,ent to ,a/e concrete posts and 2ea,s
ca,e ro, Taco,a, Washin"ton# The aircrat ca,e ro, a Canadian 2ro/era"e /no!n as
T$%'ET %viation in Mue2ec City, Canada#
"Ray,ond Tha2et is Le2anese and has special contacts that "ive hi, privile"ed access to
Canadian ,ilitary surplus# 4ourteen +*;- o these planes !ere handled throu"h %22ell and
La"una# %ll the paper!or/ !as handled 2y Ed &,ith in Darrin"ton, Washin"ton state# These
!ere e5Rsu2,arine patrol planes# &peciali1ed electronics !ere provided#
"%n insider in Custo,s !as involved R Richard Card!ell#
"This is heavy stu# The act that I detailed it in *FF* de,ands an e5planation# 4orty +;A-
tons o co/e >cocaine? !ould have 2een stopped# I !ant a direct e5planation ro, Teresa 7an
7let#" &i"ned "(i/e R#" -an -let reportedly wor)ed in the dr#g enforcement administration of
the 'epartment of <#stice$
GGGGGG
C$%)TER *<
I was never able to rectify the p#rpose behind the biological technology that 4obert 7ooth .ichols
was involved in developing with the <apanese$ hy did his patents stress the /%ethod for Ind#ction
and (ctivation/ of Cytoto&ic TLymphocytes* It is noteworthy that 2arold O)imoto, .ichols!
godfather and a member of his 7oard of 'irectors, had allegedly been a highran)ing intelligence
officer d#ring orld ar II$
hile reading 'ic) 4#ssell!s boo), /The %an ho Cnew Too %#ch,/ I came across a chapter
referencing <apanese biological e&periments cond#cted d#ring orld ar II$ In one passa"e +pp#
*9<*9H-, Russell noted that, at the end o World War II, Charles Willou"h2y, 6eneral Dou"las
(ac%rthur3s chie o intelli"ence, had sei1ed 8apanese la2 records on "er, !arare# When
the )enta"on deter,ined that the 2iolo"ical research ,i"ht prove useul in the Cold War, the
8apanese responsi2le or the e5peri,ents received i,,unity ro, prosecution in e5chan"e or
their cooperation#
(t least three tho#sand people died as a res#lt of those e&periments, incl#ding an #n)nown n#mber
of capt#red D$+$ military personnel$ /Only in 19B5 did this seamy story come to light, incl#ding the
Pentagon!s 19AK ac)nowledgement of illo#ghby!s Nwholehearted cooperation! in arranging
e&amination of the h#man pathological material which had been transferred to <apan from the
biological warfare installations,/ wrote 4#ssell$
(nother p#blication, entitled /Dnit K?1/ by Peter illiams and 'avid allace, gave a detailed
bac)gro#nd on bacteriological warfare e&periments cond#cted by all of the ma0or combatants
d#ring orld ar II$ hen the Dnited +tates government determined that the (&is Powers,
incl#ding 4#ssia, were eval#ating this weapon, it became necessary to st#dy the possibilities$ This
lead to the tho#ght that if one prepared for offensive bacteriological warfare, then one m#st also
prepare for defensive bacteriological warfare$
2owever, history shows that that reasoning bro)e down with the first #se of n#clear weapons by the
Dnited +tates in <apan to finish the war in the 3ast "#ic)ly$ That action saved (merican lives if a
land attac) on the islands had been effected, b#t the principle is obvio#s$ o#ld the D$+$ do the
same thing with vir#ses and bacteria*
In 19?9 the 4oc)efeller Instit#te for %edical 4esearch in .ew >or) st#died the vir#lent,
#nmodified strain of yellow fever vir#s, ostensibly for the p#rpose of developing a c#re for the
disease$ The laboratory at that time was #nder the direction of 'r$ ilb#r +awyer$ It was in 19?9
that a <apanese (rmy doctor, 'r$ 4yoichi .aito, visited the laboratory with credentials from the
<apanese military attache in ashington to obtain a sample of that strain of the >ellow ,ever vir#s$
( report of that incident was s#bse"#ently sent to the (rmy +#rgeon @eneral and after eval#ation of
similar incidents, it was determined by (rmy Intelligence that <apan was interested in the yellow
fever vir#s for bacteriological warfare p#rposes$
7ased on that information, along with other corollary information, the decision was made to b#ild
,ort 'etric) near ,rederic), %aryland to provide a secret laboratory for the st#dy and development
of defensive and offensive capability to wage bacteriological warfare 879$
The secrecy of the pro0ect was of the same magnit#de as the n#clear wor) done within the
%anhattan Pro0ect$ ,rom the writings and speeches given by the military men associated with this
pro0ect, it is apparent that they were gen#inely concerned for the sec#rity of the Dnited +tates, b#t
inside this organi;ation and within the government at large, was a potential for #lterior motives$
8%ore on that later9$
7y 19AA, more than s#fficient evidence had been gathered by (merican intelligence #nits to
indicate that <apan was deeply involved in bacteriological warfare$ Thirtytho#sand bombs,
man#fact#red at the Osa)a Chemical 4esearch Instit#te in <apan, containing typh#s, diptheria and
b#bonic plag#e were sent to the Chinese front$
7y then, overwhelming evidence was coming in, partic#larly regarding research being cond#cted by
%a0or @eneral +hiro Ishii who was awarded a Technical %eritorio#s %edal with highest degrees$
(fter the war, (merican intelligence learned that @eneral Ishii, thro#gh an organi;ation called /Dnit
K?1,/ cond#cted his more serio#s research at a camp in northern %anch#ria$ It was here that
@eneral Ishii e&perimented on h#man beings$
The e&periments cond#cted on those h#man beings made <apan the world!s leading a#thority on
offensive and defensive bacteriological warfare systems$ .o other co#ntry, Ishii reasoned, wo#ld
have e"#ivalent technical data on how epidemics spread and how to protect against them$
<apan!s fascination with biological warfare dates as far bac) as 19?5, when e&perimentation on
prisoners already sentenced to death was cond#cted at 2arbin, b#t later d#ring the war with China,
the <apanese #sed prisoners of war$ hite 4#ssians, ca#ght in the area of <apan!s war with China
were also #sed, according to an interrogated <apanese army officer$
3ach prisoner was placed in a closely g#arded cell where the e&periments were cond#cted$ (fter
each prisoner died, they were cremated in an electric f#rnace to remove all evidence of what had
occ#rred$ +tarting in 19?E, motion pict#res of the e&periments were ta)en and these were shown to
senior army officers$ It was reported that ?,666 were sacrificed at a separate test site called Pingfan$
hy was it re"#ired to #se so many h#mans*
The <apanese had learned that epidemics occ#rred nat#rally b#t the method for ind#cing and
activating them artificially was more diffic#lt$ In order to find the most efficient method of
transmittal, many e&periments were needed to find the lethal doses re"#ired to spread the agent$
hat wo#ld wor) with animals might not necessarily wor) with h#mans$ (lso, a method was
needed for imm#ni;ation and only h#mans co#ld be #sed for that p#rpose$
@eneral Ishii tho#ght that the est!s moral codes wo#ld not allow for s#ch e&perimentation and that
alone wo#ld p#t <apan on the leading edge of s#ch technology$ 2ealthy h#mans were needed, so
e&tensive medical tests were even cond#cted on prospective prisoners$ 'iseases were forcibly
in0ected or administered with a special stic)shaped g#n$ +ome prisoners were infected thro#gh food
or drin)$ Cholera, anthra&, T7, typhoid, ric)ettsia and dysentry were b#t a few of the bacteria #sed
in the tests$
Live h#man prisoners were also e&posed to chemical warfare agents s#ch as m#stard gas, hydrogen
cyanide, acetone cyanide and potassi#m cyanide$ 2ydrogen cyanide was given e&tensive st#dy
beca#se of its potential for ease of delivery into water s#pplys$ In some instances, live h#man
victims were act#ally opened #p to observe the progress of vario#s diseases and chemicals$
(t one point, (merican intelligence learned that <apan had developed techni"#es for efficient
delivery of 7ot#lin#s, a germ that attac)s the central nervo#s system followed by paralysis and
rapid death$ -ast "#antities of 7ot#lino#s germs were developed at ,ort 'etric) and a vaccine was
h#rriedly in0ected into all military personnel involved in the invasion of 3#rope$
hat the Dnited +tates s#bse"#ently did with the technical data from the <apanese e&periments,
#nder the direction of @eneral Charles illo#ghby, was shoc)ing$ '#ring the ar Crimes Trials in
<apan following orld ar II, /sweetheart deals/ were arranged between the Dnited +tates and
<apan to sec#re that data$ Colonel %#rray +anders was assigned to @eneral 'o#glas %ac(rth#r,
along with @eneral Charles ilo#ghby 8Chief of Intelligence9 and Carl T$ Compton 8Chief of
+cientific Intelligence9$ @eneral %ac(rth#r specifically assigned these men to investigate the
<apanese bacteriological warfare e&periments$
'#ring the war, Lt$ Col$ +anders, a medical doctor, had been responsible for investigating and
analy;ing the capabilities of the <apanese in bacteriological warfare$ 2e had also overseen the ,ort
'etric) e&periments$ hen the Legal +ection of the D$+$ government tried to obtain the <apanese
lab records on h#man e&perimentation from @eneral %ac(rth#r!s staff, they were stonewalled$
%ac(rth#r!s staff reasoned that if the D$+$ (rmy!s investigative evidence was given to the Legal
+ection in ashington '$C$, the 4#ssians wo#ld have access to the records$ This so#nds logical on
the s#rface, b#t the res#lting memorand#ms tell another story$
The +tatear.avy Coordinating Committee 8+.CC9 responsible for coordinating and overseeing
the war crimes trials in <apan, made an e&traordinary statement which concl#sively s#pported the
intelligence comm#nity!s stance on the matter$ One e&cerpt read as follows=
/'ata already obtained from Ishii and his colleag#es has proven to be of great val#e in confirming,
s#pplementing and complementing several phases of D$+$ research in 7, and may s#ggest new
fields for f#t#re research$ This 8apanese inor,ation is the only /no!n source o data ro,
scientiically controlled e5peri,ents sho!in" direct eect o 'W >2acteriolo"ical !arare?
