QUOTES OF THE DAY (2/13/00): "One obstacle is that banks and other private institutions have been reluctant to divulge any evidence of computer intrusions for fear that it will leak and erode the confidence of their customers. The situation is improving, but more cooperation is needed from major corporations, and the CIA remains willing to share information with such firms about the risks they might face." John Deutch, then CIA Director, The Washington Post, June 26, 1996, page A19.)
"If everything Citibank did was legal, then what are bank regulators doing to make sure this kind of thing doesn't happen again? And the flip side of that is if what Citibank did was illegal, then what has the Justice Department been doing for the last three years?" David McKean, minority staff director of the Senate Permanent Subcommittee on Investigations, which requested the GAO report on Citibank in 1998 regarding its activities during the mid-nineties.
THE ULTIMATE REVOLVING DOOR! AND DEUTCH'S MOUSE CAUGHT IN THE DOORS?
John Deutch resigned as CIA director in December 1996. Deutch was immediately elected to the board of directors of Citibank-- reputedly the largest U.S. bank. Also in December 1996, the CIA discovered that Deutch had placed classified information on unsecured computers at his home. It is estimated that up to 17,000 classified files plus his day-to day diary were placed on his unsecured home PC. This PC was accessible via the internet, and was also used to down load porn by unidentified persons at his household. The CIA didn't notify the FBI or DOJ about Deutch's mishandling of classified data for more than one year. In 1999, the DOJ decided to not prosecute Deutch.
Deutch's former boss, CIA Director Tenet, appointed Nora Slatkin, the CIA's Executive Director, as the CIA's investigation monitor regarding Deutch's mishandling of classified information on his home computer.
While Slatkin was still monitoring Deutch's case, Deutch recommended her for a management job at Citibank. The New York Times reported (2/12/00) that although Slatkin notified the agency in June 1997 that she was considering a job with Citibank and would withdraw from consideration of matters involving the bank, within a month she reviewed a CIA internal report of findings in the Deutch investigation. In September 1997, Slatkin resigned from the CIA and became a Citibank Vice-President the next month.
CITIBANK--THE LAUNDRY BANK! Deutch and Director Tenet hope the public believes that Deutch's vast CIA connections (and his little old home computer full of classified data and porn) didn't help his resume when he was appointed to the Citibank Board. CITIBANK bought some CIA cover as it found itself engaged (with a non willful blindness, of course), in international money laundering schemes with Russia's top hacker and with Mexico's Raul Salinas.
Vladimir Levin, member of St. Petersburg's elite computer genius community, hacked into Citibank and laundered approximately $10 Million. Neil J. Gallagher Deputy Assistant Director Criminal Division FBI reported to the Joint Economic Committee, U.S. Congress on March 24, 1998:
"In 1994, subjects in Russian gained unauthorized access to Citibank's Case Management System. As a result more than $10 million was wire transferred to pre-established accounts throughout the world. It was unclear where the attack was originating when the FBI began to monitor the cash movements through Citibank's central wire transfer department. Monitoring began in July and continued into October, during which there were 40 transactions. Cash was moved from accounts as far away as Argentina and Indonesia to bank accounts in San Francisco, Finland, Russia, Switzerland, Germany and Israel. In the end, all but $400,000 taken before monitoring began was recovered. The investigation resulted in six foreign nationals being charged in the United States. Citibank says it has found no evidence of insider cooperation with the hacker. Vladimir Levin was arrested in February 1995 by Scotland Yard based on a provisional warrant and was extradited from England in September of 1997. He pled guilty on January 23, 1998 to conspiracy."
HOW LEVIN PULLED OFF THE CITIBANK CAPER! (and what part of this laundering scheme goes undetected?) Alexei Lachmanov, a Georgian national using a Greek passport, was arrested by Israeli police when he tried to withdraw $1 Million in funds which were electronically transferred to five Israeli banks from Invest-capital, the Argentine subsidiary of Citibank. These transfers were done with the illegal use of Invest-capital's own secret codes. In fact, it was Levin who conducted electronic transfers from Citibank's subsidiaries in Argentina and Indonesia to various banks in San Francisco, Tel-Aviv, Amsterdam, Germany and Finland. It was suggested by Russian reporters that Levin had cracked the electronic defense of SWIFT, a secretive Belgium-based electronic telecommunication consortia of leading world banks, which does mutual settlement payments among its members. Citibank denied that SWIFT was cracked and claimed that Citibank knew all along about Levin's infiltration, and played along with him so the FBI could monitor him, then arrest him. (Citibank certainly knows how to save face by claiming it was working for the FBI [or Deutch's CIA?] as it was looking like the world's Laundromat?)
AND THEN THERE WAS THE SALINAS CITIBANK LOVE AFFAIR!
Citibank Called Lax on Salinas Money Trail.
As reported by Kathleen Day Washington Post Staff Writer Friday, December 4, 1998; Page A01 © 1998
"Citibank, the nation's second-largest bank, failed to follow its own procedures against money laundering and "facilitated a money- managing system that disguised the origin, destination and beneficial owner of the funds," says the report by the General Accounting Office, the investigative arm of Congress.
Congressional officials said the report, titled "Raul Salinas, Citibank and Alleged Money Laundering," is likely to lead to congressional hearings on Citibank next year and could prod the Justice Department, which for three years has been investigating Citibank's handling of Raul Salinas's money, to speed up its probe into whether the bank broke any criminal laws. Citibank is now part of the banking and insurance giant Citigroup Inc."
Read the entire article at: http://www.washingtonpost.com/wp_srv/inatl/longterm/mexico/stories/981204.htm
IS CITIBANK, THE NEW CIA BANK? BETWEEN DEUTCH AND SLATKIN THEY'VE GOT ALL THE DATA! (Not to worry: they took oaths.) CITIBANK HAS TAKEN THE CAKE FROM BANK OF AMERICA AND BCCI!