Declaration of David Guyatt on IOR (Vatican Bank)

8/22/2019 Declaration of David Guyatt on IOR (Vatican Bank)

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-' I1i ri..tHOMAS DEWEY EASTON, ESQ.Califomia Srare Bar #t092t82782 NE Baroness Place

Bend, Oregon9770lTel: (541) 317-97tJ0

Fax:(541) 3 l7-9800

JONATHAN H. LEVY, ESQ.California State Bar #158032

Post Offrce Box 6080

Cincinnati OH45206Tel: (513) 528-0586

Fax:(513) 281-8338

Attorneys for Plaiutiffs and the Class

Of Counsel:

Ii LEE BOYD, ESQ.

California State Bar #189496

Pepperdine University Law School

24255 Pactfic Coast Highway

Malibu, California 90263Tel: (310) 317-7684

MTLOSH MTLENKOVICH, ESQ.5851 Pearl Road, Suite 302Parma Heights, Ohio 44130Tel: (440) 840-2770

DUNCAI\I MACDONALD, ESQ.Banister-at-Law (Middle Ternple)

Praga Tiradentes 97, Sala 301

Betim, MG CEP 3250I-970,BrazilTel: (01 l-55-31) 53 1-5681

Fax: (01 l-55-3 l) 53 l-3s60

EMIL ALPERIN, et al.

Plaintiffs,Y.

VATICAN BANK, a/k/a "INSTITUTE OFRELIGIOUS WOIIKS"; Et AI.

.,i' uit-u -5 61119:5\

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

NO. Cee-4e41 MMC (EDL)

DECLARATION OF DAVID GTIYATTIN SUPPORT OF'MOTION FORJURISDICTIONAL DISCOVERY

Defendants.

I, David Guyatt, declare as follows:

1. I am a Freelance investigative journalist working in the specialist fields of financial exposes,

military and intelligence issues, the global narcotics industry, advanced surreptitious anti-personnel

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0EC 1t 2000



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weapon systems, money laundering, organised crime activities and the black market in gold and othe

assets plundered in WWI l.

2. I have worked with the International Committee of the Red Cross (ICRC) Geneva

Switzerland, as an expert consultant on two weapon related projects. The first was the 1996 Montreau

symposium "The Medical Profession and The Effects of Weapons," where I prepared a paper entitle

"Some Aspects of Anti Personnel Electromagnetic Weapons." This essay later became the basis for

Swiss television documentary programme on Non Lethal Weapon Technologies broadcast in 1997

Following this I was invited to participate with an international team of experts for the ICRC's 199

SirUS Project, which sought to determine which weapons cause Superfluous Injury or Unnecessar

Suffering. The resulting project paper has, subsequently, been published in English, French, Spanish

Arabic and Russian and has become the benchmark for the implementation of new international law

governing the use of abhorrent weapons.

3. I have also written for the World Development Movement on my "insiders" knowledge o

international weapons financing gained during my years in international banking. Additionally, I wa

engaged as consultant for the two-part World In Action TV documentary that exposed Britain's weapo

trail to Indonesia, broadcast in April 1997.

4. I have also worked closely with a British TV producer on a number of documentary project

as well as having written numerous exclusive cover and feature articles for British and internationa

publications. This year saw the publication of my book TFIE SECRET GOLD TREATY that expose

the true story ofwhat happened to WW II gold and other plunder. This followed a four and a halfyea

investigation into the shadowy realm of the international black market.

5. Earlier, during a27-year career in international banking I have worked for three prestigiou

Wall Street investment banks, one Italian investment bank, a major British international bank and

number of "blue chip" stockbrokers.

6. My last banking position was Associate Director and Treasurer ofMidland Bank Aval Limited

the Forfaiting (Trade Finance) division ofMidland Bank International (now the Hong Kong & Shangha

Banking Group). My responsibilities included financing the banks ril billion annual turnover of it

investment and trading portfolios via daily involvement in the international money, foreign exchange an

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derivatives market. I was additionally responsible for trading the banks Fixed Income portfolio in th

international capitalmarkets and was charged with developing more versatile funding strategies for th

bank as a whole. I was a member of the Midland Bank Group International Trade Services (MBGITS

Treasury Committee.