a"ents on ,an# In the past it has been necessary to eval#ate effects of 7 agents on man from data
thro#gh animal e&perimentation$ +#ch eval#ation is inconcl#sive and far less complete than res#lts
obtained from certain types of h#man e&perimentation$
/It is felt that the #se of this information as a basis for war crimes evidence wo#ld be a grave
detriment to <apanese cooperation with the Dnited +tates occ#pation forces in <apan$ ,or all
practical p#rposes an agreement with Ishii and his associates that information given by them on the
<apanese 7 program will be retained in intelligence channels is e"#ivalent to an agreement that
this @overnment will not prosec#te any of those involved in 7 activities in which war crimes
were committed$ +#ch an #nderstanding wo#ld be of great val#e to the sec#rity of the (merican
people beca#se of the information which Ishii and his associates have already f#rnished and will
contin#e to f#rnish$/
The asto#nding concl#sion went as follows= /The val#e to the D$+$ of <apanese 7 data is of s#ch
importance to national sec#rity as to far o#tweigh the val#e accr#ing from Nwar crimes! prosec#tion$
In the interests of national sec#rity it wo#ld not be advisable to ma)e this information available to
other nations as wo#ld be the case in the event of a Nwar crimes! trial of <apanese 7 e&perts$ The
'W inor,ation o2tained ro, 8apanese sources should 2e retained in intelli"ence channels
and should not 2e e,ployed as @!ar cri,es3 evidence#"
Comm#nications between ashington '$C$ and @eneral %ac(rth#r!s head"#arters in <apan were
very revealing$ One e&cerpt read as follows=
" ### The eelin" o several sta "roups in Washin"ton, includin" 69, is that this pro2le, is
,ore or less a a,ily aair in the 4ar Eastern Co,,and#"
.o mention was ever made d#ring the war crimes trials in <apan abo#t bacteriological warfare or
chemical warfare e&periments being cond#cted on h#man test specimens$ .o indictments were ever
handed down against those who had perpetrated these crimes$ Colonel +anders was ordered bac) to
the Dnited +tates to brief scientists at ,ort 'etric) b#t shortly thereafter became ill with
t#berc#losis and spent the ne&t two years in bed$ Oddly, the e&pert who was sent to replace Colonel
+anders, (rvo Thompson, committed s#icide following his wor) for the ,ar 3astern Command and
the scientists at ,ort 'etric)$
What happened to all o the 8apanese oicers and scientists !ho !or/ed in the (anchurian
la2s durin" World War IIC The military officers were retired on si;able pensions and the civilian
scientists continued their !or/ !ith so,e o the lar"est che,ical and ,edical co,panies in
8apan# +ome became presidents and professors at leading #niversities, others became a part of the
ind#strial comple& which so s#ccessf#lly competed with the est for international trade$
8.OT3= Insert names of <apanese scientists and officers and their relationship to the <apanese
scientist!s names on %IL I.ichols! corporationJ agreements for development of biological
technology with <apanese$ 9
Nu,erous 2oard directors o 4#I#D#C#O#, o !hich Nichols !as also a director, had 2een closely
associated !ith 6eneral Dou"las (ac%rthur# In act, Clint (urchison, &r# had helped inance
(ac%rthur3s presidential ca,pai"n#
GGGGGG
The -anity ,air article by 4on 4osenba#m had noted on page 9B that not long before his death,
'anny Casolaro had reportedly approached a n#rse he )new and as)ed her closely abo#t the
symptoms of m#ltiple sclerosis and brain diseases$
4osenba#m had as)ed himself what had been going on in 'anny!s head as he was being whipsawed
between the shadowy 4iconosci#to and .ichols and their death warnings* In 'anny!s notes,
4osenba#m had fo#nd references to germ warfare and slowacting brain vir#ses li)e %ad Cow
'isease which co#ld be #sed against targeted individ#als$ 2ad 'anny tho#ght 23!' been targeted*
( s#bse"#ent conversation with %ichael 4iconosci#to confirmed 4osenba#m!s s#spicions$
(ccording to 4iconosci#to, 'anny had not only been concerned, b#t had an obsession with the
story beca#se he s#spected he!d been /hit by these people$/ ( so#rce had allegedly told 'anny that
he, among others, had been targeted with a slow acting vir#s$ 4iconosci#to had advised him to go to
a doctor and get tests$ The tests had been inconcl#sive$ /.ow, what he probably had was the genesis
of a nat#rally occ#rring ailment,/ said 4iconosci#to to 4osenba#m$
4osenba#m had described the entire Inslaw:Casolaro affair as /Caf)aes"#e weirdness$/ Indeed,
after .ichols had handed me the boo), /The +earch for the %anch#rian Candidate/ at his +herman
Oa)s apartment, I had obtained a copy and recalled the a#thor, <ohn %ar)s, referring to the CI(
%CDltra 8%anch#rian Candidate9 interrogation methods as Caf)aes"#e in nat#re$ Tho#gh 'anny!s
notes mentioned nothing abo#t /mindcontrol,/ and 7ill 2amilton later noted that 'anny had spo)en
mainly abo#t the biologicals, I fo#nd it diffic#lt to believe that he was not s#b0ected to some form
of mind control either s#bliminally or otherwise by someone in the field$
GGGGGG
"The &earch or the (anchurian Candidate" "ave si"niicant 2ac/"round on the history o
2iolo"ical !arare and ,indcontrol research 2y the CI%# The a#thor, <ohn %ar)s, obtained
m#ch of his material ro, seven 2o5es o heavily censored (=Ultra inancial records and
another three or so %rticho/e +CI% 2ehavorcontrol pro"ra,-, docu,ents s#pplemented by
interviews$
(s early as 19A?, the CI(, or act#ally its predecessor, the O++, initiated /h#manistic psychology,/
or st#dies of what the brain can do, d#ring orld ar II when a /tr#th dr#g/ co,,ittee headed 2y
Dr# Winred Overholser conducted e5perie,ents !ith ,ari0uana and ,escaline to ind a !ay
to induce prisoners to coness# ( parallel O++ gro#p had also investigated the #se of /"#iet#s
medications/ lethal poisons for possible #se against (dolf 2itler$
The original program was headed by @eneral illiam /ild 7ill/ 'onovan, a b#rly, vigoro#s
4ep#blican millionaire who had started as hite 2o#se intelligence advisor even before Pearl
2arbor$ ( former Col#mbia College and Col#mbia Law @rad#ate, 'onovan early on recr#ited
4ichard 2elms, a yo#ng newspaper e&ec#tive who had gained fame for interviewing (dolf 2ilter in
19?6 while wor)ing for Dnited Press$ 2e wo#ld s#bse"#ently become the most important sponsor
of mindcontrol research within the CI(, n#rt#ring and promoting it thro#gho#t his steady climb to
the top of the (gency$
'espite harsh condemnation at the .#remberg trials after orld ar II of .a;i scientific
e&periments, D$+$ investigators fo#nd the research records from the 'acha# prison camp to be /an
important complement to e&isting D$+$ )nowledge$/ 'octors connected to the +$+$ and @estapo had
cond#cted e&periments that led to the testing of mescaline on prisoners at 'acha#$ Their goal had
been to /eliminate the will of the person e&amined$/
The 8apanese, or their part, had stoc/piled che,ical and 2iolo"ical !arare su2stances
durin" World War II and even !ent so ar as to drop deadly anthra5 "er,s on China durin"
the early sta"es o the !ar# O&& responded 2y individuali1in" C'W +Che,ical and 'iolo"ical
Warare- and creatin" ,ethods o secretly disorientin", incapacatin", in0urin" or /illin" an
ene,y at 4ort Detric/#
