Conspiracy Nation -- Vol. 1 Num. 39

("Quid coniuratio est?")

[From an interview with the former marketing director of the Arkansas Development and Finance Authority, and former associate of Bill Clinton, Larry Nichols. This interview took place on the May 5, 1994 "America's Town Forum" radio show, hosted by Tom Donahue. The show is broadcast most weekday evenings at 7 pm (cst) on shortwave frequency 5.810 mHz. (Nichols speaks via telephone with Donahue.)]


TOM DONAHUE: We're back. Tom Donahue, "America's Town Forum," patriotism in action, 1-800-298-8255.

Larry Nichols, our special guest. He worked with Bill Clinton when he was Governor. He was the marketing director of the Arkansas Development and Finance Authority [ADFA].

How long were you at this agency, and what problems did you encounter? I guess you had a moral dilemma and you resigned?

LARRY NICHOLS: I apologize for having to get off the phone. A California truck pulls up in my driveway and sets there, I get a little nervous...


NICHOLS: ...and, uh, as it turns out, they left. {1}. And I was on a talk show this morning -- I'm a little paranoid -- and the talk show received death threats, so, uh...

DONAHUE: I understand.

NICHOLS: It gets a little rough sometimes.

I was there [ADFA] from February of '88 until September of '88. It didn't take me long to get in and get out. The dilemma that I was involved in is simple: If you're standing next to someone, and they rob a 7-11, you have two choices: you either say nothing, at which point you become a part of the crime, or you tell the truth, which removes culpability. The problem I had...

DONAHUE: You're talking either an accomplice or a whistle blower.

NICHOLS: That's it.

DONAHUE: One way or the other.

NICHOLS: And it's not a good position to be in, I can assure you.

The problem I had at ADFA, you see the... when I first went there, they wouldn't include me in anything. When I'm the marketing guy, how can you not include me?

Well in about 2 months I started going to the board meetings. And I found out that people that should get loans, didn't; people that shouldn't [get loans], got 'em. And I went to the president, Lou Knepp(?), and I asked, "What's the criteria? We have a problem if people find out about this." And he said, "It's whoever Bill [Clinton] wants to get the loan."

Then I found out. The thing that startled me and scared me most, which was... (and I kind of hate to have to do these little histories, but you know, it's complicated.)

DONAHUE: Yes. Um-hmm. [affirmative]

NICHOLS: Mena airport was going strong in those days. And, uh, the Mena airport, for your listeners, is the little place in Arkansas, 5500-6000 people, and it had an airport that would land jets.

Barry Seal, who was hauling arms and supplies to the Contras during the early '80s {2}, had figured out that, goodness, he could bring his planes back and the DEA [Drug Enforcement Agency] would not touch them because they were CIA planes. So he started back hauling, from Columbia and Panama, cocaine. And he was running 100 million a month in cocaine through the little Mena airport. Well the problem at Mena was, you got that much cocaine and you've got that much money -- but you have to launder that money. Dan Lasater, Bill Clinton's best friend, who went to jail with Roger Clinton for cocaine -- not selling it, but giving it away -- had a bonding, a bonding house. And guess what? He did the bond underwriting for ADFA.

We found out 2 weeks ago from a high-ranking, ex-CIA official, a person who is authentic and he is on the record, that Dan Lasater was indeed the man that [Barry] Seal used to launder the money. For Mena. Some of that laundered money went into the Arkansas Development Finance Authority.

DONAHUE: Did you know that at the time?

NICHOLS: I didn't know it, but I found it out.

DONAHUE: Um-hmm. [understands]

NICHOLS: And uh, what they were doing, they would issue a bond and let's say give, like I told your audience before, Webster Hubbell {3}, who created ADFA -- I mean drafted it, legislated it, got it passed -- he and his father-in-law, Seth Ward, got the first loan at ADFA for $2.85 million. You can't find that he ever paid anybody back.

Other, other recipients of "loans" were Don Tyson, Tyson Industries, International Paper.

Well the problem at ADFA was you couldn't find one person that ever bought the bonds. What Lasater was doing was taking the drug money, running it through ADFA as if people were buying the bonds. That money would lead ADFA to one of the banks that they used out of state, 2 of which I think were in BCCI's [Bank of Credit and Commerce International, a.k.a. Bank of Crooks and Criminals International] network. And the other underwriter of bonds at ADFA at the time was none other than Stephens' investment firm. And the man that brought BCCI to America was Jackson Stephens.

One of the banks they used in Chicago, Guaranty, guess who owns part of it? Dan Rostenkowski. {4}.

DONAHUE: Dan Rostenkowski, yeah. Um-hmm [pensive].

NICHOLS: Now you understand the rest of the story, why when Bill Clinton first got elected he fired the federal prosecutor that was on Rostenkowski's case. You also see now why he broke precedent and went to Chicago and campaigned in a primary [for "Rosty"].

