Conspiracy Nation -- Vol. 5 Num. 44

("Quid coniuratio est?")


I grabbed the following off alt.conspiracy. Note that the author does not mention his source for the information, as to whether it was published somewhere, or whatever. It also has a "to be continued", and I will try to grab further posts and forward them. The information, if accurate, does tend to support statements made by Sherman Skolnick.

Note that I neither necessarily agree nor disagree with either all or parts of the following. Persons mentioned are invited to send their rebuttals, of reasonable length, to for probable distribution.

-- Brian Francis Redman, Editor-in-Chief

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          Allegations Regarding Vince Foster, the NSA, and 
                 Banking Transactions Spying, Part III

                        by J. Orlin Grabbe

        The sequence of events leading the banking software
        company Systematics (ALLTEL Information Services) to
        hire a libel attorney to deny it was operating on behalf
        of the U.S. National Security Agency (NSA) began more
        than a decade ago.

        In the early 1980s, the War on (Some) Drugs and the War 
        on (Some) Terrorists lead to various U.S. government 
        initiatives to "follow the money."

        A Senate subcommittee recommended that the Treasury
        Department should work with the "Federal Reserve Board
        to develop a better understanding of the financial
        significance and use of currency repatriation data as
        well as information about foreign depositors' currency
        deposits." (U.S. Senate Permanent Subcommittee on 
        Investigations, Crime and Secrecy:  The Use of Offshore 
        Banks and Companies, U.S. Government Printing Office, 
        February 1983.)

        Over at the National Security Council, Norman A. Bailey, 
        an economist who understood the electronic flow of money
        through SWIFT, Fedwire, and CHIPS, urged the involve-
        ment of the National Security Agency (NSA), the Ft. 
        Meade-based Defense Department agency for signals 
        intelligence and communications security.  

        Bailey "confirms that within a few years the National
        Security Agency . . . had begun vacuuming up mountains
        of data by listening in on bank wire traffic.  It became a
        joint effort of several Western governments with the
        Israelis playing a leading role, since they were the main
        target of terrorism" (James R. Norman, "Fostergate").
        The NSA proceeded to jack into Fedwire, CHIPS, and
        Swift.  Doing so would be a priority if the aim was to
        monitor banking transactions.  But even while essential,
        this in itself would be of limited utility without further 
        information.  What is the use of monitoring interbank 
        transfers that are DES-encrypted?  And even if you break 
        the code, or have the keys, what remains is a money amount 
        transferred from one account number at one bank to another 
        account number at another bank. Who owns the accounts?

        One way of finding out was the CIA method:  to sneak agents 
        working under cover as computer hardware or software suppliers
        into computer rooms.  Sometimes a lowly computer programmer has 
        more access to banking information than does a senior executive, 
        so this method could enable one to piece together account names 
        and customer information with account numbers.  But such an 
        approach is not efficient.  Efficient spying implies access at 
        all times.

        The evidence indicates that at some point NSA made the logical
        decision that continual access meant the NSA had to become a 
        major provider of banking software.  

        James R. Norman, Senior Editor at Forbes--in an article  
        entitled "Fostergate," an article scheduled to appear in
        the May issue of Forbes, but killed at the last minute by
        Steve Forbes, apparently through the persuasive urging of
        Casper Weinberger, the former Defense Secretary who is
        Publisher Emeritus at Forbes--makes specific allegations
        about several companies which may have become part of such 
        an NSA operation, and about the role of Vincent Foster:

           "Forbes' sources say that since at least the late 1970s,
           Foster had been a silent, behind-the-scenes overseer on 
           behalf of the NSA for a small Little Rock, Ark., bank data
           processing company.  Its name was Systematics Inc., launched
           in 1967 [ 1968? ] and funded and controlled for most of its
           life by Arkansas billionaire Jackson Stephens, a 1946 Naval
           Academy graduate.  Foster was one of Stephens' trusted deal-  
           makers at the Rose Law Firm, where he was partner with
           Hillary Rodham Clinton, Webster Hubbell and William Kennedy
           (whose father was a Systematics director).  Hubbell also
           played an overseer role at Systematics for the NSA for
           some years according to intelligence sources.

           "Systematics has had close ties to the NSA and CIA ever 
           since its founding, sources say, as a money-shuffler for
           covert operations.  It is no secret that there were billions
           of dollars moving around in 'black' accounts--from buying
           and selling arms to the Contras, Iran, Iraq, Angola and 
           other countries to paying CIA operatives and laundering 
           money from clandestine CIA drug dealing.  Having taken  
           over the complete computer rooms in scores of small U.S.
           banks as an 'outsource' supplier of data processing,
           Systematics was in a unique position to manage that covert
           money flow.  Sources say the money was moved at the end of
           every day disguised as a routine bank-to-bank balancing
           transaction....    ....

           "Systematics' money-laundering role for the intelligence
           community might help explain why Jackson Stephens tried to
           take over Washington-based Financial General Bankshares in
           1978 on behalf of Arab backers of the Bank of Credit and
           Commerce International.  BCCI's links to global corruption
           and intelligence operations has been well documented, though
           many mysteries remain.

           "According to a lawsuit filed by the Securities and Exchange
           Commission, Stephens insisted on having then-tiny Systematics
           brought in to take over all the bank's data processing.  
           Representing Systematics in that 1978 SEC case:  Hillary
           Rodham Clinton and Webster Hubbell.  Stephens was blocked
           in that takeover.  But FGB, later renamed First American,
           ultimately fell under the domination of BCCI through Robert
           Altman and former Defense Sec. Clark Clifford.  According
           to a technician who worked at First American in Atlanta,
           Systematics became a key computer contractor there anyway.

           "In the 1980s Systematics' business boomed.  When it first
           sold stock to the public in 1983, revenues were $64 million.
           That had risen to $230 million by the time Stephens arranged
           Systematics' sale to Alltel Corp., a telephone holding 
           company which then moved its headquarters to Little Rock.
           Last year Systematics sales hit $861 million--a third of
           Alltel's total.  Stephens now owns more than 8% of Alltel
           and wields significant influence over the company. ....

           "Another curious company is Arkansas Systems, founded in
           1974 by Systematics employee and former U.S. Army 'analyst'
           John Chamberlain.  Located just down the road from 
           Systematics, Arkansas Systems specializes in computer
           systems for foreign wire transfer centers and central banks.
           Among its clients, Russia and China, according to Arkansas
           Systems president James K. Hendren, a physicist formerly 
           involved with the Safeguard anti-missile system.  Arkansas
           Systems was one of the first companies to receive funding 
           from the Arkansas Development Finance Authority, an agency
           created by then Gov. Bill Clinton that is now coming under
           congressional scrutiny.

           "What does Alltel have to say about all this?  'I've never
           heard anything so asinine in all my life,' steams Joe T.
           Ford, Alltel's chairman and the father of Jack Stephens'
           chief administrative aide."

        Charles O. Morgan, on the other hand, claims omniscience
        with respect to what did not happen with respect to

                        [to be continued]

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Coming to you from Illinois -- "The Land of Skolnick"