The CI(!s postorld ar II mindcontrol program was headed by 'r$ +idney @ottlieb, who presided
over investigations that ranged from advanced research in amnesia ca#sed by electroshoc) to
dra"net searches throu"h the 0un"les o Latin %,erica or to5ic leaves and 2ar/s# @ottlieb!s
office not only fo#nd ways to ma)e ,idel Castro!s beard fall o#t, b#t he personally provided
operators with deadly poisons to assassinate foreign leaders li)e the Congo!s Patrice L#m#mba$
Other areas of CI( sponsored research incl#ded e&plorations of personalities$ 2enry %#rray, a
former 'onovan protege, devised a battery of tests which co#ld si;e #p the personality of potential
CI( recr#its as well as predict f#t#re behavioral patterns$ "&pyin" is attractive to loonies," !rote
(urray# ")sychopaths, !ho are people !ho spend their lives ,a/in" up stories, revel in the
ield#" The program!s prime ob0ective, according to %#rray, was to weed o#t the cra;ies, as well as
the /sloths, irritants, bad actors, and freetal)ers$/
%#rray!s assessment system s#bse"#ently became a fi&t#re in the CI( and some of his assistants
went on to establish CI(li)e systems at large corporations, starting with (T M T$
It is important to remember that at the beginning, the O++ 8prec#rser to the CI(9 researchers from
+ec#rity and +cientific Intelligence shared 0ointly the literat#re and secret reports sei;ed from the
@ermans and the <apanese after orld ar II$ They had theori;ed that in order to b#ild an effective
defense against mind control and C'W, it !as necessary to understand the "oensive"
possi2ilities# 7#t as the years went on, the line between offense and defense if it ever e&isted soon
became so bl#rred as to be meaningless$
In 19AK when the .ational +ec#rity (ct created not only the CI(, b#t also the .ational +ec#rity
Co#ncil in s#m, the command st#ct#re of the Cold ar a warli)e post#re was developed against the
new perceived enemy, the +oviet Dnion$ The men in the CI( too) this 0ob serio#sly$ "We elt !e
!ere the irst line o deense in the antico,,unist crusade," recalled $arry Rosit1/e, an early
head o the %"ency3s &oviet Division# "There !as a clear and heady sense o ,ission a sense o
!hat a hu"e 0o2 this !as#"
( contingent of the CI( behaviorcontrol program, code named /(rticho)e,/ developed a progam
whereby g#inea pigs for mindcontrol e&periments were obtained from the flotsam and 0etsam of the
international spy trade= / $$$ individ#als of d#bio#s loyalty, s#spected agents or plants, s#b0ects
having )nown reason for deception, etc,/ as one agency doc#ments described them$ (rticho)e
officials loo)ed #pon these people as #ni"#e research /material/ from whom meaningf#l secrets
might be e&tracted while the e&periments went on$
(s one CI( psychologist who wor)ed in the mindcontrol program p#t it, /One did not p#t a high
premi#m on the civil rights of a person who was treasonable to his own co#ntry $$$/ Th#s the
(rticho)e teams were given mostly the dregs of the clandestine #nderworld to wor) on$
In one e&periment in the early 19E6!s, an alleged 4#ssian do#ble agent was bro#ght to a safe ho#se
and plied for information with a mi&t#re of dr#gs and hynopsis #nder the cover of a
/psychiatricmedical e&am$/ ( professional hypnotist had accompanied the team, giving his
commands to an interpreter thro#gh an elaborate intercom system, who, in t#rn, was able to p#t the
4#ssian into a hypnotic trance$
(fterward, the team reported to the CI(!s director that the 4#ssian had revealed e&tremely val#able
information and he had been made to forget his interrogation thro#gh hypnotically ind#ced amnesia$
The 4#ssian was also #sed in a s#bse"#ent e&periment where he !as "iven &econal, De5edrine
and (ari0uana in co,2ination in a 2eer delivered durin" the coc/tail hour# There were little, if
any, positive res#lts$
.evertheless, the CI( was still consistently on the c#tting edge of speciali;ed behaviorial research,
sponsoring the lions share of the most harrowing e&periments$ One CI( psychiatric cons#ltant
provided a small personal glimpse of how it felt to be a soldier in the mindcontrol campaign$ The
psychiatrist, who insisted on anonymity, estimated that he made between 15E and 1E6 trips overseas
on (gency operations between 19E5 thro#gh his retirement in 1966$ /To be a psychiatrist chasing
off to 3#rope instead of 0#st seeing the same patients year after year, that was e&traordinary,/ he
said$
Later, d#e to b#rea#cratic s"#abbling, the CI( transferred its behavior wor) to a 8CI(9 o#tfit with
Ph$'$!s called the Technical +ervices +taff 8T++9$ Dnder T++!s Chemical 'ivision, research was
cond#cted on the use o che,icals and "er,s a"ainst speciic people# L&D had 2een used
e5tensively 2et!een *F<* and *F<H 2y Dr# &idney 6ottlie2, a native of the 7ron& with a Ph$'$ in
chemistry from Cal TechL @ottlieb contin#ed to oversee most of T++!s behavorial programs #p to
and incl#ding 19K?$
(t the top of the Clandestine +ervices 8officially called the 'irectorate of Operations b#t pop#larly
)nown as the /dirty tric)s department/9, +id @ottlieb had a champion who appreciated his "#alities,
4ichard 2elms$ ,or two decades, @ottlieb moved into progressively higher positions in the wa)e of
2elms! climb to the highest position in the (gency$
Under the T&& leadership o 6ottlie2 and $el,s, research on the covert use o 2iolo"ical and
che,ical ,aterials pro"ressed under the code na,e o "(=Ultra#" The operational arm of
%CDltra was labeled %C'elta, the p#rpose of which was to /investigate whether and how it was
possible to modify an individ#al!s behavior by covert means$/ 2ashish had been aro#nd for
millennia, b#t L+' was ro#ghly a million times stronger by weight$ ( twos#iter s#itcase co#ld hold
eno#gh L+' to t#rn on every man, woman, and child in the Dnited +tates$
7#t the CI( was concentrating on individ#als$ T++ #nderstood that L+' distorted a person!s sense
of reality and they felt compelled to learn if it co#ld alter a person!s basic loyalties$ Co#ld the CI(
ma)e spies o#t of tripping 4#ssians or visa versa*
&uddenly there !as a hu"e ne! ,ar/et or "rants in acade,ia, as &id 6ottlie2 and his aides
2e"an to und L&D pro0ects at presti"ious institutions# (#thor <ohn %ar)s 8/The +earch for the
%anch#rian Candidate/9 identiied the %"ency3s L&D pathinders as: 'o2 $yde3s "roup at
'oston )sychopathic, $arold %2ra,son at (t# &inai $ospital and Colu,2ia University in
Ne! .or/, $arris Is2ell o the NI($sponsored %ddiction Research Center in Le5in"ton,
=entuc/y, Louis 8olyon West at the University o O/laho,a, and $arold $od"e3s "roup at
the Univerity o Rochester#
The %"ency dis"uised its involve,ent 2y passin" the ,oney throu"h t!o conduits: The 8osiah
(acy, 8r# 4oundation and the 6eschic/ter 4und or (edical Research, a Washin"ton D#C#
a,ily oundation, !hose head, Dr# Charles 6eschic/ter, provided the %"ency !ith a variety
o services or ,ore than a decade#
7eginning in 19E5, T++ had an agreement with the +pecial Operations 'ivision 8+O'9 of the
(rmy!s biological research center at ,ort 'etric), %aryland, !here2y &OD !ould produce "er,
!eapons or the CI%3s use !ith the pro"ra, called (=Nao,i# Under (=Nao,i, the &OD
,en developed a !hole arsenal o to5ic su2stances or CI% use#
rote %ar)s= /If (gency operators needed to )ill someone in a few seconds with say, a s#icide pill,
