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• The "Pizza Connec­ tion" heroin-trafficking ring that ran between New York and Sicily, led by Italian mafioso Gaetano Badala­ Dope, Inc. 's man at menti, had a "friend" at Credit Suisse, particularly the Justice Dept at the Bellinzona branch, where the gang's couriers by Jeffrey Steinberg deposited nearly $5 million in less than two years. An indictment handed down by Within the next few weeks, a bipartisan coalition of senators U.S. Attorney for the Southern District of New York Ru­ will introduce a law making it a felony for bank and casino dolph Giuliani, lists the numbered Credit Suisse accounts officials to launder dope money and other crime revenues that received the heroin money: Account 651: $3,218,300; (see Congressional Closeup, pages 68-69). While it remains Account 386: $1,425,000; Account 11648301: $81,000. to be seen whether the bill will contain provisions holding • Operation Greenback, the first major federal investi­ top bank executives responsible for their banks' failure to gation of drug-money laundering, involving the Enforcement guard against dope-money contamination, the bill would cer­ Division of the Treasury Department and the Drug Enforce­ tainly give teeth to President Reagan's recently invigorated ment Administration, nailed Credit Suisse's Miami branch war on drugs. in· repeated violations of currency transaction reports. It is likely that even as the Senate Judiciary Committee is • Robert Vesco and Investors Overseas Services used marking up this controversial piece of legislation, it will be Credit Suisse as their major bank during the entire time that holding hearings on the nomination of Boston u. S. Attorney Vesco, who is now running the cocaine trade out of Havana, William Weld as chief of the Criminal Division of the De­ Cuba, was swindling investors to build his personal fortune. partment of Justice, the fourth-highest position at the DoJ. Credit Suisse even made itself legally responsible for lOS If members of the Senate Judiciary Committee are serious paper, deploying its officers to act as salesmen for Vesco. about shutting off the annual flow of hundreds of billions of • Former Assistant Secretary of the Treasury John Walk­ dollars in dope money through the U.S. banking system, they er, who is now a federal judge, testified before the U.S. will kill the Weld nomination before it ever reaches the Sen­ Senate in March 1985 that of the $1.22 billion in cash trans­ ate floor. For William Weld is Dope, Inc.'s man inside the ferred back and forth between Boston and Switzerland­ Halls of Justice. without being reported, as required by law-some $600mil­ lion was in small bills. Walker called these transactions a Bank of Boston: 'a gentlemen's agreement' "classic case of drug-money laundering." On Feb. 7, 1985, Weld's office announced that a plea But "tough prosecutor" Weld issued a one-count indict­ bargain settlement had been reached with the Bank of Bos­ ment, in which not a single official of the Bank of Boston ton-the largest bank in New England and an institution with was named as a defendant. A measly $500,000 in fines was deep ties to the Weld family-founded White Weld and Co. levied by Federal District Court Judge A. David Mazzone. investment house. Conflict of interest was written all over Senator Al D'Amato (R-N.Y.) rightly described the fine the sweetheart deal that the U. S. attorney negotiated with his against the Bank of Boston, as "a pittance," an absurd "four fellow bluebloods from the Bank of Boston. ten-thousandths" of the money laundered. Even Bank ofBos­ It seems that the Bank of Boston had, in a period of ton chairman and CEO WilliamBrown, in the course of being slightly over one year, allowed $1 ,218,682,281 in hot money grilled by congressional committee members in spring 1985, to be laundered through its accounts into nine overseas banks. was forced to admit that the bank had made off with fantastic In every one of these transfers-I,163 separate criminal profits on the dirty-money dealings-even after the fines and acts-the bank had failed to report cash transactions of over legal costs had been paid. Senator D'Amato, however, never $10,000 each, in violation of a federal bank secrecy act. The delved into the personal connections of Weld to Credit Suisse. principal overseas recipient of the dirty money had been the In 1978, during the final years in which William Weld's Zurich main branch of Credit Suisse, a financial institution father, David Weld, was chief executive officerof the family­ that Swiss investigators describe as virtually synonymous owned White Weld, 31 % ownership was sold to Credit Suisse with drug-money laundering. in a mega-deal that saw the majority of White Weld absorbed A survey of Credit Suisse's dirty dealings, taken among into Merrill Lynch-then chaired by Donald T. Regan. When law enforcement agencies of several Western countries, con­ the dust settled on the complex deal, Credit Suisse owned firms that Credit Suisse may well be the "king" of Swiss outright the London and Geneva branches of White Weld laundromats. A small portion of that file shows: (branches that accounted for two-thirds of the company's

