Posted on 07/26/2002 2:55:36 PM PDT by press
GRAY MONEY
Activists seeking documentation that would support claims that the state of Arkansas was involved with money laundering on a massive scale may have found the missing link in their three year search. Documents obtained by the Arkansas Committee show that the Arkansas Development and Finance Authority, a Bill Clinton signature project, was involved in a highly questionable, and possibly illegal, sixty-million dollar deal in which ADFA borrowed 5 million dollars from a Japanese bank in order to buy stock in a Barbados insurance company. The stock was not registered with the Securities and Exchange Commission. The state of Arkansas was the lead investor in a deal which poured sixty million dollars through a Barbados company, Coral Reinsurance, which is currently under investigation by insurance regulators in New York, Pennsylvania, and Delaware as well as by Manhattan District Attorney Robert Morgenthau, lead prosecutor in the BCCI scandal.
Additionally,the Ozark Gazette has recently been told that as a result of the release of the Coral documents the independent counsel, Kenneth Starr, is also investigating the deal. Persons involved in the deal, which began in 1987 and ended in 1991, include Bob Nash, then president of ADFA and now Personnel Director of the White House, Robert Rubin, then president of Goldman Sach's investment bank and now Secretary of the Treasury, and Maurice Greenburg, president of American International Group, and a candidate in 1995 to be Director of Central Intelligence.
The American International Group is a 100-billion dollar, multi-national insurance company which founded Coral Reinsurance Company in 1987. The fact that AIG founded Coral was hidden from insurance regulators for at least 3 years and was only recently proven by the reluctant release by ADFA of the original stock placement memorandum. Maurice Greenburg as president of AIG is a very well connected businessman and a player in international politics. He serves as the chairman of the US-China Business Council and lobbied hard (and successfully) for the Clinton administration to sever the link between China's human rights record and renewal of China's most-favored-nation trade status. Members of the board of directors of AIG include Martin Feldstein, Harvard University economics professor and former chairman of the President's Council of Economic Advisors and Carla Hills, former U.S. trade representative. AIG's international advisory board is headed by Henry A. Kissinger.
The original deal was pitched to ADFA by Goldman-Sachs, a New York based securities firm which played an important role in the transaction. Goldman-Sachs had pledged to sell the stock for Coral and in addition pledged to buy the stock if for any reason the other investors could not hold it and were forced to sell. Goldman's president at the time was Robert Rubin, later appointed by the Clinton administration to succeed Lloyd Bentsen as the Secretary of the Treasury.
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