Land Scamming Bank Looting America All the Minerals Gas and Oil and Credit Papers To ….. America Looted Stupid

BEWARE OF THE GANGSTER BANKSTERS …. The Continuing Friggin Story

In Honor  of  Paul  Friggins

This Page is dedicated to the  COUNTLESS  Heroes  that have been  DRAINING  THE  SWAMP  for many  decades.   The STAGGERING ROBBERIES must be STOPPED…… Swamp Fox

FROM   1979   covering  the   1976  Murder  of  DON  BOLLES  ……   Can  You  Remember  all  the   ARKANSAS   and  TEXAS    Land  Swindles  ……  YUP  from  Maine  to  Florida to California and Hawaii  over to Alaska and back to Maine …..

In 1963 The 88th Congress of the United States Conducted Hearings on Land Swindles and the Financial Rackets associated with what Paul Friggins wrote about BEWARE OF THE RANCHERO RACKETEERS …….. Beware of Their Financiers, Lawyers, Title Companies and SERVICERS as well.

The  GREAT  MISSING  TRILLIONS   Adventures in  BUBBLE   Land.

The article as it originally appeared.

 

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May 21, 1979, Page 1 The New York Times Archives

PHOENIX — Law enforcement .officials believe that white‐collar swindlers based in Arizona are bilking Americans out of at least $100 million a year.

in a broad‐based investigation prompted by the 1976 murder of Don Bolles, a Phoenix reporter, Federal, state and local investigators say, they have uncovered a vast array of sophisticated fraud, much of it tied to organized crime based in Eastern cities. And, evidence collected here.suggests to them that the extent of similar criminal activity elsewhere in the country is probably much greater than previously believed.

“When a guy steals $1 million from bank, it makes the frontpages of all the papers,” said Lonzo McCracken, a Phoenix detective. “We’ve got people stealing hundreds of millions who never get any ‘publicity — and a lot of ‘em have never got caught.”

Hundreds of people, investigators say, have invested $50,000 or more in worthless gold mines after being brought to rural Arizona counties and shown ostensibly rich veins of gold. For the well‐acted charade, the flecks of gold were sprayed into the walls of a depleted mine by shotgun, one of the oldest tricks of the Stivindler’s trade.

Investigators assert that tens of thousands of people around the nation have spent hundreds of millions of dollars on diamonds sold over the telephone from 26 “boiler‐room” sales operations in Phoenix and suburban Scottsdale. While the diamonds are not worthless, the police say, they are worth only a small fraction of the value claimed by the persuasive telephone hucksters.

Investigators cite two reasons for the swindlers’ prospering these days: Many middle- and upper‐income Americans are trying to find an effective hedge against inflation, and more and more Americans, lifted by inflation into higher income tax brackets, are seeking tax shelters.

The investments they finally make, the authorities say, are often outright frauds.

Besides gold and diamond swindles, or “scams,” the officials say, at least a half dozen other major swindles have been linked to organized crime, among them the selling of limited partnerships in worthless oil, gas and coal leases; the selling of valueless franchises for anything from soft‐drink distributorships to phony arthritis and cancer cures; sales of fraudulent municipal bonds and commodity options, and loan swindles in which con men extract advance fees for finding loans that are never consummated.

– The common denominator of many swindles, Mr. McCracken said, “is to make a piece of paper look like it has value and then sell it, and some of these con men are very good at it.”

Stated Called a Laboratory

To some extent, officials say, Arizona has become a laboratory to determine how to deal with certain kinds of whitecollar crime; never before has so much effort been directed toward that type of crime in any one state.

After the murder of Mr. Bolles, who was among the first in the state to investigate land fraud and other commercial crime, the United States Justice Department established a special task force to investigate white‐collar crime in Arizona. Agents for the Federal Bureau of Investigation, postal inspectors and other specialists were on the force.

Meanwhile, the Phoenix Police Department and the state of Arizona expanded their investigations.

Land Fraud Has Subsided   (   Moved to other States  )

Under the pressures of those investigations, land fraud, the sale of worthless rural land and mortgages on the land, is generally acknowledged to have subsided. Before .then, Gov. Bruce Babbitt of Arizona estimated, Americans had been swindled out of at least $500 million in phony land sales in the state.