EIR August 1, 1986 Feature 51

© 1986 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. �I profits) and merged them with another Boston Brahmin in­ the cash transactions that wer willfully concealed by the stitution, First Boston Corporation, forming Credit Suisse­ Bank of Boston. In his 1978 lJnsuccessful election bid for First Boston. The chairmanship of the Geneva branch of state attorneygeneral, Weld rectived campaign contributions White Weld (renamed Clariden Bank) was retainedby Robert from two Bank of Boston officials: William C. Mercer, an Genillard, the man who originally established theWhite Weld­ honorary director, and Peter M� Whitman, senior vice-pres­ Credit Suisse connection in the 196Os, under the auspices of ident. Furthermore, William Weld's cousin Christopher is David Weld. the managing partner of the Bpston lawfirm, Sullivan and According to William Weld's personal financial disclo­ Worchester, attorneys for the ijank of Boston. sure, he is tied to both sides of the bank transfers involved in Potentially even more impbrtant, William Weld today

consumer victimization.... Public Integrity Section investigates and prosecutes corruption cases involving public officialsand the elective system at the Federal, State, and local levels. Appellate Section assists ithe Office of the Solicitor Whatdoes theDoJ's General in obtaining favorable fonstitutional and statutory Criminal Division do? interpretations iii criminal ca�es being heard on appeal before the United States Supretlne Courtand the 12 United States Courts of Appeals. The following description is excerpted from the "U.S. General Litigation and Ltgal Advice Section inves­ GovernmentManual" : tigates and prosecutes crimes �nder a broad spectrum of Federal criminal statutes reghrding crimes against the The Assistant Attorney General in charge of the Criminal Governmentand the pUblic .. � . Division formulates criminal law enforcement policies, Office of International Affairs supports the Depart­ enforces, and exercises general supervision over all Fed­ ment's legal divisions, the U.S.attorneys, and the State eral criminal laws except those specificallyassigned to the and local prosecutors regarding internationalcriminal jus­ Antitrust, Civil Rights, Land and Natural Resources, and tice enforcement matters purs�ant to treaties concerning Tax Divisions.The Criminal Division also supervises cer­ extradition, mutual legal assistance, and prisoner ex- tain civil litigation incidental to Federal law enforcement change. . . . i activities. Office of Enforcement O�erations oversees the use Organized Crime and Racketeering Section con­ of sensitive and sophisticated investigative tools, such as ducts investigations and prosecutes cases to suppress the witness protection and electronic surveillance.... illicit activities carried on by organized crime groups in Office of Legislation develops legislative proposals, major U.S.cities .... legal memoranda, and congre�sional testimony and pre­ Narcotic and Dangerous Drugs Section investigates pares comments upon pending and proposed legislation and prosecutes high-Iev�l drug traffickers and members affecting the Federal criminal justice system.. . . of criminal organizations involved in the importation, Officeof Policy and Man�gement Analysis develops manufacture, shipment, or distribution of illicit narcotics and recommends positions o� policy and management and dangerous drugs, with particular emphasis on litiga­ issues.. . . i tion attacking the financial bases of those criminal organ­ Office of Special Investications detects, identifies, izations. and takes appropriate legal action leading to the denatur­ Internal Security Section investigates and prosecutes alization and/or deportation o( Nazi war criminals in the cases affecting the national security, foreign relations, and United States who were involved in the atrocities com­ the export of military and strategiccommodities and tech­ mitted against civilian populiations during the Second nology. . .. The Section has exclusive prosecutorial re­ World War and who subsequently entered the United States sponsibility for criminal statutes regarding espionage, illegally. sabotage, neutrality, and atomic energy. Office of Administration provides all administrative Fraud Section directs and coordinates the Federal support to each of the various $ections.... effort against fraud and white-collar crime, focusing pri­ Asset Forfeiture Office hevelops uniform policies marily upon frauds against governmentprograms and pro­ and assists in the prosecution: of both civil and criminal curement, transnational and multidistrict fraud, the secu­ asset forfeiture cases, particplarly regarding narcotics rity and commodity exchanges, banking practices, and trafficking and organized crime.. . .

