("Quid coniuratio est?")
C.I.A. and the Dope Business
My thanks to a CN reader for sending a videotape of several
episodes of a public access show out of Chicago called
"Broadside". This particular episode (below) features Cliff
Kelley, a former Chicago alderman, Jim Reis, producer of a public
access show called "Wall Street Lies", Mark Sato, author and
researcher, and Sherman Skolnick, researcher and founder of the
Citizens' Committee to Clean-up the Courts.
[Disclaimer: Opinions expressed are those of the persons
mentioned above and do not necessarily reflect my own views.]
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SHERMAN SKOLNICK [continues]:
So what happened was, they had these various devices. Now, for
example, they had a whole group of agencies, federal and state
agencies, that give subsidies to the inner city and others -- the
Small Business Administration is one; the Illinois Department of
Commerce and Community Affairs is another. The U.S. Department of
Labor, with their CETA [Comprehensive Employment Training Act]
grants, and so on. And so... Yeah, let's see the picture again of
Tezak, up on the screen. Tezak was the, was the thing that was
makin' the thing actually run. But now, the different agencies
that were involved -- the Will County Local Development Council,
and others, they had all this federal money, subsidies, the
records of which would show the "washing" of the "China White"
money, were kept in one building, called the "Moose Building".
Can you guess who owned it? The guy that owned Moose Island, John
Bays, the partner of Robert Tezak.
Where is Moose Island?
- Chanahan(?). It's right outside of Joliet.
- He knows how to pronounce it better than I do.
O.K. Now what happened was, now one of those that were involved
in the China thing was Edward F. Masters, who later became the
States Attorney of Will County -- he should have looked into
this, right? And then he became the chief judge of the 12th
district, Will County.
- And that's an interesting story right there, because... Judge
Masters oversaw a case involving a bond issue, a $50 million bond
issue which was passed secretly by the Will County board. And
part of the reason why they wanted $50 million in bonds was to
expand the forest preserve district around Moose Island.
In other words, to make it a little more secure.
- How do you pass a bond issue for $50 million secretly?
- They held the board meeting in secret. Of course, the voters were
up in arms over it. But they got it passed.
- They got suggestions from the former Governor Clinton [laughs].
You know, how to do this thing! But...
- And that was under the guidance of Mr. Tezak's friend, John
Anarino, who was the Will County board chairman.
- O.K. But here's the point: the "China White" money was disguised
as subsidies from these federal agencies -- Small Business
Administration, HUD, the Housing and Urban Development, the U.S.
Labor Department (of which the Scariano law firm has been the
private counsel for the Labor Department for many many years),
the Illinois Department of Commerce and Community Affairs. And
what they did is, to make some of the money "disappear", they
dispensed it, allegedly, to three training institutes. I mean,
they had all kinds of gimmicks to make the money "disappear"!
And, part of the money, starting in '86, went to finance (that's
what the Treasury [Department] unit believes) Household
International. And their bank's Household Bank -- which actually
is a savings and loan, by the way. And where is Household
International headquartered? Where Roxanne Bay's got her motel,
over there in Prospect Heights! I mean, where else?! Right near
the Pewaukee Airport.
O.K. But here...
It's called a "savings bank". But it falls in-between the
- All right.
- No, it's a good point! Because it falls in-between the cracks,
between savings and loan, and bank. And you don't really know
where it stands. So these guys are issuing all these credit
cards; this is one of the big credit card issuers. And this is
another way that money's being laundered.
Now I want to go back to that bond issue that you spoke about
awhile back, that Will County bond issue. Something interesting
will happen there, is that it will default! Because they've taken
the money, and there's no purpose behind it. They're using it for
some secret purpose. People invest in these bonds! O.K.? But in
a lot of the [unclear], they own a piece of those bonds whether
they know it or not! So be forewarned, be forewarned.
- But here's the problem: from '79 on, Tezak's lawyer was Dan K.
Webb. And he was his lawyer even while Webb was the U.S.
Attorney, O.K.? So I think he should have gone after Tezak.
Instead, he was his lawyer, which is, I think it's illegal.
