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Arkansas Development Finance Authority (view source)
Revision as of 01:47, October 19, 2016
, 01:47, October 19, 2016no edit summary
Hubbell and Ward's scheme, approved by Clinton, was ultimately viewed by the CIA as [[blackmail]] by Clinton [[crony|cronies]] threatening to expose the ongoing Contra-aid program run out of Arkansas, and was one factor, among many, forcing the shut down of the operation which eventually became known as [[Iran-Contra]].
Hubbell and Ward's scheme, approved by Clinton, was ultimately viewed by the CIA as [[blackmail]] by Clinton [[crony|cronies]] threatening to expose the ongoing Contra-aid program run out of Arkansas, and was one factor, among many, forcing the shut down of the operation which eventually became known as [[Iran-Contra]].
==How it worked==
One form of money laundering worked through front companies set up by bond broker [[Dan Lasater]]. These companies would deposit cash in banks such as [[Worthen Bank]], which would not fill out reporting forms. In return for this service, the companies would be obligated to buy bonds issued by the ADFA, and underwritten by Stephens Inc. Stephens would be compensated in the form of an investment banking fee.
The money from the bond issue, meanwhile, would go back to the same front companies. That is, in effect the companies bought their own bonds and paid Stephens a fee for the service.
The participation of the ADFA, a state agency, eliminated [[federal]] [[Securities and Exchange Commission]] scrutiny. ADFA formally issued and "guaranteed" the bonds, and thus collected a fee in the process. Some of these fees were translated into "loans" to the friends of the Bill Clinton.
==See also==
==See also==