Ned Warren Sr., who, according to investigators, was sent here by New York underworld members in the late 1960’s to develop a land‐fraud operation, was sentenced last year to more than 50 years in prison. He was 64 years old when convicted on extortion and Federal fraud charges, and he publicly described himself as the “godfather” of land fraud.

Howard N. Woodall, 43, another figure in the land business, was convicted on a variety of fraud charges, and, as a Government witness, has provided testimony leading to the conviction of more than 30 people, including a municipal judge, prominent Denver financier, several land company executives, accountants and lawyers.

According to Michael Hawkins, the United States Attorney here, the heightened investigatioqs have resulted in indictments of 165 individuals and 16 corporations that had swindled more than 50,000 people out of some $350 million.

From Land to Gold and Oil    (   Remember  the   OKC   Murrah  Building  Bombing  and  Penn Square  Bank  /   Continental  Illinois  )

Despite those victories, officials say, white‐collar crime is still thriving and many participants in the land‐fraud business have now moved into swindles involving such things as diamonds, gold and oil and gas leases. “Some of these crimes are getting quite sophisticated,” Mr. Hawkins said.

Investigators here say that similar crimes have also become major industries in California, Colorado, Utah, Nevada, New Mexico, Florida and New York.

For the most part, they say, the sophisticated frauds have operated without effective law enforcement prosecution because police agencies, even the F.B.I. which has announced its intention of intensifying such investigations, have had too little training in dealing with white collar crime.

Investigators say that it is impossible to figure with any certainty the total loss’ to the public from frauds originating in Arizona, let alone the rest of the nation. “It’s beyond imagination,” said James . Kidd, a Phoenix detective who heads the investigation of diamond frauds. Based on examination of sales records of several companies here, he said, he would not be surprised “if the total loss was over $500 million.”

$100 Million a Year Estimated

Mr. Hawkins, the United States Attorney, said: “It’s my seasoned guess that totals $100 million or so a year. It could be more.”

Mr. McCracken, who is generally credited with having been the first Arizona lawman to investigate land fraud and related crimes, said the investigators have repeatedly linked persons involved in the frauds to Eastern organized crime groups.

But, he said, those persons generally used front men who paid a portion of their profits back to the crime organization, sometimes through a mob accountant with offices in Las Vegas and New York City.

Robert DeBusk, another Phoenix police fraud specialist, said that one currently popular scam directed by organized crime is to sell what he called “worthless” franchises for distribution of Products.

Peddling Distributorships

Distributorships are sold, he said, for wide range of products, such as postage stamp vending machines and cosmelics, and investors are promised an assured market for the products when none exists. This is one of many misrepresenta tions by salesmen for the distributors, Mr. DeBusk said.

One group of Arizona con men, another detective said, has made many thousands, of dollars selling distributorships for a purported cure for arthritis supposedly made of “cactus juice and water.” Detec‐1 tives say the product has no curative powers.

And in another popular scam here, Worthless gold and silver mines, investors’ losses may already have exceeded the total take from the state’s land frauds, said Duane Kingsbury, a specialist on frauds in rural Yavapai County.

The Gold Mine Scam

Typically, he said, investments are sought in corporations that claim large assets, including working gold mines. Potential investors are then brought to the mines to inspect the assets.

“These are completely exhausted mines — or they never had any gold to begin with,” Mr. Kingsbury said. But for the investors’ visit, employees are hired for a few days and a demonstration of working mine is staged.

Generally, he said, the swindlers set up laboratories whose seemingly unbiased chemists conduct tests and find the ore in the mines to be of high quality, a convincing touch.

Most often, Mr. Kingsbury said, the investors are high‐income achievers: company executives, owners of small- and medium‐sized businesses, physicians and other professional people.

“I have a tremendous amount of sympathy for these people,” he said. “Most are sophisticated people, but in dealing with the clever people involved in these operations, the average guy doesn’t have a chance.”

He said it was likely that many people

around the country now possess stock certificates showing their ownership inthe property and that such certificates had been used as collateral on large loans when they have no value at all.

“These are massive operations — one involved 300 people and 130 corporations,” Mr. Kingsbury continued. “The money involved is enormous.”

