ON THE QT
Everything You Always Suspected:
Carola Von Hoffmannstahl-Solomonoff
Plus a Few Coupons
Publisher and Editor
to On The QT #14. Life could be a dream. But not right now.
Time to wake up and smell the coffee. Light on sugar but
The new focus on laundered money is salutary. Prior to
9/11 the Bush administration was taking a ho-hum approach.
As recently as July, treasury secretary Paul O'Neill pushed
co-operation rather than sanctions in dealing with money
laundering abroad. Back in 1993, Congress directed the Clinton
administration to regulate domestic "money service" businesses--
ones involved in check cashing, money transfers and currency
exchanges. Included were American outlets for "hawala"; a
personal connection based money transfer system used widely
in South Asia and the Middle East. Which lends itself
to money laundering and is believed to be a money route for
al-Qaeda. But Clinton delayed implementing the regulations for
eight years-- until he was out of office. Bush planned to delay
the regulations until the end of 2002, saying unregulated
businesses needed time to get
The connection between laundered money, drugs, weapons and
terrorism hasn't been a great big secret. But the connection
became impossible to ignore when "black money" was linked to
the 9/11 destruction of some 5000 innocents. Right before
our eyes. Then there's the slow motion destruction caused
by drugs. Terrorist operations of all stripes need big money
to function: the drug trade has traditionally provided a lot
of that money. Terrorists who do the actual deeds are the
first person principles. But the black money trail is a
group endeavor: every player bear some responsibility for
what laundered money buys.
Store coupons are the third largest currency in the USA; right
behind regular transactions and drug profits. Coupons
generate roughly 8 billion dollars a year. On February 24th,
1998, a Senate Judiciary Subcommittee Hearing on Technology and
Terrorism, (Foreign Terrorists in America: Five Years After The
World Trade Center) heard testimony from a corporate private
investigator about coupon fraud networks. Said networks purchase
bulk inserts from recyclers, newspaper distributors and newspaper
stands. Coupons are clipped by low paid employees and crumpled
to look like they've hung out in someone's purse. The coupons
are sorted, bundled and sent back to the coupon clearing house.
Who reimburse the senders. In the early 90's, coupon fraud rings
connected to networks of small Middle Eastern grocery stores and
money wire rooms and with financial ties to various terrorist
groups were identified operating in cities in Florida, Wisconsin,
Pennsylvania, New York and New Jersey. According to testimony,
arrests were made but the rings weren't closed. Nor were their
connections examined closely. It didn't seem important.
The attitude was "It isn't drugs and guns, it's just coupons
and those rich companies can afford to loose a little". But
profits from coupon fraud were pumped back into-- guess what?
DRUGS & GUNS!
Grove Liquor and Deli near city hall on Grove Street in
Jersey City, New Jersey was a store typical to under served
neighborhoods. Stores where booze comes mainly in pints and
where loose cigarettes, lottery tickets, rolling papers and
dubiously dated milk are sales staples. But Grove Liquor had
something extra; owner Mohammed Rajaa Malik. Aka "Mike". Who
was busted this Summer in Florida. After desperately seeking
military grade weapons for terrorists (possibly al-Queda,
via Pakistani agents) and laundering money with ex Deutsche
Bank investment banker, Kevin Ingram. Plus discussing possible
heroin payments for Stinger Missiles and suitcase size nuclear
triggers. Though Mike Malek was such a busy bee, he found time
for his job on the Jersey City zoning board and for being
"politically active". Which included donating 1000 dollars
to the gubernatorial campaign of Republican candidate Bret
Schundler; ex-mayor of Jersey City, now known as
Schundler recently stated that as governor he'd work with
"my friend, George Bush" to protect New Jersey from terrorism.
Which may mean keeping up with information about regional
terrorist activity. Such as the above described 1998 Senate
testimony about terrorist linked coupon fraud rings operating
out of grocery stores. Which identified Jersey City as one of
the cities where such stores existed.
HEAR NO! SPEAK NO!