7. I was headhunted to the foregoing position from Euromobiliare, a London based Italia

investment bank where I held the position ofManager. Responsibilities included operational managemen

of the firms Fixed Income Securities and listed international Equity trading.

8. Earlier, I was the Operations Manager/Comptroller ofBlyth Eastman Dillon Limited - the Fixe

Income trading arm ofthis Wall Street investment bank (now part ofthe Lehman Group). I was recruite

to this position at the personal invitation ofthe Managing Director with a remit to set-up operations an

establish best practice systems prior to the business launch ofthis newly established division in London

9. Preceding this I held a number of junior management positions in a small variety o

Stockbrokers and investment bank including White Weld & Co (now part of Credit Suisse First Bosto

Group), Kitcat & Aitken, Sheppards & Chase and John Prust & Co.

10. Based on bothmy knowledge of banking and the expertise I have gained during my in-dept

investigation into WW II plunder, I am struck by a number of comments made by Aw. Franco Grand

Stevens that I consider ill informed and inaccurate.

11. Aw. Grande Stevens contention that "it is the custom and practice of the IOR not to retai

records after ten years" (Item 2l), is frankly incredulous. I believe it is likely that Aw. Grande Steven

is confused in this regard and that this confusion probably results from his lack of personal experienc

and knowledge in the arena of banking administration and operations.

12. As a significant international banking presence, the IORwould almost certainly adhere to th

policy of safeguarding its records for longer periods than stated. To suggest that all classes of IOR

records older than ten years are automatically destroyed, frankly strikes me as preposterous.

13. I can think of no responsible bank that would adopt such a policy since the chance of future

legal action alone would leave it exposed. There are any number of additional reasons why banks would

seek to protect and retain records for longer periods of time. These, typically, would include importan

transactional records, serving and retired staffrecords and on-going insurance papers, for example. In

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addition, banks typically safeguard records in regard to dormant accounts and balances that can be and

often are later reactivated by authorised parties or legatees many years after they became inactive. Banks

also transact a wide range of products for customers and international clients that have both short and

long duration maturities.

14. The standard procedure is for old and out-of-use but important records to be stored and

warehoused and made accessible for retrieval, as and when required, but not arbitrarily destroyed. It i

not uncommon for important records to be microfilmed and kept in this media for very long periods o

time, indeed.

15. Moreover, Grande Stevens claims that the IOR is primarily an instrument of the Office of the

Secretary of State of the Vatican provides further weight to my argument. To destroy significant

important, controversial and sensitive classes of state papers that are integral to the Vatican's foreign and

international banking relationships, as the IOR documents must be considered by Aw. Grande Stevens

own definition, does not seem a remote possibility.

16. Classes of documents that, clearly, would not be destroyed within a l0-year period would

include IOR records of Vatican employee pension schemes (which the IOR is also responsible fo

administering as Aw. Grande Stevens explains in his declaration). This is one very obvious category

Nor do I think destruction would occur for that related to long term financial transactions that, typically

have amaturity ofup to 30 years, for example the so-called "Long" US TreasuryBond or similar ongoing

investments and securities. Likewise, it is common-place to retain records for long-term account holders

and corespondent banking relationship for far longer periods, if not indefinitely, Records regarding the

Vatican's gold bullion holdings and transactions would not be arbitrarily destroyed, again for obvious

reasons.

17 . I can also draw on considerable personal experience from the time I spent in banking to show

that thecustom adopted by the broadest spectrum of bankers is to retain records for long durations.

can also state that during my twelve plus years with Midland Bank Aval Limited, no transactional

customer, accounting, personnel records or other classes of records were destroyed. Nor was such an

idea ever contemplated, despite a number of changes of address when such issues tend to be raised. In

my experience bankers are inclined to hoard documents and records as a precaution against unforeseeable

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future events.

18. I have also taken the liberty of speaking with a former colleague who still works in bankin

in an executive role and who is knowledgeable in these matters. He confirmed my own view and added

that the general Golden Rule adhered to amongst London banks in regard to record keeping i

"materiality. " In other words, significant transactional records and other materially important classes o

papers are kept for as long as fifty years and longer. Extremely important records could be kept i

perpetuity.