+O' provided s#perdeadly shellfish to&ins$/ (gency operators later s#pplied pills laced with this
lethal food poison to its %afia allies for incl#sion into ,idel Castro!s mil)sha)e$
In other instances, "I CI% oicials !anted an assassination to loo/ li/e a death ro, natural
causes, they could choose ro, a lon" list o deadly diseases that nor,ally occurred in
particular countries," !rote (ar/s# hen CI( operators merely wanted to be rid of someone
temporarily, +O' stoc)piled for them abo#t a do;en diseases and to&ims of varying strengths$ /(t
the relatively benign end of the +O' list stood N+taph enteroto&in,! a mild form of food poisoning
mild compared to bot#lin#m,/ noted %ar)s$
3ven more vir#lent in the +O' arsenal was /7ene1uelan eBuine encephalo,yelitis" virus which
#s#ally immobili;ed a person for 5 to E days and )ept him in a wea)ened state for several more
wee)s$ If the (gency wanted to incapacitate someone for a period of months, +O' provided t!o
dierent /inds o "2rucellosis#" This incapacitating agent was allegedly placed on the
monogrammed hand)erchief of an Ira"i colonel in 1666 who was said to be promoting +ovietbloc
political interests, b#t the colonel was shot by a firing s"#ad before the hand)erchief arrived$/
&OD !as orever developin" ,ore virulent strains," wrote %ar)s$ Perhaps the most important
"#estion was whether a germ co#ld be covertly delivered to infect the right person$ One 2ranch o
&OD speciali1ed in 2uildin" "delivery syste,s," the most notorio#s of which was a dart g#n
fashioned o#t of a $AE pistol which e&CI( 'irector illiam Colby once displayed at a 19KE +enate
hearing$
The (gency had long been after +O' to develop a "nondiscerni2le ,icro2ioinoculator" !hich
could deliver deadly shots that, accordin" to a CI% docu,ent, could not 2e "easily detected
upon a detailed autopsy#" One high 'etric) official noted that the best way to infect people was
thro#gh the respiratory system$ +O' rigged #p aerosol sprays that co#ld be fired by remote control,
incl#ding a fl#orescent starter that was activated by t#rning on the light$
% or,er ne!spaper 0ournalist turned narcotics a"ent, 6eor"e White, !as recruited 2y
(=Ultra chie &id 6ottlie2 to test dru"s on unsuspectin" su20ects at a &an 4rancisco "sae
house" on Tele"raph $ill# The apartment was b#gged with fo#r ''A microphones disg#ised as
electrical wall o#tlets hoo)ed #p to two ,?61 tape recorders which agents monitored in an ad0acent
/listening post$/
The &an 4rancisco sae house speciali1ed in prostitutes !ho 2rou"ht un!ittin" victi,s 2ac/
or study# In addition to L&D, T&& oicials "ave White even ,ore e5otic e5peri,ental dru"s
to test# One T&& source noted, "I !e !ere scared enou"h o a dru" not to try it out on
ourselves, !e sent it to &an 4rancisco#"
(ccording to a 196? report by CI( Inspector @eneral <ohn 3arman, in a n#mber of instances, the
test s#b0ect became ill for ho#rs or days and, in one case, hospitali;ation was needed$ rote %ar)s,
/The Inspector @eneral was only somewhat reass#red by the fact that @eorge hite maintained
close wor)ing relations with local police a#thorities which co#ld be #tili;ed to protect the activity in
critical sit#ations$/
%t another saehouse located in (arin County, T++ scientists tested s#ch %CDltra specialties
and delivery systems as glass amp#les that co#ld be stepped on to release itching or snee;ing
powders, a fine hypodermic needle to in0ect dr#gs thro#gh the cor) in a wine bottle, and a
dr#gcoated swi;;le stic)$
(t one point, an attempt was made to spray L+' from an aerosol spray can at a ho#se party, b#t the
heat of the s#mmer ca#sed all the windows and doors to be open$ />ears later,/ wrote <ohn %ar)s,
/@eorge hite wrote an epitaph Iin a personal letter to +id @ottliebJ for his role with the CI(= NI
was a very minor missionary, act#ally a heretic, b#t I toiled wholeheartedly in the vineyards
beca#se it was f#n, f#n, f#n$ here else co#ld a redblooded (merican boy lie, )ill, cheat, steal,
rape, and pillage with the sanction and blessing of the (ll2ighest*!/
.ot every scientist cooperated with the CI($ hile cond#cting e&perimental st#dies on mon)eys at
the .ational Instit#te of 2ealth, 'r$ <ohn Lilly discovered a method of inserting electrodes into the
brain to stim#late precise centers of pleas#re, pain, fear, an&iety and anger$ (s Lilly refined his
brain /maps,/ officials of the CI( and other agencies descended #pon him with re"#ests for
briefings$
Lilly insisted that all briefings remain #nclassified, completely open to o#tsiders$ Other scientists
ordinarily had their wor) officially classified, which meant that access to the information re"#ired a
sec#rity clearance$ 7#t Lilly!s imagination had con0#red #p pict#res of CI( agents on deadly
missions with remotecontrolled electrodes strategically implanted in their brains, and so he
withdrew from that field of research$ 7y 19EB he had finally concl#ded that it wo#ld be impossible
for him to contin#e wor)ing at the National Institute o $ealth witho#t compromising his
principles, so he resigned$
%CDltra officials were clearly interested in usin" "rants to 2uild contracts and associations !ith
presti"ious acade,ics$ The CI(f#nded +ociety for the Investigation of 2#man 3cology, later
)nown as the /2#man 3cology ,#nd,/ 823,9 s#pported s#ch p#blications as the /4esearch in
%ental 2ealth .ewsletter/ p#blished 0ointly at %c@ill Dniversity by the sociology and psychiatric
departments$
+imilarly, 23, gave grants of P56,666 to the well)nown Dniversity of London psychologist, 2$<$
3ysenc), for his wor) on motivation$ %ar)s noted that the %CDltra doc#ments ac)nowledged that
this research had /no immediate relevance for (gency needs, b#t it wo#ld lend prestige to the
2#man 3cology ,#nd$/
( whole category of 23, f#nding, called "cover "rants," served no other purpose than to 2uild
the or"ani1ation3s alse ront# % T&& source e5plained that "rants li/e these "2ou"ht
le"iti,acy" or the or"ani1ation# .evertheless, one small grant to a psychologist from the
Dniversity of Pennsylvania provided val#able information on /confidence men$/ The CI( was
intrig#ed with the ability of con men to manip#late h#man behavior$ (s one CI( official p#t it, the
psychologist #nwittingly gave them /a better #nderstanding of the techni"#es people #se to
establish phony relationships/ a s#b0ect of interest to the CI($
%ar)s wrote that at one point, the CI( too) the /+vengali/ legend to heart$ In 19EA, %orse (llen,
the CI(!s first behavioral research c;ar, sim#lated the #ltimate e&periment in hypnosis= the creation
of a /%anch#rian Candidate,/ or programmed assassin$ (llen!s /victim/ was a secretary whom he
p#t into a deep trance and told to )eep sleeping #ntil he ordered otherwise$
2e then hypnoti;ed a second secretary and told her that if she co#ld not wa)e #p her friend, /her
rage wo#ld be so great that she wo#ld not hesitate to )ill$/ (n #nloaded pistol was placed nearby$
3ven tho#gh the second secretary had e&pressed a fear of firearms of any )ind, she pic)ed #p the
g#n and /shot/ her sleeping friend$ (fter (llen bro#ght the /)iller/ o#t of her trance, she had no
recollection of the event, denying she wo#ld ever shoot anyone$
+ome of the CI(!s e&periments wandered so far across ethical borders of e&perimental psychiatry
