$250 Billion Treasury Note Cloaked in Mystery – Evades Public Scrutiny

2010-11-12T10:30:00.021-05:00

Originally posted at my Wordpress blog -Thursday, April 30th, 2009

4-30-2009

It all started with a Bloomberg News article entitled “Bayou’s Israel Cheated in Scam,” published on July 15, 2008 by court reporters David Glovin and Bob Van Voris. http://www.bloomberg.com/apps/news?pid=20601127&sid=aLCwdJsx0V3M&refer=law

The article talked about Samuel Israel of Bayou Management Group LLC being cheated by Robert Booth Nichols, “who in a 1993 lawsuit claimed to have worked for the U.S. Central Intelligence Agency for 20 years. Nichols was also the target of a 1987 probe by the Federal Bureau of Investigation of organized crime in the entertainment industry,” wrote Bloomberg.

An excerpt of the article read as follows: “As Samuel Israel grew desperate to raise money in 2004 to save his Bayou Group LLC hedge fund firm, he turned for help to a Hawaii man who promised a windfall and then conned him out of $10 million, said a U.K. investigator.

“Robert Booth Nichols cheated Israel, later convicted in his own $400 million theft, in a ‘prime bank’ fraud, a scheme used by con-artists promising quick riches in secret markets, the U.K. investigator said in a document filed in June in federal court in New York. U.S. prosecutors seeking to recover funds for Bayou investors won a British judge’s ruling in November freezing $1 million Nichols held there, and they may be pursuing millions more in Singapore, Nichols’s lawyer said.”

Robert Booth Nichols, 65, denied wrongdoing and sought to retain the $1 million in London. He said in court papers that he helped Israel invest in a legitimate, though unspecified “project” involving U.S. government obligations. Nichols said he had no reason to believe Israel was engaged in fraud.

“He was asked to find something, and he found it,” Nichols’s lawyer, Joseph Bainton, told Bloomberg, declining to elaborate. “There are very few people capable of performing this service, for which he was paid a lump sum of $10 million.”

Nichols said in court papers that he believed the investment was on behalf of Israel personally, that Nichols was told his services “involved matters of national interest,” and that a first cousin of President G. W. Bush, John P. Ellis, vouched for the legitimacy of the transaction. Nichols said the deal required him to contact representatives of foreign governments that he knew, according to court documents.

Nichols’ lawyer told Bloomberg that “Mr. Ellis attended some meetings and gave Mr. Nichols some assurance with respect to the approval of the United States.” Ellis worked at GH Venture Partners in 2004, according to Nichols’ court documents.

The criminal case is U.S. v. Israel, 05cr1039, U.S. District Court, Southern District of New York (Manhattan).

The bankruptcy case is In re Bayou Group LLC, 06-22306, U.S. Bankruptcy Court, Southern District New York (White Plains).

The missing link in the above story is the $250 Billion Treasury Note secured by 2,500 metric tons of gold at the Atlanta Federal Reserve, Serial Number SC 3040-20. Robert Booth Nichols’ lawyer described this to Bloomberg as an unspecified “project” involving U.S. government obligations. However, the reporters had no knowledge at the time they wrote the story that the “project” for which Nichols was paid $10 million allegedly involved Nichols locating and obtaining the Treasury Note for Samuel Israel and depositing it at the London Safe Deposit Box Company Ltd. http://londonsafedeposit.co.uk/

In early July 2008 Samuel Israel was already in custody for conspiracy and fraud, including misappropriation of millions of dollars in investor funds for his personal use http://www.cnbc.com/id/25495282 and, according to court documents, he had provided details of the secret “project” to the FBI at some point in time. As a result of his cooperation, the FBI, with the assistance of the City of London Police, retrieved the Treasury Note documents at the London Safe Deposit Company and returned to the U.S.