52 Feature EIR August 1, 1986 serves as trustee of six trusts established by his late father in his will, for the benefit of his. heirs. There has not been, to i date, any investigation into whether these trusts are related to either the Bank of Boston, Credit Suisse, or any of the Dope lobby P1rills other banks identified in the transactions for which Bank of Boston was indicted. Weld's strings Gossips in Washington, D.C. identify William Weld as the "first U. S. attorney to make a major bank sweat under a by Michele Steinberg federal criminal indictment," but this is far from the truth. Boston sources reported to EIR that Weld's slap on the wrist I to the Bank of Boston was part of a despe,ate effort to keep Since October 1984, a grand-jury investigation, launched by the bank's relationship to the organized-crime Angiulo fam­ Boston U.S. Attorney William Weld, has operated with a ily-a relationship that saw an additional estimated $2.2 vengeance against Democratic Partytiolitical figure Lyndon million laundered through the Bank of Boston, which had LaRouche,Jr. So blatant is this witchlJunt,that Weld's office granted the Angiulos an exemption to federal reporting re­ has filed for over $430,000 in fines to be imposed against quirements-totally out of the one-count felony indictment. organizations associated with LaRouthe-which compares In point of fact, Weld had jurisdiction over and knowledge poorly to the $500,000 fine against tile Bank of Boston for of the Bank of Boston-Angiulo connection, from no later its money-laundering crimes. than 1983. It was the Angiulo investigation which first un­ In the LaRouche case':'-a two-yeu, multimillion-dollar covered the $1.22 billion in unreported cash transactions. witchhunt, launched on the basis ofl bogus accusations of The Angiulo family is known in law enforcement circles credit card fraud-Weld has reacheddeep into the gutters of to be the number-one mob family in New England. Yet, top the dope lobby to bring forward "witnesses." officials of the Bank of Boston issued currency exemptions One such "witness" is Dennis King, a former leading to a string of Angiulo business fronts. Were the Bank of member of the communist Progressi�e Labor Party, whose Boston-Angiulo connection to be pursued, the scope of the delirious writings on LaRouche have:appeared in the pages Weld protection racket would trigger a scandal that would of High Times, the organ of the Amdrican pro-dope lobby. rock the Bostori financial establishment. King's major published work on LaRouche was a 13-part Several months afterthe Bank of Boston "felony rap" had series in 1979-80 in the pages of OUT Thwn, a New York City beenswept under the rug,so confidentwere the bank officials throwaway sheet owned and manage4 by a convicted felon, . in Weld's coverup abilities, that they "discovered" an addi­ Edward Kayatt. tional $73 million in currency-reporting violations and re­ Other sources have reported that IWeid has also tapped portedthe information to Weld-who took no legal action. the services of a federal witness named James Brewer, who But it would be a grave error of judgment to think of was exposed by EIR yearsago for I'IlIUling ahomosexual and William Weld as a lazy prosecutor, simply because of his prostitution blackmail ring against a nUmber of congressmen lackadaisical attitude toward prosecuting the Bank of Bos­ and other public officials, while on theiFBI's payroll. Brewer ton's ties to bigtime dope traffickers. Other banks in Boston, has been named as a member of the North American Man! which were not financially tied to Weld, were prosecuted for Boy ·Love Association (NAMBLA), la crime syndicate be­ laundering the Angiulos' money, while the "gentlemen" at lieved to be responsible for a nationwide kidnapping ring the Bank of Boston were not. targeting young boys.' Then there's the case of his five-year-long prosecution of During Brewer's long career as at federal informant, he the Democratic Party political machine of Boston Mayor was indirectly involved with Richard Mamarella, a financial Kevin White. The First District Court of Appeals, in throw­ swindler who received over $22 mi�ion in loans from the ing out one of Weld's flagship prosecutions against White First Fidelity Bank in New Jersey. TOp officials of the bank campaign official Thomas Anzalone, described Weld's are suspected of having been involv� with Mamarella in the methods as bordering on the Soviet legal principle of "guilt phony deals that saw millions of doll$'S in bankdeposits fall by analogy." The court concluded: "We cannot engage in into the hands of loan sharks and big-time dope dealers. The unprincipled interpretationof the law unless we foment law­ same First Fidelity Bank is at the very center of the Weld lessness instead of compliance." action againstLaRouche. The National Law Journal of June 13, 1983 described From the outset of the Weld "Get LaRouche" effort in the Weld vendetta against the White machine as "a textbook October 1984, it was First Fidelity Bank, with its ties to the example of a prosecutor misusing his powers to bully wit­ corrupt Resorts International, that firi;t stole approximately nesses and manipulate thepolitical process. " Weld was cited $250,000 fromthe account of LaRou4;he's.presidentiai cam­ for using improper pressure tactics, unfounded allegations, paigncommittees, and then launched federal civil litigation leaks to the press, and harassment of witnesses, including for purposes of harassment. First F"elity attorney Alfred late-night sweeps by dozens of subpoena-servingFBI agents. Besser, a former counsel to dope kiiogpin Robert Vesco,

EIR .August 1, 1986 Feature 53