DONAHUE: But isn't it poetic justice that this Mr. Stevens {5} shows up, working in another department which ended up being Bill Clinton's worst haunt?

NICHOLS: [laughs] Yes it was. And uh, Mr. Stephanopoulos is gonna be a "sacrificial lamb" for that little exercise.

DONAHUE: Now, because of the verbal exchange and he was upset that Jay Stevens had been hired there and how could that have happened?

NICHOLS: Absolutely. Now you see, to show you how slick Clinton was, when he held his infamous press conference he said that no one in his cabinet called them. Well let me give your audience a little clue, or something they didn't know: Time magazine, as you know, wrote that Saturday, with their [news] feed, saying that, in fact, Stephanopoulos had called the RTC [Resolution Trust Corporation]. Bill Clinton knew it that night. He knew that that story was coming. Yet he stood there and lied to the American people and said they knew nothing about it. And you would think, "Gosh, what a technical blunder on his part. I mean, that was stupid."

It isn't. You see, I don't know what Time magazine's circulation is, but let's give it some millions. That does not match the hundreds of million that prime time TV brings to it.

DONAHUE: Right. Um-hmm. [understands]

NICHOLS: So some millions [read] the truth. But hundreds of millions of people heard him lie and believed it.

DONAHUE: Now Jay Stevens was a former U.S. attorney who was investigating Rostenkowski in the district there. Um, then he ended up with, um, what's the oversight organization regarding S&Ls? [Savings & Loans]


DONAHUE: Yeah. Right. So he ended up working out of that department instead. And he was the one that, for the most part, initiated the investigation into Whitewater and Madison Guaranty.

NICHOLS: Absolutely. And again, there's no connection between Jay Stevens and Jackson Stephens. Jackson Stephens is the wealthy man from Stephens investment firm out of Little Rock.

DONAHUE: Right. Um-hmm [understands]. Now what was Bill Clinton to gain, besides satisfying his corporate interests there in the state? Uh, let's talk about the direct connection that Bill Clinton... how he benefited through the Arkansas Development and Finance Authority.

NICHOLS: Well they, Bill Clinton and the power brokers, the Stephens, the "good ol' boy" political machine -- it's been around for over 100 years -- have been grooming Bill Clinton to run for President for 20 years.

The way he gained is, [for] every one of those loans, they had to make major campaign contributions. As a matter of fact, during the primary, when no other person could raise money, -- and I'm talking about Paul Tsongas, Kerry, I mean these are known entities -- Bill Clinton got $1.78 million of his campaign money from tentacles that are from ADFA. He got the balance of his money from tentacles that are the Stephens investment firm.

Now. When he entered the race as President, the day he entered, he had $10 million. And if you understand primary races, the man that wins in a primary is the person with money.

DONAHUE: He also used the same tentacles to acquire the Governorship.

NICHOLS: Absolutely. Now the problem that the American people have today, Tom, is this: When you deal with these people, you owe them. And now the American people "owe" those power brokers.

DONAHUE: We'll be right back. Larry Nichols is our special guest. Stay tuned.

(to be continued)

--------------------------<< Notes >>---------------------------- {1} Nichols' nervousness regarding the "California truck" that pulled into his driveway and sat there originates in the large number of apparent "suicides" and violent deaths of persons who have been connected with Bill Clinton. See, for example, "The Clinton Body Count" by Linda Thompson.
{2} "...who was hauling arms and supplies to the Contras during the early '80s..." That, in itself, was illegal. Putting aside for the moment the issue of bringing back cocaine, just smuggling arms to the Contras was a violation of the Boland amendment. {3} "...Webster Hubbell..." On April 19, 1993, the day of the "final solution" to the problem of the Branch Davidian standoff, Webster Hubbell was the highest ranking official in the FBI operations center and remained in phone contact with ground commanders throughout the siege. [Source: "The Massacre of the Branch Davidians" by the Committee for Waco Justice. PO Box 33037, Washington, DC 20033. Phones: (202) 986-1847, (202) 797- 9877.]
{4} The Arkansas-Chicago connection: Covered by Sherman Skolnick and included in a "Conspiracy for the Day -- Special Edition." Excerpts below:

A big cover-up with congressman Dan Rostenkowski of Chicago, arranged by the corrupt IRS, the Justice Department, and the White House.


The hundreds of millions of dollars per month from cocaine and such was reportedly funneled through Garfield Ridge Trust and Savings Bank of Chicago. The bank has been owned and operated by congressman Rostenkowski and his cronies, who have commented on the bank's reported criminality for some 20 years now.


{5} "...Mr. Stevens..." To my recollection, it is spelled "Stevens" and not "Stephens." I refer to Jay Stevens, an apparently real prosecutor who was investigating ADFA, etc. and was pulled off the case. The "poetic justice" that Donahue mentions is that Stevens wound up investigating Stephens.

I encourage distribution of "Conspiracy Nation."

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