19. I also spoke briefly with a representative of the Financial Services Authority, a governmen

empowered body responsible for banking oversight in the United Kingdom. This individual also

confirmed that "materiality" is the key issue.

20. Based on these considerations, I believe it much more likely that what Aw. Grande Stevens

actually meant to convey is that only some classes ofunimportant records relating to the lower-level and

tedious administrative aspects ofdaily banking operations are destroyed in the 1O-year time frame he ha

discussed. By nature and training, bankers are amongst the most prudent mortals to walk the earth and

I would, therefore, conclude that Aw. Grande Stevens' statement about a ten year period for the

destruction of banking records is mistaken and reflects his own lack of knowledge and experience in

banking practices and protocols.

21. Aw Grande Stevens depiction of the IOR as pietical in nature does not do it full justice

Missing from his declaration are numerous cases that reveal another far darker side to this internationa

banking institution. Over the past several decades, countless articles, books and numerous police

investigations have shownthat the IORoperates in a realmnormally inhabited by the confidence trickster

the racketeer and Mafia crime family. Indeed, it would not be stretching the point to say that the IOR

possesses an exceedingly tarnished reputation in international banking and law enforcement circles.

22.

Icovld go into great

detail about this side of the IOR if required, but do not wish to tire thepatience of the Court. However, I think it is necessary to briefly present some examples.

23.Theinvolvement of the IOR and its head, Bishop Paul Marcinkus, in handling counterfeit US

Bonds saga is one such case. This followed a 1973 investigation conducted by William Lynch, Chief o

the Organized Crime and Racketeering (OCR) section of the US Department of Justice. Lynch

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developed evidence showing that a delivery of counterfeit bonds with a face value of US$14.5 millio

courtesy of the New York Mafia, had been "ordered" by "someone with financial authority" within th

Vatican. Lynch and his team of OCR investigators secured evidence identifying that "someone" to b

none other than Bishop Paul Marcinkus. Moreover, the delivery ofthe US$14.5 million bonds was on

a down payrnent and that a whopping total of US$950 million in fake bonds had been ordered by the IO

at a discount to face value of $635 million. The evidence collected by Lynch included a letter issue

Vatican letterhead confirming that it wished to "buy the complete stock ofthe merchandise up to the su

of 950 million dollars." Prior to accepting full delivery, Bishop Marcinkus had apparently arranged fo

two trial deposits to be made in order to test the craftsmanship of fraudulent bonds. The first deposi

consisting of $1.5 million worth of the bonds, was made with Handelsbank, Zurich. The second te

deposit saw $2.5 million worth of bonds being placed with Banco di Roma. Acclaimed author Davi

Yallop, in his book IN GOD'S NAME, was told that Bishop Marcinkus and Mafia financier, Michel

Sindona had planned to use the fake bonds to gain control of Bastogi, a giant Italian conglomerate.

24. Another nefarious activity was the IOR's active assistance in helping wealthy Italian citizen

to evade tax by using IOR facilities to export considerable sums of Lira in nero (in the dark) to countrie

outside Italian jurisdiction. Bishop Marcinkus who was head of the IOR at that time was reported a

saying that the "system used by the IOR to export funds was the 'perfect crime,"' according to autho

Nick Tosches in his biography of Mafia financier Michele Sindona entitled POWER ON EARTH

published in 1986.

25. Then there was the case of the mysterious 1982 death of Italian banker, Roberto Calv

Chairman of Italy's largest private bank, Banco Ambrosiano. Calvi was known as "God's Banker" du

to his close involvement with the IOR. Numerous investigative journalists and writers have concluded

that Calvi was murdered because of his intimate knowledge of and association with suspect IOR

activities.

26. I have been told in the last few weeks that Calvi's death continues to excite interest by certai

British law enforcement authorities. Moreover, during a personal conversation with a very highly place

former merchant banker - who at one time held central banking authority and who personally knew

Roberto Calvi - I was informed of the reason for Calvi's murder. This individual explained that Calvi'

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bank was on the verge of collapse due to the disappearance of hundreds of millions of dollars via IO

banking conduits that were connected to Mafia tnoney laundering.