Samuel Israel sued Robert Booth Nichols demanding the return of the $10 Million. Nichols responded in lengthy court filings that exposed the $250 Billion “project” and alleged that George Bush’s first cousin, John P. Ellis, provided confirmation of the legitimacy of the “project” and that the U.S. government sanctioned it. (Case 1:08-cv-06036-CM Document 1-8 filed 7/2/2008, Page 15 of 19).

Interestingly, nothing has been published to date in any public media, including the Internet, relative to the $250 Billion Treasury Note (“project”) discussed in Nichols’ letter/court filing to Judge Colleen McMahon (Case 1:08-cv-06036-CM Document 32-2 Filed 12/23/2008, Page 1 of 5 at the United States Courthouse in New York) in which his lawyer wrote: “On September 12, 2008 we served the enclosed Rule 30(b)(6) Notice in an attempt to quickly obtain clarification on this $250 Billion issue. The Government contends that the notice is overbroad, burdensome and oppressive. In making this assertion, the Government has yet to state plainly whether these instruments are authentic. If they are not authentic, then how burdensome could it be to produce a witness to say: ‘Sam told us he had this stuff and we finally got around to collecting it last summer.’ On the other hand, if these instruments are authentic, then this case – indeed the entire Bayou bankruptcy case – changes quite dramatically. We would like to get to the bottom of this issue quickly. The Government’s delay in producing documents has forced the parties to defer the commencement of depositions. So even if Your Honor can quickly break the logjam on the $250 Billion issue, it nonetheless appears some adjustment to the schedule is necessary.”

It is noteworthy that on July 2, 2008, just days after Samuel Israel, 48, walked into the police station in Southwick, Mass. and said he was a fugitive wanted by the federal government, Robert Booth Nichols’s lawyer filed a “Demand for Trial by Jury” at the court in New York. (Document 1-9).

In effect, it appears Nichols was blackmailing the powers that be because a public trial would have exposed a scandal far exceeding the Bernie Madoff fiasco. This was not the first time Nichols had used this tactic. On March 23, 1993 the Los Angeles Times had published a story entitled, “Trial Offers Murky Peek Into World of Intrigue” which reported that Nichols presented himself during testimony as a globe-trotting businessman and intelligence operative. Armed with letters on White House stationary and snapshots of himself posing with foreign political and military dignitaries, Nichols told jurors that he toiled quietly and selflessly for nearly two decades on behalf of the CIA in more than 30 nations from Central America to Southeast Asia.

The Los Angeles Times reported that Nichols was investigated by the FBI for international money laundering in 1978. In a 1987 federal court wiretapping affidavit, prepared by FBI Agent Thomas G. Gates, it stated that “FBI investigative files further reveal that Nichols may have been associating with the Gambino La Cosa Nostra organized crime family in New York.” The court case in Los Angeles ended in a mistrial, wrote the Times.

Of late, Nichol’s demand for a Trial by Jury in the Bayou case was effective. In January 2009 Bayou Management and Nichols came to an agreement to settle out of court for an undisclosed amount of money. The court gave Nichols 45 days to come up with the money, which would have been March 6, 2009, his birthday.

However, on Valentines Day, February 14, 2009 Robert Booth Nichols reportedly died in Geneva, Switzerland. Nichols and a friend, a New York stockbroker [name withheld], had been staying at a hotel near the airport while conducting business in Geneva. When Nichols failed to show up at a meeting in the morning, his friend found him dead and identified the body to authorities. The exact cause of death was not determined, but authorities believe he died of a massive heart attack. There was also a blow to the head, but police assumed that was caused when he fell to the floor. The friend reportedly arranged to have the body cremated in Geneva and the U.S. Embassy in Bern notified Nichols’ wife, Ellen, in California.