And then, Webb was replaced by another member of the gang, Anton
R. Valukas. So by 1986 and '87, things began to escalate. What
happened was, the Treasury [Department] unit insisted that chief
prosecutor, U.S. Attorney Anton R. Valukas, get a grand jury
looking into this thing. But, since Valukas and Webb are close
with Tezak and Bush and all that, they issued a subpoena for the
records, which were kept in the Moose Building there, purportedly
by a group that has the name "Private Industry Council", but they
kept records that were federal subsidy records -- SBA, HUD, and
so on. And what happened is, Valukas "tipped off" Tezak. And the
subpoena was returnable on a Monday, December 7th, 1987. On the
Friday night preceding it, Tezak burned the building down. Can we
have Tezak's picture here again?
All right. Now, so the point is, what happened is, there was an
obstruction of the federal grand jury, O.K.? Now, the next group
of pictures we would like...
REIS: ...in other words, that was in December of '87.
- Yeah. This is a diversion, but just at the time that Chicago had
a big commotion, an all-night session at City Council to pick a
new acting mayor, following the strange death of Harold
This, the building, the Moose Building burned down December 4th,
All right. Now...
- That's where all the records were.
- Yeah! That's where all the records were. And...
- You are saying that it is your belief that the U.S. Attorney, who
was Anton Valukas, was in a conspiracy with Mr. Tezak [unclear]
- O.K. Now. Can we see those pictures now, the building, the way it
was before, before it burned down, and then the way it looked
after the fire, according to the picture in the Chicago
O.K. Here's... You look carefully. You see the moose on the
building? Moose Island - Moose Building. There it is. Can you see
where it says "Private Industry Council"?
By the way, get the picture. Now here is the story the
Tribune, which had the picture below it of the building, as it
looked when it burned down. Here it says the IRS wanted the
records; actually it was the secret Treasury [Department] unit
that had wanted the records to be brought... Now here's the
building. Here's... There's the building as it burns down.
- That's the after picture.
- That's a barbecued moose.
- Yeah! Barbecued moose.
- It's Bullwinkle.
- Look at the picture, see. Now, what happened is, Anton R.
Valukas, the U.S. Attorney, chief federal prosecutor, did not
investigate what this was about because he already knew what it
was about! He told Tezak, "Hey! We're comin' with a subpoena
Monday. Burn the building down Friday night. Our subpoena will be
'inoperative'." (Or "inappropriate" or whatever the word is for
such a thing.)
- Moot. It would be, "Moose: moot".
- Moose: moot.
- They didn't have a shredder big enough to take care of all these
- But wait a minute!
- No, that would have been obvious, up front. This [i.e., the fire]
was an "Act of God".
- There's a whole group of banks and CPAs tied in with the "China
White", reportedly. They had other records that they could have
reconstructed and gotten the picture! The Foreman(?) Bank and
Trust, the Heritage Bank, banks that dealt with Tezak, that is,
the Heritage Bank of Crest Hill, which is a Joliet suburb. They
could've, you know, they could've reconstructed it. They could've
gone to Gail Ginsburg and say, "Hey! You're the Assistant U.S.
Attorney assigned to the Small Business Administration. Come up
with some more records."
The thing was dropped.
Now what happened is...
- This sort of stuff happens a lot in Chicago, though. Doesn't it?
- This is Joliet! I mean, this is south of Chicago.
- So what you're actually saying then is that all of these people
were in a conspiracy...
- Valukas, Dan Webb, Tezak's lawyer.
So by 1993, O.K.? The Treasury [Department] unit, the highly
secret [unit], did not shut down their investigation as
demanded by the CIA, the NSA. They continued to probe. And we've
talked on this program that there is an ongoing fight, coming out
in the open, between the Treasury and the Justice Department
[unclear] the Clinton White House.
- ...there is another way to look at this...
- Yeah. Tell us.
- ...than a fight between the Justice Department and the Treasury
Department. You might be able to see this as a fight between the
forces which like to import narcotics from Latin America, and
those who like to import narcotics from Asia.
- That's a... You added a new light to the thing!
- Because the Triad societies...
- Write it down!
- ...the Triad societies are in a process of fighting the Mexican
Mafia, because they want to be able to import "China White" over
the Mexican [unclear]. So there is a fight going on between them,
and it's going to be a devastating fight. The reason why "Slick
Willy" pushed NAFTA was to enable there to be an alleged free
market flowing between Mexico and the U.S. -- meaning a narcotics
flow rather than a business flow. That is his main purpose in
[...to be continued...]
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