September 11 Commission Report - Gnostic Liberation Front

3. Create credibility for the company by giving it the reserves large enough to
accommodate the appearance of being able to support large volume trade.
4. Install trusted management to establish credibility and respectability in the investment
market while watching over the company’s less reputable activity.
5. Create a ‘flood’ of small transactions to cover larger gold movements.
6. Scale up the gold laundering volume based on market limitations.
In reviewing recent history, there are familiar names (with a few mentioned elsewhere in
this report in relation to other activities) who appear to have undertaken exactly the six
steps outlined above, by creating and using Barrick Gold. Barrick is easily worthy of
suspicion, but note that this is an unproven hypothetical scenario:
• It has attracted investors and management who have a public history of being
associated with in illegal or potentially fraudulent activity;
• It has passed the smell test of the American judicial system that says it should go to
trial over gold price-fixing charges;
"GATA consultant Reginald H. Howe brought a similar federal lawsuit in Boston in 2000. It was
dismissed on jurisdictional grounds in 2002. Since then GATA has documented and publicized
evidence of manipulation of the gold market by Barrick, Morgan Chase, other bullion banks, and
the U.S. government." [Class-Action Suit Seeks Damages For Gold Investors from Barrick and
J.P. Morgan Chase, Business Wire, 11/27/2004]
• It demonstrated financial performance in accomplishingwhat no other gold or
derivatives trading company had been able to do: it has achieved financial success
that seems inexplicable to industry experts: unparalleled growth in volume, 62
straight financial quarters of profitability in the extremely risky futures commodity
market, and growth while all competitors are in decline or closing.
For the record, GATA’s charges have been neither upheld nor denied by the US
courts system, although the charges had enough merit to have survived requests from
the Barrick legal team to dismiss the suit.
A review of the six steps will demonstrate the involvement of various individuals and
companies in the creation of a potential gold laundering machine.
Step 1: Create a major gold mining and producing company.
In 1983, two investors of international renown, worked with Peter Munk to establish
Barrick.
"At its inception, Barrick’s principal investors were Saudi Arabians who had close ties to the Saudi
Intelligence Services, or to the CIA, or to both. Those Saudi Investors were Sheikh Kamal Adham, the
head of Saudi Intelligent Services at the same time that President Bush was head of the CIA; Adnan
Khashoggi, the first of the Saudi investors in Barrick; and Prince Nawaf bin Abdul Aziz, one of the
biggest of the initial shareholders in Barrick and now head of Saudi Intelligence Services. Sheikh
Adhamwas the CIA’s principal liaison to the Middle East and was so closely tied to the CIA that he
THE SEPTEMBER 11 COMMISSION REPORT Page 165