that (gency officials #ltimately cond#cted m#ch of the wor) o#tside the Dnited +tates$ The CI(!s
2#man 3cology ,#nd provided financing to foreign researchers and (merican professors to collect
information abroad$ The %CDltra men reali;ed that ninetypercent of their e&periments wo#ld fail to
be of any #se to the (gency, b#t the /behaviorists/ contin#ed to search for the el#sive answer to
h#man control$
Dnbo#nd by the r#les of academia, the CI( too) stabs at crac)ing the h#man genetic code with
comp#ters and finding o#t whether animals co#ld be controlled thro#gh electrodes placed in their
brains$
ithin the (gency itself, the one significant "#estion remained to be answered= ill a techni"#e
wor)* CI( officials ;ealo#sly trac)ed every lead, sparing no e&pense to chec) each angle many
times over, yet no foolproof way was fo#nd to brainwash another person$ +pecific methods wor)ed
/fantastically/ on certain people, b#t not on others$ It wasn!t predictable eno#gh, noted one official$/
In the aftermath of the 7ay of Pigs, President Cennedy reportedly vowed to splinter the CI( into a
tho#sand pieces,/ wrote <ohn %ar)s$ In the end, he settled for firing (llen '#lles and his top
dep#ties$ Dntil that point, the T++ 8Technical +ervices +taff9 had been the (gency!s largest
scientific component$ Dnder the new head of CI(, <ohn %cCone, T++ was stripped of its main
research f#nctions incl#ding the behavioral one and +eymo#r 4#ssell, a to#gh covert operator, was
bro#ght in as the new chief$ 7#t the highest dep#tyship at T++ went to +id @ottlieb, who became
n#mbertwo man #nder 4#ssell$
In his new 0ob, 6ottlie2 /ept control o (=Ultra# $is e,phasis s!itched 2ac/ to che,ical and
2iolo"ical su2stances /not beca#se he tho#ght these co#ld be #sed to t#rn men into robots,/ wrote
%ar)s, /b#t beca#se he val#ed them for their Npredictable! ability to disorient, discredit, in0#re, or
)ill people$/ ( P1E6,666 a year contract was signed !ith a 'alti,ore 2iolo"ical la2oratory !hich
provided T&& a private place or "lar"escale production o ,icroor"anis,s" or 2iolo"ical
!eapons !ithout the %r,y3s "er, !arriors /no!in" a2out it#
'r$ <ames 2amilton, the +an ,rancisco psychiatrist who wor)ed with @eorge hite in the original
O++ mari0#ana days, was bro#ght bac) to %CDltra by @ottlieb to conduct "clinical testin" o
2ehavioral control ,aterials" on prisoners at the Caliornia (edical 4acility at 7acaville#
2amilton wor)ed thro#gh a nonprofit research instit#te connected to the facility to cond#ct his
research$ (ar/s esti,ated that he e5peri,ented on 2et!een ;AA to *,AAA in,ates 2et!een
*FHI and *FHG$
In <#ly 19KK, after receiving notification that the CI( had located K bo&es of %CDltra financial
records, a#thor <ohn %ar)s held a press conference in which he critici;ed then CI% Director
%d,iral &tansield Turner +later a Wac/enhut 'oard ,e,2er- for several distortions in
describing the %CDltra program$ Turner had descri2ed (=Ultra as only a pro"ra, o dru"
e5peri,entation and not one aimed at behavior control to President Carter and the +enate +elect
Committee on Intelligence$
%ar)s responded by releasing a score of CI( doc#ments to reporters that indicated the flavor of the
CI( behavioral efforts$ The docu,ents set o a ,edia 2and!a"on that had the story reported
on all three net!or/ television ne!s sho!s as !ell as others# The +enate +elect Committee on
Intelligence and +enator 3dward Cennedy!s +#bcommittee on 2ealth and +cientific 4esearch soon
anno#nced they wo#ld hold p#blic hearings on the s#b0ect$ The C7 program at ,t$ 'etric) was
s#bse"#ently sh#t down$
In 19K9, %ar)s concl#ded that he co#ld not be positive that the CI( never fo#nd a techni"#e to
control people$ CI( officials actively e&perimented with behaviorcontrol methods for another
decade (,T34 +id @ottlieb and company lost the research action$ The Office of 4esearch and
'evelopment 8O4'9 pic)ed #p the ball by creating its own latterday version of the +ociety for the
Investigation of 2#man 3cology$
Located o#tside 7oston, it was called the +cientific 3ngineering Instit#te and had originally been
#sed by the CI( as a proprietary company to cond#ct radar research$ In the early 1966!s, O4'
officials b#ilt a new wing to the Instit#te!s modernistic b#ilding for /life sciences/ or h#man
behavior research$
(ccording to %ar)s, one scientist from the instit#te recalled a colleag#e 0o)ing, /If yo# co#ld find
the nat#ral radio fre"#ency of a person!s sphincter, yo# co#ld ma)e him r#n o#t of the room real
fast$/
/<#st as the %CDltra program had been years ahead of the scientific comm#nity, O4' activities
were similarly advanced,/ wrote %ar)s$ One researcher noted that (=Ultra loo/ed at the
,anipulation o "enes and "ene splinterin" as early as *FH<, eleven years 2eore the rest o the
!orld even thou"ht a2out it# %dded the scientist, "Every2ody !as araid o 2uildin" the
supersoldier !ho !ould ta/e orders !ithout Buestionin", li/e the /a,i/a1e pilot# Creatin" a
su2servient society !as not out o si"ht#"
GGGGGG
The above research was cond#cted thirty years agoO hat had been developed along those same
lines by 199A* 3ven the most rampant imagination co#ld not conceive of what might be #nderway
in CI( laboratories today$
ith today!s c#tting and splicing techni"#es, scientists can attach any genes they choose to certain
carrier genes$ These lin)ed genes, called /recombinant '.(,/ are then conveyed inside a host cell,
which virt#ally adopts the new gene as one of its own$ The o20ect o ,ost current e5peri,ents is
to transplant "enes ro, the host to 2acteria# These tractable, microscopic cells proliferate faster
than rabbits$ On a simple cheap diet a single bacteri#m ma)es a few billion copies of itself
overnight$ Its '.(, incl#ding that of the transplanted gene, is reprod#ced at the same rate$
7iochemists at +tanford Dniversity have fo#nd a techni"#e for combining '.( from /two different
so#rces/ and p#tting it into a common bacteri#m$ The bacteri#m they chose was /3$coli bacteria,/
commonly fo#nd in the intestine of every living person$ %odified 3$coli, containing certain cancer
genes, co#ld become a biological bomb$ The bacteri#m carrying its little pac)age of cancer genes,
co#ld then be passed as easily as the common cold from one h#man to another$
The D$+$ is not the only co#ntry to have this technology$ ( classified report prepared for the
.ational +ec#rity Co#ncil 8D$+$9 and obtained by the ashington Times claimed /the +oviet Dnion
was #sing genetic engineering to create vir#lent new biological weapons that co#ld be deployed as
early as 19B9 1 if in fact some had not already been deployed$/ 4obert 2$ C#pperman, a chemical
warfare e&pert at @eorgetown Dniversity!s Center for +trategic and International +t#dies, told the
Times that /it!s li)e ma)ing designer dr#gs$/
( report was prepared by the Central Intelligence (gency and the (rms Control and 'isarmament
(gency which o#tlined e&tensive violations by the +oviets of two anti1biological warfare treaties$
The report noted /the +oviets were #sing recent advances in biotechnology, s#ch as genetic
engineering, to develop a new class of C7 Ichemical, biological warfareJ agents that can be
rapidly prod#ced for deployment$/
4ecent scientific findings on the @#lf ar +yndrome 8@+9 indicate genetic material common to
