Seraphina
Jedi Master
I found an interesting 2009 article about the Italian arrest of 2 Japanese nationals accused of attempting to smuggle 134.5 billion in US bonds into Switzerland...the bonds were confiscated leading to this lawsuit.
http://www.theundergroundinvestor.com/2009/06/the-strange-inconsistencies-behind-the-134-5-billion-bearer-bond-mystery/__
the AsiaIT article mentioned in previous article
http://www.asianews.it/news-en/US-government-securities-seized-from-Japanese-nationals,-not-clear-whether-real-or-fake-15456.html__
another article about the same incident that has a photo of the bonds. Apparently the same photo displayed on DC website
http://articles.businessinsider.com/2009-06-11/wall_street/29982351_1_finanza-government-securities-fake-bonds__
http://www.theundergroundinvestor.com/2009/06/the-strange-inconsistencies-behind-the-134-5-billion-bearer-bond-mystery/__
Here’s yet another huge financial story that has been virtually blacked out by the US financial media. Although on the surface, this story appears to be a non-event, if we consider some of the released facts about this case, you will understand why I consider it to be a huge story. On June 8th, the Asia News reported the following story:
“Italy’s financial police (Guardia italiana di Finanza) has seized US bonds worth US 134.5 billion from two Japanese nationals at Chiasso (40 km from Milan) on the border between Italy and Switzerland. They include 249 US Federal Reserve bonds worth US$ 500 million each, plus ten Kennedy bonds and other US government securities worth a billion dollars each. Italian authorities have not yet determined whether they are real or fake, but if they are real the attempt to take them into Switzerland would be the largest financial smuggling operation in history; if they are fake, the matter would be even more mind-boggling because the quality of the counterfeit work is such that the fake bonds are undistinguishable from the real ones.”
Here are just a few fascinating facts about this case (at least they are being reported as “facts” at this current time):
(1) Though the smugglers have been identified in the press as “Japanese nationals” there has yet to be any confirmation if the smugglers were indeed Japanese or of some other ethnicity. How difficult is it to confirm the ethnicity of the smugglers and why is this information being kept secret?
(2) According to a brief Bloomberg article regarding this story, the seized bearer bonds allegedly were dated as of 1934. Since bearer bonds in denominations of $500 million did not exist in 1934, the bonds were deduced as fake, though the Italian police are still waiting for a declaration regarding the bonds’ authenticity from the SEC. There is something truly “off” about this declaration. How can the quality of the forged bearer bonds be so meticulous that they “are undistinguishable from the real ones”, yet the people involved in the alleged forgery so ill-informed as to not date the bearer bonds with a more recent year that would not immediately identify them as fraudulent? How hard would it have been to date the bearer bonds with a more recent year? An equivalent analogy would be if an expert art forger meticulously re-created a Picasso oil canvass and then erroneously signed the work with the wrong artist’s name. This story just does not add up.
(3) The Bloomberg story also reported that there is no known existence of the alleged 10 Kennedy bonds that were discovered in the smuggler’s suitcases, each with a denomination of $1 billion. Again, this discovery defies any logical explanation. Why would expert counterfeiters make 249 bearer bonds with denominations of $500 million apiece, each undistinguishable from the real thing, and then instead of just making 20 more such bonds, decide to make 10 bonds in denominations of $1 billion a piece in a bearer bond design that has never existed? Were the alleged counterfeiters just too lazy to confirm if Kennedy bearer bonds were ever a legitimately issued security? Again, this story makes no sense.
(4) On March 30, 2009, the US Treasury Department announced that USD $134.5 billion remained in its Troubled Asset Relief Program (TARP). The stated amount of seized bearer bonds was $134.5 billion. Coincidence?
(5) The two well-dressed Japanese men opted to travel to Chiasso on a local train normally full of Italian manual laborers commuting to Switzerland. If they were really intent on successfully smuggling these bonds, counterfeit or real, why would they not take more care to select a travel route in which it was literally impossible for them not to stick out like two sore thumbs? Again, this part of the story defies all logic.
(6) The bearer bonds were discovered in a hidden briefcase compartment after a customs inspection. Again, if the bonds were indeed authentic and owned by a nation state, they could have been transported in a diplomatic pouch exempt from customs searches that would have guaranteed transport without detection.
Thus, all of the above irreconcilable and illogical points, other than the coincidence of the amount of the bearer bonds exactly matching the remaining TARP fund amount declared on March 30th, seem to indicate that not only were the seized bearer bonds counterfeit, but also that the smugglers were intent on being caught. .....
the AsiaIT article mentioned in previous article
http://www.asianews.it/news-en/US-government-securities-seized-from-Japanese-nationals,-not-clear-whether-real-or-fake-15456.html__
another article about the same incident that has a photo of the bonds. Apparently the same photo displayed on DC website
http://articles.businessinsider.com/2009-06-11/wall_street/29982351_1_finanza-government-securities-fake-bonds__