posted on Dec, 16 2012 @ 05:34 PM
KI wasn't sure where to post this, but since there doesn't appear to be a finance conspiracy forum, I suppose this is the next best thing. I
didn't realize until the CT shooting that I was involved with the LIBOR scandal. I never benefitted from it--I got out when I realized what was
going on--and I can share everything that I know (such as it is) without fear of implicating myself in any way. Fair warning, I signed a
confidentiality agreement (years and years ago) but as none of the companies with which I dealt exist any more (except the banks) I'm not too afraid
of anyone coming after me.
First, understand how it started. In 2002 I came up with a few really groundbreaking ideas for technology surrounding the MMORPG industry, which was
still growing. I discussed the ideas with some trusted friends, and one of them suggested that I bundle my project with his, and we could develop
them together. His company was L33T games, Inc, based out of central PA. I bit, and joined his fledgeling group (he was developing a RPG of his
Three years later, after many "we almost have the funds" messages, I finally had enough of sitting around. I'm a fixer and a do-er, not a sitter.
So I came to him and demanded that we either sever or he brought me into the funding process (my people were beyond antsy on the subject, and I had a
stellar team assembled). He brought me in, and that is when I dug into what was happening and learned what I will now share with you.
First, the LIBOR scam was around long before I got involved. I got involved between 2005 and 2007, and by that time there were several not-very-nice
people involved. I'll get into that a little bit more, but for now accept that the major players weren't above a little bit of hard-ball, as it
First, there was the 'Emmanuel Project'. This billed itself as an angel-investment firm, but it wasn't. It ended up being a laundering system for
money made off of human misery--everything from gun-smuggling to drugs to slavery. Most of their money appeared to come out of Qatar, although there
was some Saudi and other muslim money mixed in. Another company was calling itself 'Pegasus Financial'. There have been plenty of those floating
around, and I'd be hard pressed to find the correct one. Pegasus was under investigation, I believe, by some agency or another for funding weapons
to the southern African continent. I never got that deep, and steered things away as I could.
Regardless of the extra-national corporations involved, the process went through brokers with limited information. No one was allowed to discuss any
of the specifics with anyone. Once you were 'in', however, you had the capacity to pretty much print your own paycheck. I'll get into that in a
bit. First, the process of getting 'in'.
Initially, you had to make friends with a bank executive. They're pretty much all whores, so that isn't too much of a problem. You fly out to
them, or fly them to you, and grease the gears with plenty of money. You buy them expensive dinners, have drunken binges, and play a lot of golf.
Not every executive would be willing to work with you, so you had to pick your opportunites carefully. On the bank-side it was a very elite club.
Those who understood the scam used it to make money for themselves. Others would look at it and decline. I ran into a lot of them. Peter Lanza was
one of the people I dealt with, during that time. He liked me, and called the deal a 'no brainer', but after talking to our CEO said, "don't ever
call me again." We got that a lot. Our CEO often rubbed people the wrong way, and it's the reason I'm not speaking to a senate investagatory
committee right now.
Once you had an executive ready to work with you, you set up a loan account. The loan had to be in even multiples of $100,000 USD, up to $10,000,000
USD. Additionally, the deal had to be with a bank which was SWIFT enabled. I checked things out with my father on this, who was retired from the
banking community. He assured me that, even though the deal seemed wierd, it was still very legal. The SWIFT accessibility allowed outside banks to
verify funds. Think of it as email for the banking community.
Once this was in place, the 'investors' would deposit the full amount of the loan, including interest, into a money-market or CD account with the
same bank. In this manner, the bank would be assured return on its investment. Finally, the account would be severed into two different accounts:
one for the principle, and one for the interest. The Investor would be guaranteed the interest on the investment, regardless of the success or
failure of the venture. Classic money laundering. But that was when the money would start to get made.
It didn't matter if you had a product or not. Most ventures were just shells designed to print money and live large. Once the accounts were all in
place, the money would be entered into the bank-trade system. (cont'd)