@#lf ar1era veterans co#ld provide a cl#e as to why so many became sic) after serving in the 1991
war$ In a st#dy presented to @#lf ar veterans at a conference in Tampa, ,lorida, microbiologist 'r$
2oward Drnovit; said the genetic mar)er co#ld point to the e&istence of a /vir#s$/ The vir#s, in
t#rn, co#ld ma)e veterans e&posed to chemical agents or other to&ins more s#sceptable to illness, he
added$
7eginning on -eterans 'ay, .ovember 11, 1996 and contin#ing thro#gh .ovember 1Kth, C43%
T$-$ o#t of +po)ane, ashington 8E699 B?B1K?E69, an affiliate of .orthwest .ews in +eattle,
telecast a series on @#lf ar +yndrome 8@+9$ 4eporter Tom @rant interviewed n#mero#s doctors,
one of which was 'r$ @arth .icholson, a microbiologist, who maintained that @+ contains
/altered genetic str#ct#res/ similar to (I'+$ 2e s#ggested @+ is a genetically engineered
biological warfare organism, and it!s contagio#s$
'r$ Larry @oss, in alters, O)lahoma, not only confirmed .icholson!s findings, b#t said on p#blic
T$-$ that he and his wife /ca#ght/ @+ while treating @#lf ar veterans$ 'r$ illiam
7a#m;weiger, a ne#rologist:psychiatrist at the -$($ hospital in Los (ngeles fo#nd brain1stem
damage in @+ vets, and noted the vir#s t#rns the imm#ne system against itself$
@+ veterans were warned .OT to have #nprotected se& or have any more children$ The vets
themselves were interviewed along with their families$ Tragically, their wives and children were
now s#ffering from the same @+ symptoms$ Pict#res were shown of the children, providing
indisp#table proof of the infectio#sness of the disease$
'octors warned the p#blic that @+ co#ld soon enter the general pop#lace, and it co#ld be
terminal$ 2owever, on .ovember 1Kth, 'r$ .icholson noted that treatment was available thro#gh
antibiotics$
GGGGGG
+cientists have long s#spected the e&istence of a /lab1created/ vir#s which attac)s the imm#ne
system$ In <an#ary 19B6, the ,rench1born and trained biologists Professor <a)ob and 'r$ Lilli +egal,
p#blished a pamphlet entitled, /(I'+= D+(12ome %ade 3vilL .ot Imported from (frica$/ The two
scientists, a biophysicist and a biologist affiliated with the 2#mboldt Dniversity in 7erlin, pointed
o#t that e&amination of the genes ma)ing #p the 2I- retrovir#s revealed it /co#ld not have come
abo#t by a nat#ral way )nown to biologists$/ The called the vir#s a /chimera,/ originally created in
19KK at ,ort 'etric), %aryland$
The +egals were not the only researchers to s#ggest that /genetic engineering/ was involved with
(I'+$ <ohn +eale, %$'$, a London venereologist, also stated that the molec#lar str#ct#re of 2I-
s#ggested /manip#lation of vir#ses/ rather than a nat#ral m#tation from )nown retrovir#ses$ (nd
'r$ 4obert +trec)er, %$'$, a Los (ngeles internist, has made the same assertion$
These advocates of the artificial 2I- theory all note the str#ct#ral similarities of 2I- to visna vir#s,
a pathogen fo#nd in sheep with similarities to (I'+$ The scientists arg#e that the visna vir#s was
artificially combined with the 2TL-1I vir#s, another retrovir#s which ca#ses h#man lymphoma, a
cancer of the white blood cells$
Today designer vir#ses are limited only by the imagination of the scientist creating them$ Th#s, bio1
labs in both the D$+$ and abroad are in a race to find vaccines which b#ild the h#man imm#ne
system 1 or search o#t and destroy )iller T 1 Cells$
( new st#dy, recently released by 'r$ <effrey Leiden, director of a research team at the Dniversity of
Chicago, showed that genes can be in0ected directly into /m#scle tiss#e/ to ca#se prod#ction of
proteins needed to correct some blood disorders, s#ch as anemia$ @enes in the in0ection are ta)en
into the n#cleas of cells in the m#scle tiss#e and become, in effect, a pharmace#tical factory,
increasing red blood cell levels as high as 6AR$ In the past, gene therapy involved #sing /vir#ses/ to
transfer genes into the body, a techni"#e that was /poorly controlled,/ according to 'r$ Leiden$
(nd another finding by (rth#r -andenbar), of the -eterans (ffairs %edical Center in Portland,
Oregon noted the discovery of a new vaccine which enables the h#man imm#ne system to ch#rn o#t
more T 1 Cells, th#s preventing m#ltiple sclerosis patients from becoming sic)er$
The #ltimate irony of the 51st cent#ry co#ld be the development of vaccines, in response to the
threat of biological warfare, which boost the h#man imm#ne system to s#ch a degree that people
become completely disease resistant$ The "#estion is, with overpop#lation looming on the hori;on,
wo#ld the D$+$ government release s#ch a vaccine to the general pop#lace 11 if not, who wo#ld have
access to it* The Chosen Ones*
Interestin"ly, Ro2ert 'ooth Nichols3 ,anuscript, entitled "%ccepta2le Casualty," copyri"hted
at the Li2rary o Con"ress in (ay *FGI, outlined an identical scenario#
GGGGGG
ithin %ichael 4iconosci#to!s secret files in the %o0ave 'esert, I had fo#nd a bo& mar)ed /Ted
@#nderson,/ which I had dragged home along with the rest of the material$
This partic#lar bo& had contained records of most of @#nderson!s investigations, b#t one report
partic#larly ca#ght my attention$ It was titled, /,rom P+>OP to %indar= The Psychology of
-ictory/ by Colonel Pa#l 3$ -allely with %a0or %ichael ($ ("#ino$
The 15page (rmy report was #ndated b#t it o#tlined the #se of /Psychotronics,/ intelligence and
operational weapons systems employing the #se of mind control, commonly )nown as
Psychological Operations 8P+>OP9$
Wrote %Buino, "In *FHI and *FHG alone, a total o 9F,9IH ar,ed 7iet Con"JN7% +the
eBuivalent o F< ene,y inantry 2attalions- surrendered to %R7N or (%C7 orces under the
Chieu $oi a,nesty pro"ra, the ,a0or )&.O) eort o the 7ietna, War# (t the time %(C-
estimated that the elimination of that same n#mber of enemy troops in combat wo#ld have cost #s
6,666 dead$/
("#ino arg#ed that the D$+$ lost the war in -ietnam /not beca#se we were o#tfo#ght, b#t beca#se
we were o#tP+>OPed$ O#r national will to victory was attac)ed more effectively than we attac)ed
that of the .orth -ietnamese and -iet Cong, and preception of this fact enco#raged the enemy to
hang on #ntil the Dnited +tates finally bro)e and ran for home$/
The lesson, according to ("#ino, was not to ignore D$+$ P+>OP capability, b#t rather to change it
and strengthen it /so that it can do precisely that )ind of thing to o#r enemy in the ne&t war$/ To
begin, there wo#ld be a name change from Psychological Operations to /%indar$/ .oted ("#ino,
/e m#st reach the people 73,O43 they resolve to s#pport their armies, and we m#st reach those
armies 73,O43 o#r combat troops ever see them on battlefields$/
("#ino went on to compare his proposal with the definition of Psychological arfare first
introd#ced 2y 6eneral Willia, Donovan o the O&& in his orld ar IIera /7asic 3stimate of
Psychological arfare/ in which 'onovan disc#ssed the need to destroy the will of the enemy$ 7#t
an attendant 19AK letter stressed the need for a /synonym which co#ld be #sed in peacetime that
wo#ld not shoc) the sensibilities of a citi;en of democracy$/
("#ino indicated contempt for the D$+$ (rmy!s inability to accept P+>OP in its /most effective
config#ration,/ adding that /the rel#ctance with which the (rmy had accepted even an Nantiseptic!
