	id AA07687; Thu, 1 Dec 94 11:59:31 CST
Subject: Conspiracy Nation -- Vol. 3 Num. 07


              Conspiracy Nation -- Vol. 3  Num. 07
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                    ("Quid coniuratio est?")
 
 
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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.]
 
 +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +
 
[...continued...]
 
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.
 
 
CLIFF KELLEY:
Where *is* Moose Island?
 
 
SKOLNICK:
Chanahan(?). It's right outside of Joliet.
 
 
MARK SATO:
Chanahan.
 
 
SKOLNICK:
*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.
 
 
SATO:
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.
 
 
KELLEY:
How do you pass a bond issue for $50 million secretly?
 
 
SATO:
They held the board meeting in secret. Of course, the voters were 
up in arms over it. But they got it passed.
 
 
SKOLNICK:
They got suggestions from the former Governor Clinton [laughs]. 
You know, how to *do* this thing! But...
 
 
SATO:
And that was under the guidance of Mr. Tezak's friend, John 
Anarino, who was the Will County board chairman.
 
 
SKOLNICK:
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...
 
 
JIM REIS:
It's called a "savings bank". But it falls *in-between* the 
cracks...
 
 
SKOLNICK:
All right.
 
 
REIS:
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.
 
 
SKOLNICK:
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.
 
 
SKOLNICK:
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 
Washington. O.K.?
 
This, the building, the Moose Building burned down December 4th, 
1987.
 
All right. Now...
 
 
KELLEY:
That's where all the records were.
 
 
SKOLNICK:
Yeah! That's where all the records were. And...
 
 
KELLEY:
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] 
...
 
 
SKOLNICK:
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 
Tribune*?
 
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.
 
 
SATO:
That's the *after* picture.
 
 
REIS:
That's a barbecued moose.
 
 
SKOLNICK:
Yeah! Barbecued moose.
 
 
SATO:
It's Bullwinkle.
 
 
SKOLNICK:
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.)
 
 
SATO:
Moot. It would be, "Moose: moot".
 
 
SKOLNICK:
Moose: moot.
 
 
REIS:
They didn't have a shredder big enough to take care of all these 
documents?
 
 
SKOLNICK:
But wait a minute!
 
 
KELLEY:
No, that would have been obvious, up front. This [i.e., the fire] 
was an "Act of God".
 
 
SKOLNICK:
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...
 
 
REIS:
This sort of stuff happens a lot in Chicago, though. Doesn't it?
 
 
SKOLNICK:
This is Joliet! I mean, this is *south* of Chicago.
 
 
KELLEY:
So what you're actually saying then is that all of these people 
were in a conspiracy...
 
 
SKOLNICK:
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.
 
 
SATO:
...there is another way to look at this...
 
 
SKOLNICK:
Yeah. Tell us.
 
 
SATO:
...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.
 
 
SKOLNICK:
That's a... You added a new light to the thing!
 
 
SATO:
Because the Triad societies...
 
 
SKOLNICK:
Write it down!
 
 
SATO:
...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 
pushing NAFTA.
 
                     [...to be continued...]
 
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Aperi os tuum muto, et causis omnium filiorum qui pertranseunt.
Aperi os tuum, decerne quod justum est, et judica inopem et 
  pauperem.                    -- Liber Proverbiorum  XXXI: 8-9 

 Brian Francis Redman    bigxc@prairienet.org    "The Big C"
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    Coming to you from Illinois -- "The Land of Skolnick"        
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