In September 1999, the federal Centers for Disease Control and
Prevention (CDC) gave a million dollar grant to New Jersey, the
purpose being to improve response to bioterrorism. The press
release stated the cities on which the funds were to be focused
were Newark and Jersey City, since "federal legislation
designated Newark and Jersey City ..vulnerable to bioterrorist
attack". Why was Jersey City designated vulnerable? Did then
Mayor Bret Schundler ever ask?
ASLEEP AT THE WHEEL
Bret Schundler was not in bed with terrorists.(The mental
image !) Nor did Jersey City's terror links spring into
existence when Bret became mayor in 92. Long time resident
Mike Malek was a "politically active" constituent of several
former Democratic mayors. Including convicted felon Jerry McCann,
a graduate of the Boca Raton School of bank fraud. Other cities
in New Jersey (Paterson, Newark) have terrorist "issues" as do
cities in other states. But Bret Schundler got the wake up call.
When the WTC was bombed in 93, by Islamic fundamentalist
terrorists based in the Journal Square area of Jersey City,
shouldn't it have rung an alarm in Bret's brain? Post WTCI, why
did Jersey City remain so porous that 8 years later, a tabloid
could dub it "Terror City"? Ex Wall Street broker and analyst
Bret touts his financial savvy, yet terror connected money
laundering operations flourished under his nose. Bret has been
generally seen as a great white hope for neocons. Maybe,
one day, President ? Perhaps while governing Jersey City, Bret
Schundler's eyes were on the horizon, fixed on an ideological
Which looked like this: we're transforming into one world of
interdependent consumers and traders. Open the borders. Look
closely at no one-- or at their financial transactions.
Everyone, when set free to buy and sell, will ultimately
embrace democratic ideals. And while colorful, multi cultural
tourist drawing festivals are good, the pursuit of wealth
will dissolve all dangerous and inexplicable allegiances to
nationalist and/or fundamentalist aims. At heart we all worship
the same god, albeit under many different names. One of peace.
A sort of self reflecting, Great Kooka Mooka who cares deeply
about our financial well being and supports school vouchers.
WHAT'S UP DOC?
With or without vouchers, it's quite a fantasy. One that makes
grasping the reality of a Mike Malek mole or a soulless Kevin
Ingram difficult. Let alone a billionaire contractor terrorist
driven by a different kind of dream. Adept at surfing the
international rational market; investing in death and turning
green money black.
MEANWHILE BACK AT THE RANCHO:
Albany New York's Mayor Jerry Jennings may qualify for a new
title. After Jennings stripped Albany bus stop kiosks of posters
featuring Claudia Schiffer in her underwear, European fashion
sites referred to him as "Burgermeister Jennings". But a recent
letter to the editor in a local paper compared the city of
Albany's political machine to that of the Mexican PRI party.
So, would "El Presidente Por Vida" be more appropriate? What
do you think? A special On The Qt readers poll. Feel free to
suggest your own honorifics. Results posted in the next issue,
which will also include
THE INTERNET WAR
Consider the Internet's remarkable performance since 9/11. The
text from a presentation on the subject, given at Burlington
College in Vermont by On The QT, will appear in issue 15. Now
for some timely
Transparency International, http://www.transparency.org: The
latest, the greatest. TI rules. Their international corruption
updates link you to newspapers in all those places now in the
headlines. They've just published a first annual report on Global
Corruption. Must reading. Even if you don't buy the globalist
approach, their information and dedication is impressive.
Other resources for money laundering info:
Money Laundering Alert, http://www.moneylaundering.com/
Money Laundering, http://www1.oecd.org/fatf/MLaundering_en.htm
Countermoneylaundering.com - The Money Laundering Compliance
Website index, http://www.countermoneylaundering.com/
Billy's Money Laundering Home Page,
Proposed methodology for estimating global money laundering,
Money Laundering: A Banker's Guide to Avoiding Problems,
Financial Crimes and Money Laundering,
vortexcentrum.com - World Money Laundering Report,
Financial Scandals, http://www.ex.ac.uk/~RDavies/arian/scandals/
ODCCP - Global Programme Against Money Laundering
"The secretive web that once shrouded corruption is fast
Peter Eigen, Transparency International Chairman
ON THE QT is online at
To comment or subscribe contact
to unsubscribe send mail with
"unsubscribe" as "subject"
Note: firstname.lastname@example.org should no longer be used