P+>OP component/ was well doc#mented$
2aving read abo#t @eneral 'onovan!s /behavioral control/ program in the %CDltra boo), I didn!t
perceive it to be e&actly /antiseptic$/ ("#ino!s report, obvio#sly written after the -ietnam war,
su""ested that uture (indWars should 2e ou"ht throu"h "s/illul use o co,,unications
,edia#"
/%indar,/ noted ("#ino, /states a whole tr#th that, if it does not now e&ist, will be forced into
e&istence by the will of the Dnited +tates $$$ ( %indar message does not have to fit conditions of
abstract credibility as do P+>OP themesL its so#rce ma)es it credible$/
("#ino contin#ed, / $$$ The %indar operative m#st C.O that he spea)s the tr#th, and he m#st
be P34+O.(LL> CO%%ITT3' to it$ hat he says is only a part of %indarL the rest and the
test of its effectiveness lies in the conviction he pro0ects to his a#dience, in the rapport he
establishes with it$/
%s I read the docu,ent it !as diicult not to recall Oliver North3s diary in !hich he called his
associates, "The True 'elievers#" 8%ore on that in another chapter9$ ("#ino noted that the
recipient of the statement by the %indar operative wo#ld 0#dge s#ch messages not only by his
conscio#s #nderstanding of them, b#t also by the mental conditions #nder which he perceived them$
/,or the mind to believe its own decisions,/ wrote ("#ino, /it m#st feel that it made those decisions
witho#t coercion$ Coercive meas#res #sed by the %indar operative, conse"#ently, m#st not be
detectable by ordinary means $$$/
("#ino!s basis for his report came from vario#s p#blications which were listed at the bac) of the
doc#ment$ /%ore effective config#rations/ of %indar as noted by ("#ino may well have incl#ded
the following 8ta)en from the bac) of the doc#ment9=
/3L, 8e&tremely low fre"#ency9 waves 8#p to 166 2;9 $$$ are nat#rally occ#rring, b#t they can also
be prod#ced artificially $$$ 3L,waves are not normally noticed by the #naided senses, yet their
resonant effect #pon the h#man body has been connected to both physiological disorders and
emotional distortion$ Infraso#nd vibration 8#p to 56 2;9 can s#bliminally infl#ence brain activity to
align itself to delta, theta, alpha, or beta wave patterns, inclining an a#dience toward everything
from alertness to passivity$ Infraso#nd co#ld be #sed tactically, as 3L,waves end#re for great
distancesL and it co#ld be #sed in con0#nction with media broadcasts as well$/
+o, the h#man brain can be aligned to infraso#nd thro#gh media broadcasts$ as that technology
#sed on %an#el .oriega when he was forced to s#rrender in Panama #nder blaring radio
broadcasts* (nd hadn!t the 7ranch 'avidians had been s#b0ected to lo#d m#sic and chants for
e&tended periods of time*
(nother section of the ("#ino report noted that /ioni;ation of the air/ co#ld be #sed to control an
individ#al!s emotions$ /(n ab#ndance of negative condensation n#cleii 8air ions9 in ingested air
enhances alertness and e&hilaration, while an e&cess of positive ions enhances drowsiness and
depression$ Calc#lation of a target a#dience!s atmospheric environment will be correspondingly
#sef#l$/
(fter his retirement from the (rmy, Lie#tenant Colonel %ichael ("#ino, an e&@reen 7eret, was
later written #p in the +an ,rancisco Chronicle as the head of the Temple of +et, a satanic,
devilworshipping ch#rch$ The .ovember 19BK headlines read as follows= /(rmy +ays Constit#tion
Lets +atanist 2old Top+ecret <ob,/ by reporters <ohn hittinger and 7ill allace$ The story went
on to say that /the high priest of a +an ,anciscobased satanic ch#rch is able to )eep his topsecret
sec#rity clearance beca#se his activities are constit#tionally protected, (rmy officials said
yesterday$ /Lie#tenant Colonel %ichael ($ ("#ino, a highly decorated -ietnam veteran, is the
fo#nder and president of Temple of +et, a satanic ch#rch head"#artered in ("#ino!s 4#ssian 2ill
home $$$
/("#ino, a psychological warfare officer who has wor)ed in military intelligence, holds a top secret
sec#rity clearance that allows him to handle information whose release wo#ld gravely damage D$+$
sec#rity, according to 'efense 'epartment reg#lations$
/2e maintains the clearance even tho#gh he has performed .a;i occ#lt rites and has described
himself as the N(ntiChrist! in literat#re p#blished by the Temple of +et $$$/
Temple of +et literat#re described a coming apocalypse in which only followers of +atan wo#ld be
saved$ 4eaders were enco#raged to read s#ch wor)s as /%ein Campf,/ /2itler= The Occ#lt
%essiah,/ and /The Occ#lt 4oots of .a;ism$/
("#ino cond#cted occ#lt rit#als patterned on ceremonies performed by .a;i leader 2einrich
2immler in a @erman castle once #sed by the .a;i ++ for blac) magic ceremonies d#ring the Third
4eich$ .a;is considered the blac) arts and satanic worship part of an ancient @ermanic tradition$
("#ino, in his boo), /Crystal Tablet of +et,/ wrote that he performed the rit#als to recreate an order
of Cnighthood for followers of +atan$ 2e even enco#raged his followers to st#dy the beliefs of the
.a;i terrorist gro#p, the -ehm, the Th#le @esselschaft, and the (hnenerbe, two fanatic rightwing
(ryan gro#ps that e&isted before and d#ring 2itler!s reign$
hen the two reporters from the Chronicle in"#ired abo#t ("#ino!s sec#rity clearances, %a0or
4i&on declared that /to the best of his )nowledge, there was no part of the lit#rgy of his ch#rch that
ca#sed any 8sec#rity9 problem$/ ("#ino admitted to being involved in devil worship for 55 years$
Ted @#nderson!s bo& contained reams of literat#re written by ("#ino along with other doc#ments
pertaining to identical s#b0ect matter$ It was no secret that @#nderson lect#red on the s#b0ect of
+atanism, as I learned from a <#ly 199? Colonel 7o @rit; newsletter which advertised @#nderson as
a feat#red spea)er on one of @rit;!s national radio broadcasts$
7#t it was not the +atanic aspect of ("#ino!s writings that ca#sed me to scr#tini;e his earlier
writings for the (rmy$ +hortly after the aco incident in Te&as, a secret "classiied conerence"
!as held at the Los %la,os National La2oratories in Ne! (e5ico# Thro#gh a friend in %aine, I
was able to obtain an official copy of the spea)ing agenda for the .ovember 199? conference and,
oddly, the s#b0ect matter #nder disc#ssion correlated with not only the original ("#ino (rmy report,
b#t also with the %CDltra behavior research #nderway d#ring the 19E6!s and 1966!s$
The title of the conference was "NonLethal Deense" and 0#st a few of the spea)ers incl#ded s#ch
dignitaries as the 2onorable D$+$ (ttorney @eneral <anet 4enoL 'r$ 3dward Teller who had helped
develop the n#clear bombL 'r$ %ilt ,inger from Lawrence Livermore .ational LaboratoryL %r$
(ndy (ndrews, .onLethal Pro0ect Leader at Los (lamos .ational LaboratoryL LT@ illiam 2$
,orster from (rmy 4esearch, 'evelopment and (c"#isitionL 'r$ Clay 3asterly from the Oa) 4idge
.ational LaboratoryL 'r$ 2enry 7ris)er from D$+$ (rmy 4esearch LaboratoriesL %s$ (strid Lewis
from the D$+$ (rmy Chemical 4esearch M 'evelopment CommandL Lt$ @eneral 4ichard @$ Trefry,
former %ilitary (dvisor to President @eorge 7#shL and many more$
The most noteworthy /nonlethal/ technology presentations incl#ded the following= /2igh Power
%icrowave Technology/ /(pplication of 3&tremely Low ,re"#ency 3lectromagnetic ,ields to
.onLethal eapons/ /-oice +ynthesis/ /Incremental (gression= 4e"#irements for the ,#t#re/
"Che,icalJ'iolo"ical %ntiTerroris," "'iolo"ical Challen"es" /.onLethal 4esearch= ,ract#re
M 'ynamic 7ehavior, 'iotechnolo"y M +tr#ct#ral Ceramics, and many more$
Interestingly, the openin" address !as "iven 2y 6eneral E#C# (eyer +Ret#-, or,er Chie o
&ta o the U#&# %r,y the very sa,e 6eneral (eyer !ho had set up the Depart,ent o
Deense conerence in !hich (ichael Riconosciuto had 2een the principal spea/er ro, F a#,#
to ; p#,# to a "roup o seniorlevel national security research and develop,ent oicials#
The o20ective and scope o the *FF: Los %la,os conerence included e5plorin" a nonlethal
approach to apply orce a"ainst not only !arti,e ene,ies +the &oviet Union had already
allen- 2ut a"ainst "terrorists" and "international dru" traic/ers" as !ell# The introd#ction
noted that the p#rpose of the conference was to bring together /ind#stry, government, and academia
to e&plore the potential of nonlethal defense and identify re"#irements so that the defense
comm#nity can wor) together in leveraging the nonlethal concept$/
/Ind#stry Ilaw enforcementJ, partic#larly, will benefit from a more precise #nderstanding of
re"#irements and operational constraints regarding nonlethal defense technologies,/ noted the
conference!s sponsors, The (merican 'efense Preparedness (ssociation$
(dditionally, nonlethal defense was described as /an emerging technological option being
developed concept#ally with a sea of technical opport#nity$/
'ased upon the technical presentations listed in the 2rochure, it didn3t appear to ,e that such
technolo"y as acoustical, hi"hpo!er ,icro!ave, laser, EL4JR4 !eapons and "psychotronic"
syste,s !ere particulary NEW in the ield o ,ilitary or intelli"ence applications# Obvio#sly,
what was occ#rring at this conference was the presentation of these formidable weapons to law
enforcement for domestic 8D$+$9 applications$
In late .ovember 199?, a letter came to my attention which disc#ssed the abovementioned
conference$ The letter had been written to D$+$ (ttorney @eneral <anet 4eno by a former CI(
employee, <#lianne %cCinney, on letterhead stationary originating from the /(ssociation of
.ational +ec#rity (l#mni, 3lectronic +#rveillance Pro0ect, P$O$ 7o& 1?65E, +ilver +pring,
%aryland 56911?65E$/
Portions of the letter read as follows= / $$$ In 'ecember 1995, when N%icrowave 2arassment and
%indControl 3&perimentation! was p#blished, D$+$ @overnment representatives ro#tinely too) the
position that directedenergy technologies were nothing more than mere figments of physicists!