(Embassy of the United States Bern, Sulgeneckstrasse 19, CH-3007 Bern, Switzerland, (031) 357-7011). http://bern.usembassy.gov/contact.html

Currently there are numerous factions chasing the Treasury Note in an attempt to learn if it is authentic, or not? According to one source, a copy of the $250 Billion Treasury Note was attached to Samuel Israel’s original court filings against Robert Booth Nichols, but that exhibit has apparently been redacted from the Internet court records. The source suggested placing the names, case numbers, etc. into the boxes and searching for related docket information at the following website: http://dockets.justia.com/docket/court-nysdce/case_no-1:2008cv06036/case_id-328683/

Meanwhile, it appears that all references to the Treasury Note are being systematically erased from the Internet, the court, and other areas, including witnesses. As of April 15, 2009 the Bayou case had reportedly not been vacated, though Nichol’s lawyer had notified the court that his client was deceased.

Theories abound as to whether Nichols actually died and took his secret to the grave, or simply disappeared into the international netherworld where aging spies and intelligence operatives go to retire. It is unknown whether Nichols paid the settlement money to Bayou before his death, or if it remains unpaid. Some theorize he was murdered to keep him from testifying in court about the “project” and John P. Ellis. Others believe the government came to his rescue and he is in protective custody until such time as he can be used as a witness to high crimes in previous administrations.

Investigations are underway on the subject of Nichol’s alleged death; in the meantime, the Treasury Note is a mystery that has a history and a paper-trail, and the question remains, is it authentic? One source said Prosecutor Jeff Alberts filed a letter to the court stating the Treasury Note was not authentic, but he was unable to produce a copy of the letter.

One retired banker in Europe provided some history on the Treasury Note. He wrote: “Having spoken with a banker friend in Switzerland, he related to me that the 2500 m/t of Au [gold] used to secure the TN was originally 10,000 m/t. And that in 1983 four TN’s were created secured by 25% of the Au in the depository. In other words the TN in question is 1-of-4 created in 1983.”

The banker followed up with: “You are absolutely correct in that there were 5 TN, whereas, I originally related there were 4; the 4th was split into 2 TN’s, thereby creating 5 TN’s secured by the 10 m/t of Au. Also confirmed that the names of the TN’s, as stated within your e-mail is correct.

The run on the bank that you referred to occurred when the bank holding the lien called in their loan(s) for apparently $550B, which shook the financial foundations around the world. What I am unable to find out is ‘WHICH’ bank called in their marker?? Basically, it is an obligation of the Treasury. Apparently, the Judge ordered the attorney’s to find out if the TN was real or not… that started the snowball that’s bout’ to ‘blow the socks off’ of the entire game.”

After further investigation, the banker wrote: “I called a banker friend in Zurich this morning to see what he might know? He related that Au held in US Fed depositories have heavy liens/encumbrances, of which, many may be fraudulent. Asking what he knew, or had heard about the leverage liens currently in the Fed depository in Atlanta? And asked if he knew anything specifically about 2500 metric tons of Au at the Atlanta facility? His remark was stunning, quote: ‘The word is that US held assets may have debenture liens in excess of 4x its value.’

I asked: ‘You mean 4x its value at $400+ p/oz. 10 years ago, or 4x its value today?’ He answered: ‘At today’s strike prices’ Asked how he knew? He said, ‘They’d received several memos beginning months ago and that Swiss banks haven’t traded in US Fed deposits (either, liened or leveraged) for over a year.’ Further, ‘They will only advance cash or credits to 80% of current market value (in lieu of) clean collateral.’ (Meaning no liens and/or encumbrances).

Based on what has been related by what I consider a creditable source, it is possible the paper in question [Treasury Note] may well be fraudulent.”

The Bernie Madoff ponzi scheme reportedly amounted to less than $50 Billion-http://www.time.com/time/business/article/0,8599,1866689,00.html yet it received overwhelming media coverage.
If the Treasury Note in question was a $250 Billion ponzi scheme perpetrated by Robert Booth Nichols against Samuel Israel, then why all the secrecy surrounding it? Why no media coverage of the Treasury Note despite the fact that Bayou Management was peripherally connected to the Madoff case? Is the Treasury Note authentic after all?