So are the efforts to avoid prosecution, Mr. Kingsbury said. He asserted that the con men in Arizona are seeking to purchase an island and establish their own nation, a sovereign country that would issue stamps, have a national bank to handle their financial dealings and serve as a base for frauds and fraudulent tax shelters.

Mr. Kingsbury said investigators had uncovered the attempts of one fugitive,

who allegedly was involved in gold mine swindles in his county, and confederates to buy a Mediterranean island near Crete or Big Ambergris Island, between Florida and the Dominican Republic.

Neither deal has been consummated, he said, but he suspected the effort to buy an island was still under way.

Other investigators said they had documented that the money to purchase the island had originated with organized‐crime members in the New York area; Mr. Kingsbury said he could not comment on that. “We’re heard that the mob is willing to pay up to 350 million for their own island,” one fraud investigator in Arizona said.

The Diamond Sales Companies

Detectives have attributed the origins of Arizona’s booming sales of overpriced diamonds to Howard S. McClintock, 61, who three years ago founded a telephone sales company called DeBeers Diamond Investment Ltd. The company had no connection to South Africa’s DeBeers Consolidated Mines, but the salesmen were vague about this lack of connection to the famous diamond mines, Mr. Kidd said.

The South African DeBeers concerns strongly and publicly disavows any connection. The police say, in fact, that the Arizona group illegally misrepresented itself.

DeBeers Diamond Investment suspended operation this spring after declaring bankruptcy, and no charges were ever filed. The police here credit Albert . J. Sitter, a reporter for The Arizona Republic, the paper for which Mr. Bolles worked, with writing articles that helped bring about the company’s closing.

Although DeBeers Investment has shut down, said Mr. Kidd, the Phoenix police department’s diamond specialist, many of its salesmen, impressed by the potential profits, have since formed their own boiler‐room sales operations equipped with leased long‐distance telephone lines and prize lists of high‐income investors around the country.

`Diamonds That Are Junk’

“There are 26 of them now,” he said, “and they are, without exception, boilerroom operations.

“They sell diamonds that are junk, but tell their customers that diamonds have appreciated 30 percent every year for the past 10 years and they’re going to make killing; they misrepresent ‘everything themselves, the quality of the diamonds, the investment potential, the prices they charge.

“What they do charge is $5,000 for $1,000 diamond,” Mr. Kidd said. “They say it will appreciate in value — they use the same pitch they used in land fraud but forget to say that it will probably take 10 years before the diamond is worth as much as they paid for it, if that.”

Similar diamond sales operations, he said, are flourishing in southern Florida, Illinois, Massachusetts and elsewhere.

Like other investigators, Mr. Kidd warns investors to be wary of any deal that seems too good to be true — because it probably isn’t.

But he said he sympathized with the swindlers’ victims because he had talked with enough of them to realize they were merely trying to beat inflation, “like all of us.”

“What these scam artists are really selling is a way to keep up and even stay ahead of inflation,” he said. “It’s a hell of an effective sales tool.”

United Press International

Ned Warren Sr

ClintonComey

 

The MASSIVE NON BORDER COLONIAS DEBACLE ADDED TO THE BORDER COLONIAS SCANDAL and Coupled to the Mega Land Scams Across America with the GIANT Mortgage Scams proves beyond all doubt LAND SWINDLE AND FINANCIAL FRAUDS are in fact what finances the SWAMP

ClintonKillers

 

NOTHING  SUBSIDED …. It Grew To Be The Largest Crime Spree in HUMAN HISTORY EVER

 

 

 

 

Mark Lombardi,  Gary Webb,  Brian Quig ,  Don  Bolles,  Paul  Friggins,   Lucy  Proctor,  Greg Collins,  Bobby  Harmon,   Peter  Brewton,   Steven Pizzo,   Mary  Fricker,   Gretchen Morgenson,  Linda  Thompson  and so  many  many  many  others   HAVE  BEEN  SWAMP  DRAINING  A  VERY  LONG  TIME.     Dedicated to all  those  Families  Swindled  and  the Honest  LEOS  and  REGULATORS   that  actually  did  Their  Jobs.    I  WILL  ADD  MANY  MORE  NAMES  in  the  Days  Ahead ……   There are  HUNDREDS Who  Contributed To This Story …..  Likely  THOUSANDS.

Judson  Witham  ……  From the  Catbird’s  Nest