imaginations, still on the drawing boards$ +hortly following p#blication of this report, information
concerning these technologies began to appear in s#ch noteworthy organs as The all +treet
<o#rnal, 'efense .ews, (viation ee) M +pace Technology, Tactical Technology, 'efense
3lectronics and, most recently, The ashington Post$
/In a fl#rry of activity these past 16 months, directedenergybased s#rveilance and antipersonnel
systems have s#ddenly leaped off of physicists! drawing boards into the world of reality, th#s
obviating the criticism, it wo#ld appear, that the attached p#blication ILos (lamos conference
broch#reJ concerns none&istent technologies$
/Indeed, directedenergy technologies appear to have evolved at s#ch a rapid rate that they are now
being promoted as the N,inal +ol#tion! to crime preliminarily, at a classified conference sponsored
by the Los (lamos .ational Laboratory $$$/
%cCinney!s concern foc#sed primarily on f#t#re law enforcement application of /psychotronic/
tools, or directedenergy weapons technologies$ /hat, so far, has prevented this goverment and its
contractors from testing these technologies on D$+$ citi;ens #nder invol#ntary circ#mstances*,/ she
as)ed$
The letter went on to o#tline vario#s instances in which people had complained to her organi;ation
of alleged symptoms of directedenergy technologies in s#ch areas as the Dnited +tates, 3ngland,
Canada and (#stralia$
GGGGGG
(fter reading /The +earch for the %anch#rian Candidate,/ I co#ldn!t help wondering if 'anny
Casolaro had been s#b0ected to some form of hypnosis$
(ny s#ch farreaching scenarios were o#tside the bo#ndaries of normal h#man e&perience, indeed no
mainstream 0o#rnalist wo#ld p#rs#e s#ch a theory$ 7#t, then 4obert 7ooth .ichols, %ichael
4iconosci#to and the CI( were not within normal h#man e&perience$ %nd, !ho !ould have
2elieved, ten years a"o, that the CI% !ould 2e investi"ated 2y Con"ress in *FFH or dru"
traic/in" in Los %n"elesC
(t one point in time 'anny had signed an agreement with .ichols in which .ichols was to give
'anny a P5E,666 loan against his home in ,airfa&, -irginia$ .ichols had offered to ta)e 'anny
overseas to find the answers to his "#estions and 'anny had needed the money to ma)e the trip$
here had they planned to go* hat possible motive co#ld .ichols have had for enticing 'anny to
go overseas for several months*
'#ring one of my conversations with 7obby 4iconosci#to, she had mentioned a private installation
at (lice +prings, (#stralia which %ichael had visited with .ichols$ The to#r of the installation had
#pset 4iconosci#to to s#ch a degree that he had become ill and c#t the trip short$ .ichols later
confirmed the trip, and recalled that %ichael had indeed become an&io#s and ill, b#t wo#ld not
disc#ss the p#rpose of the trip$
hen I s#bse"#ently "#estioned %ichael abo#t the (#stralian installation, he first as)ed where I
had learned of it* hen I noted the information came from 7obby, he e&plained that the
#ndergro#nd facility had been b#ilt d#ring orld ar II to be #sed as a bomb shelter$ It was capable
of ho#sing tho#sands of people and was completely selfcontained$
I as)ed 4iconosci#to if he had been inside the facility* 2e said he had, it was owned by a private
corporationL inside was a city of sorts, containing sophisticated comm#nications e"#ipment,
laboratory e"#ipment and other items which he wo#ld not define$ 2e chose not to disc#ss it f#rther,
b#t conc#rred that what he saw made him reali;e that it was time to terminate his relationship with
4obert 7ooth .ichols$
7oth men had confirmed to me that the (#stralian trip mar)ed the end of their 56year association$ I
later contacted a 0o#rnalist in (lice +prings to gain more )nowledge of the mysterio#s
/installation$/ I was able to confirm that the installation e&isted, that it was leased by a private
corporation, and that it was heavily g#arded, b#t noone seemed to )now what it was being #sed for$
GGGGGG
On .ovember 55, 1995, I received a call from %ichael 4iconosci#to$ It was the first time I had
spo)en with him in nine months$ The first thing he as)ed me was, /'id 7ob .ichols threaten yo#*/
I e&plained to him that I had nothing to fear from .ichols as long as I didn!t reveal the contents of
the meeting$%ichael pressed f#rther$
/'id he attempt to destroy my credibility, or did the meeting pertain to 2I+ activities*/
/ell, essentially, I as)ed him "#estions specifically abo#t what he was doing with his corporation
in <apan and overseas $$$/
%i)e )new I was referring to the genetic engineering pro0ect$ %ichael inter0ected, /That is so
heavy$ I!ve got a f#ll paperwor) trail on that$/
I answered, /I have the paperwor) trail on it$/
%ichael= /2e didn!t li)e that, did he*/
C%= /.o, b#t after he )new I had information on it, he came right o#t and tal)ed abo#t it$/
%ichael= /'id he tell yo# what it was for*/
C%= /I thin) he did$/
%ichael= /Isn!t that a N'r$ +trangelove tale!*/
C%= />es, I need to as) yo# some things $$$/
%ichael c#t in$ /Let!s not tal) abo#t that over this phone$/
Once again, %ichael became evasive when confronted with the biological technology .ichols was
involved in$ This seemed to be one of the few s#b0ects he ref#sed to disc#ss over the phone$
2is ne&t "#estion ca#sed me some alarm$ /here did yo# send the metal cannister yo# fo#nd in my
files in the desert*/
I replied, /I sent it o#t to have it analy;ed$ I haven!t received the res#lts yet $$$/
%ichael= /Oh, <es#s$ here $$$ If they don!t )now how to handle it $$$/
I stammered, /$$$ I haven!t heard from them yet $$$/
%ichael too) a deep breath$ /Oh, @od$/ Then silence$
I was alarmed$ /hat is it* Tell me the tr#th$/
%ichael seemed sha)en$ /It!s a military concept where yo# can genetically engineer these biological
agents $$$ yo# see, a specific penetration gro#p can be imm#ni;ed, and everbody else dies$ .ow,
whoever yo# sent that to, if they!re not set #p $$$ if they!re not a classA facility, they better call
someone who can handle it and get rid of it $$$/ %i)e stopped abr#ptly$ /2as anyone opened or
to#ched the cannister*/
I responded that it had not been opened$ 2e drew another deep breath and seemed to rela&
somewhat$ /(lright, it!s not yo#r problem anymore$ (s long as it!s off yo#r property$/
GGGGGG
The remainder of this man#script is not relevent to CI( 'r#g Traffic)ing or the foc#s of the
Investigative Committee$ I therefore have sent only the enclosed pages$ If yo# want more, let me
)now$ C$%$
Contact= +tormbirdBUaol$com$ (ll correspondence will be forwarded to the (#thor, who
specifically wishes to ma)e contact with serio#s investigative 0o#rnalists who are interested in
wor)ing with her to brea) the story$