In 2002 The Toronto Star and Miami Herald newspapers carried full page articles announcing an $87 million fraud. The victims were investors from around the world including dozens of Canadians, Latin Americans, Europeans, and a former CIA employee and foreign leader named “Manny” These articles in fact were only disclosing what the SEC, FBI, and their masters allowed to be disclosed. The total amount of moneys under AFG management was between $120 million – $150 million. AUM was at least $120 million when I resigned my dual posts with the company in 1996 – perhaps 1 month before I contacted the FBI and spilled the proverbial “beans”.
There are 5 different frauds related to the AFG fiasco. Fraud No. 1 By far the biggest is the delayed and manipulated prosecution of a financial money laundering scheme that was made known to the FBI and Department of Justice in 1996, but took them 4 years to take action despite being provided “actionable evidence” and testimony by a former IRS agent in 1996. Thus between 1996 – 2002 hundreds of Canadian, American, and European investors were knowingly allowed to lose their money by the U.S. government, ironically by their own U.S. Department of Justice! Why?
This leads us to AFG Fraud No. 2… AFG was owned by a former U.S. Justice Department veteran official (Edward Myles Chism) and a former CIA economic analyst (David Siegel). The company was started with seed capital from General Manuel Noriega whose mistress, secretary, translator, and private banker (Teresita Tapia) became Mrs. Edward Myles Chism. The entire company was an elaborate front that became profitable as an afterthought.
Fraud No. 3 is the real crime that AFG was allowed to launder millions of dollars of corruption and drug moneys of corrupt officials and federal agents without fear of an IRS audit and with total impunity. In short they were doing the dirty work for people who had to make secrete pay-offs and purchases (i.e. Enron shares for politicians, bribes, drug proceeds, etc.) This is why the original and honest FBI case agent handling the matter (Maury) had to be transferred out of Miami to another post 700 miles away, and why DoJ took over the matter from the FBI in 1997 – to sit on it.
Fraud No. 4 is that the “missing” millions was never missing at all. I told the FBI, SEC, and OSC that I could take them to the money just as I offered Maury in 1996. I knew in exactly which off-shore accounts they would find in an in what account names/numbers. I repeatedly made this offer in 1996, 2001, and as late as 2006 (The monies were not removed until 2008 by Chism and Siegel and a third party). The problem was that if these moneys were officially found, too many high-level officials would be exposed as AFG clients having their funds co-mingled with Noriega’s and having to explain the source of all that unreported income. The FBI, SEC, and OSC verbally declined my offers of assistance and even my offer to take a polygraph test – but they would not say why.
Fraud No. 5 is the sweet deal made with Chism and Siegel to keep silent about all of the above. Most people accused of an $87 million dollar fraud would be looking at a 30 year prison sentence. Siegel never spent a single day behind bars and Edward agreed to cop a plea to simple income tax evasion and served 8 months at Eglin Air Force base which if visited, would make you think it’s a summer camp for overgrown spoiled kids. And… they got to keep their money – if Edward got out of Dodge. (He now resides in Panama living a “comfortable” life)
Eddie & Teresita Chism With “Mom” & Friend
My wife and I might also argue that a 6th fraud was perpetrated when I was rewarded for my “government assistance” with bogus criminal charges and death threats. I tried to write a book about it all only to have my book manuscripts stolen from me at gunpoint by agents without a warrant. My family and I sought refuge and sanctuary from the death threats in Canada. I thought the Canadian government would want to help their citizens recover the $43 million stolen from them with the assistance of the U.S. DoJ. I was told I was not welcome to stay in Canada even though my wife and kids are Canadian Citizens and we own a home there for years. Uncle Sam then directed Canada to detain me 10 months in “immigration detention” for no legitimate reason. I was not held with other immigration detainees in a local hotel however. No, they kept me in a 2 by 3 meter maximum security jail cell – even though I committed no crime. I was an embarrassing Bradley Manning so to speak.
AFG’s CFO David Siegel
BTW… The two biggest drug smugglers in Canadian history (Terry Nelson & Steve Finta) had an account with AFG. You can read about them here: http://www.operationmorningstar.org/Department_of_Justice_Cover-up_of%20Drug_Trafficking_In_Montana.html and here: http://www.copi.com/articles/Montana/971215.html
Atty. Stephen J. Finta
And even though RCMP and Immigration Canada officials said I was telling the truth, and even though two Canadian MPs offered to take up my cause, someone paid off my lawyer (who we since learned was arrested himself and was told to resign many years ago from the RCMP after shooting a young teen) to sabotage my case and let the U.S. extradite me without a single “charging document” that is required by law. Only when an Ontario Justice asked “Where are the charging documents?” did the Canadian courts smell the foul stench. I appealed directly to Harper with a 4 page letter and that only expedited my removal from Canada. U.S. Federal Judge Jack Weinstein dismissed my charges in New York and told me I was free to go home (Yes, there are a handful of honest judges left in the world, but I had to file my own Habeas Corpus pro-se after sitting another 90 days in an American jail with no arraignment, no indictment, and no court appearance. They just wanted me locked away – period.
When I returned to my family in Canada we thought the nightmare was over. MP Omar Alghabra who chaired the Immigration Commission for Canada’s Parliament assured me I was welcome to stay in Canada and apply for residency, and I did. But the U.S. squeezed Canada yet again and I was told “You have to make a voluntary departure or you will be physically deported” (despite having a letter from MP Alghabra saying I had every right to remain in Canada). I now post this report from the relative safety of China. I have not held my infant son nor hugged my wife and 14 year old son in 3 years. After arriving in China, the below message was delivered to our kitchen window in Mississauga, Ontario and I was visited twice in China and told – “If you ever set foot in North America you will die in jail cell and your wife and kids will die.”
Considering what happened to my associates Al Chalem and Canadian John Pierre Gonyou, I believe them. I did meet with an honest DEA Agent & RCMP Agent recently who said they know I told the truth and want to help me but… they have “orders” to stay away from my case. Dennis Harper failed me, all those Canadian investors, and the cause of genuine justice in the world. Meanwhile Eddie Chism is drinking Margaritas in Panama on his yacht. BTW… I did not author the below link but it will give you a taste of why Chism & Siegel got to keep all that money… http://www.dailykos.com/story/2007/08/24/375720/–I-ve-got-George-Bush-by-the-balls#