If anyone has valid information on the Treasury Note, or can provide a copy of the Treasury Note, please contact desertfae@gmail.com

(c) 2009 desertfae.com No part of this document may be duplicated, advanced, or distributed without written permission. To gain written permission please email desertfae@gmail.com

Kyrie Eleison, Christe Eleison, Kyrie Eleison

2010-08-04T23:33:00.001-04:00

Gregorian Chant-Hip Hop Style

Emotions & me

2010-07-29T11:51:00.003-04:00

I stuff my emotions a lot. A lot of times, my hurt comes out as anger etc. I'm not really an 'angry' type person though. I'm actually really easy to get along with unless you're a murderer, or corrupt. My mom used to say I'm a lot like my dad.. I like to help people and would do anything for a friend (within reason that is lol.. I won't do anything illegal).
I felt before the AG's office tucked tail and ran, that I was actually starting to heal from the trauma the murders caused me, but since they decided to slap me in the face by not only releasing the murderer, but doing so ON THE ANNIVERSARY of the murders, it kind of re-traumatized me, I think. Without going into details, it involved a lot of tears, guilt, a lot of questioning myself, God, and feeling like I've let my dad, God, and the world down. I know that's not really the case, but what they did really, really affected me.
Here's the deal, I'm a VERY spiritual person... and because of the situation with the murderer, I have to deal with his followers threatening me, saying how "God is on their side" etc. I don't normally talk about my beliefs though. I feel that it's a personal thing between God and I... but you know what, the little bit of time we are here on earth is so tiny compared to eternity, that you really have to think about how your actions here can determine what happens later, ya know. I know, in the end, that all these followers and Hughes himself, will have to answer for what they have done, as will I.... and I'm good with that on my end... I have to wonder if they are.

Well, I've done it...

2010-07-28T12:27:00.003-04:00

I trashed the blog on my site because the hackers just wouldn't leave it alone... so here I am. I still need to link this to my site, which I may do later today after I get back from the gym.
I have LOTS to talk about... but right now, I'm late getting to the gym.
Funny, I stall going there but once I get going it's a blast ~shrug~

Hello!

2008-10-19T01:06:00.002-04:00

I decided today to also get a blogger in addition to my blog at my site.
The blog at my site is my main blog and has posts regarding my case, videos and a few rants. I think I'll make this blog a more personal blog, although, if there is anything important at my other blog I'll probably say so here as well.
You may be wondering who I am?
I'm the daughter of a murder victim who was killed along with his best friend and his best friend's housemate. My dad and his best friend Fred Alvarez were trying to expose all the operations that were going on at the Cabazon reservation in California. Fred was a tribal leader and knew what was going on there was wrong, and he asked my dad to help him.
It's a long story how I got to where I am now, but to give you the shortened version: I had no idea these things were going on until about a year ago when I randomly found a book with my dad's name in it. I called the police upset because someone was making money off my dad's murder and they informed me that the things I had found online and in other books were true, and that they wouldn't do anything about it unless I got them evidence.
So 26 years after the murders I began my own investigation. What I've uncovered has shocked me and was more than enough to reopen a case that has sat on a shelf for 1/4 of a century.
I also have the same contacts as Danny Casolaro (a journalist that was looking into all of this), as well as a lot more info that Danny didn't have.
If you're interested in learning more about this case, please visit my site, join my facebook and follow me on twitter.
What else is there to say about me... I'm married, I have kids that are now out of the house for safety reasons, obviously I investigate stuff, I don't really watch TV (no time), I'm a 'geek' and a gamer, I get along with just about anyone (except the 'bad guys'), I've confronted with hidden camera people like Oliver North and Jimmy Hughes and put the video's on my site, I have a dog and 3 cats, I love pedicures and doing my toenails in pretty colors, and I'm sure there's more but I can't think now because it's like 1:30am lol

desertfae-Random Ramblings

$250 Billion Treasury Note Cloaked in Mystery – Evades Public Scrutiny

Kyrie Eleison, Christe Eleison, Kyrie Eleison

Emotions & me

Well, I've done it...

Hello!