30,000 Demand Investigation of S&L Collapses, Contra Link
by Christic Institute
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30,000 DEMAND INVESTIGATION OF S&L COLLAPSES, CONTRA LINK
Christic Institute, Thursday, November 15, 1990
LOS ANGELES--The Christic Institute today delivered to Congressman Tony
Beilenson (D-Calif.) petitions from 30,000 citizens demanding a public
Congressional investigation of evidence that CIA-sponsored covert operatives
may have looted dozens of savings and loan institutions, funneling those
monies into the illegal contra resupply operation during the time aid to the
contras was outlawed by Congress.
Beilenson is chair of the powerful House Permanent Select Committee on
Intelligence, which oversees the operations of the Central Intelligence Agency
and other covert agencies.
``The Christic Institute has uncovered evidence that covert operatives and
drug traffickers exploited dozens of S&Ls to launder funds destined for the
illegal contra war,'' said Daniel P. Sheehan, the Institute's general counsel.
``This evidence suggests that the links among S&Ls, covert operatives and
organized crime can be traced to the `off-the-shelf enterprise' described by
Oliver North before the Iran-contra investigating committees.
``It appears that S&Ls may have made fraudulent loans in order to siphon money
to the contras at a time when Congress had cut off aid to the rebels.''
The Christic Institute also cited a series by Houston Post reporter Pete
Brewton which said that ``at least 27 failed financial institutions (25 S&Ls
and two banks) had links to CIA operatives or to organized crime figures with
links to the CIA.''
``The savings and loan collapse will cost taxpayers over $500 billion,'' said
Sara Nelson, the Institute's executive director. ``If it is true that S&L
money went to the contras, then the U.S. public was duped into paying the
bill for the contra war after Congress had outlawed contra aid. The evidence
pointing to a systematic fraud on the American people demands a thorough
investigation.''
Separate investigations have been conducted by the Institute, the Houston Post
and Congressman Frank Annunzio, chair of the House Banking subcommittee on
financial institutions. Each investigation has raised serious questions about
the relationships among failed S&Ls, the illegal contra resupply operation and
CIA operatives.
Christic Institute activists joined professional canvassers from the
Citizen/Labor Energy Coalition to gather the signatures. In one day of
canvassing in 22 cities, more than 30,000 people signed the Christic
Institute's petition demanding an investigation of the links between covert
operations and the S&L collapse.
``The response to this petition has been enormous,'' said Nelson, ``and shows
just how upset people are that Congress has failed to investigate the
intelligence connection to the S&L collapse. We hope that Congressman
Beilenson will take this message very seriously.''
In late 1988, during its ongoing investigation of the _Avirgan v. Hull_
lawsuit, the Christic Institute uncovered evidence that CIA-sponsored drug
traffickers may have used dozens of thrifts in several states to launder
cocaine profits destined for the illegal contra war in Nicaragua.
_Avirgan v. Hull_ was filed in May 1986 on behalf of journalists Tony Avirgan
and Martha Honey. Avirgan was one of more than 20 reporters injured in May
1984 when a terrorist bomb was detonated during a press conference in La
Penca, Nicaragua. Eight people were killed in the explosion, including an
American reporter for the Religious News Service.
Following investigations by Avirgan and Honey and by the Christic Institute, a
suit was filed charging that the bombing was planned and carried out by a
racketeering enterprise involved in drug trafficking, gun smuggling, money
laundering and assassination.
The suit is on appeal before the 11th Circuit Court in Atlanta. Oral
arguments in the appeal are expected to be heard in the coming weeks.
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