27. In desperation, Calvi had travelled to London to seek a financial rescue package from a sen

representative of Opus Dei - a right wing, shadowy, wealthy and extremely powerful Catholic sect whi

is widely regarded to engage in highly dubious activities. After reflecting on Calvi's presentation, sen

members of Opus Dei concluded that it was in their interests to see Banco Ambrosiano collapse as t

ensuing scandal would open the way for Opus Dei to take control of the IOR. By the account of t

individual I spoke with and, indeed, many other investigators who have proclaimed on this matter, th

is what actually happened. In this regard it is of some significance to learn that the present Pope is

known loyal supporter of Opus Dei.

28. The consequence ofthe Calvi affair, which has received intense journalistic scrutiny over t

years, was that the IOR agreed to pay $250 million to settle outstanding claims. I imagine this is wh

Aw. Grande Stevens means when he says in paragraph l9 of his declaration that the "Holy See has,

past occasions provided financial assistance for the IOR."

29. There are numerous informative books that detail the Calvi and Banco Ambrosiano affa

including Prof. N. T. Naylor's seminal work HOT MONEY as well David Yallop's, IN GOD'S NAM

and Nick Tosches POWER ON EARTH - amongst a number of others.

30. More recently, author Robert Hutchison in his exceptional book on Opus Dei, THEI

KINGDOM COME, first publishedinlgg7,has revealed that letters and other long since missing pape

from Roberto Calvi's black briefcase which accompanied him wherever he went and which disappeare

on the night of his death, had been purchased by Bishop Pavel Hnilica using cheques drawn on the IOR

One of the Calvi's letters acquired by Bishop Hnilica was a demand that Calvi be ".repaid the $1,00

million that [he] furnished at the express wish of the Vatican in favour of [Poland's] Solidari

[movement] . " Calvi's shocking revelation certainly cannot be judged to show that the IOR was engagin

in a pietical or altruistic act on the Vatican's behalf in this matter. Indeed, this must certainly rank as

covert political intervention in the affairs of a foreign sovereign state.

31. Moreover, in my own investigation into the black gold market and WWI I gold and othe

plunder, I have repeatedly come across powerful indications of Vatican involvement in WWI I plunde

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In my possession, for example, is a hand-written note by former Philippine President, Ferdinand Marcos

which refers to quantities of war gold under his control and which states in part that his ", trustee is the

Holy Roman Apostolic Catholic Church."

3 2. Additional information provided by knowledgeable sources, plus documents in my possession

and interviews I have conducted only bolster the conclusion that the Vatican, the IOR and the powerfu

right-wing Catholic sect, Opus Dei, continue to be deeply involved in matters pertaining to the recovery

and ownership of gold plundered during WWI l.

33. The foregoing examples cast long shadows over the IOR's mode and purpose of operation.

Some may argue that these are things of the past and that new controls have been put in place and that

executive changes in IOR personnel have now brought the bank into line with international standards in

regard to money laundering, racketeering and the penetration of organised crime into the banking

fraternity. I would argue that such an argument is unsustainable and cite the case of Martin Frankel to

show that the IOR seems set to continue to engage in dubious and sensitive practices shunned by

responsible international banks.

34. Martin Frankel, head of an investment firm located in Greenwich, Connecticut, was indicted

in 1999 on dozens of offences that included 20 counts of Wire Fraud, 13 counts of Money Laundering

plus additional counts of Racketeering (RICO), Securities Fraud and Conspiracy and has been accused

of siphoning offhundreds of millions of dollars from seven US insurance companies.

35. In a major investigative article published in August 1999, entitled "Washing Money In The

Holy See," FORTUNE MAGAZINE, said it had obtained hundreds of documents, private letters and

othermaterialthatimplicated "seniorVaticanofficials" connected to MartinFrankel's activities, including

the use of Vatican linked institutions to launder Frankel's money so that he could illegally gain control

of US insurance companies. One letter obtained by Fortune was from Monsignor Emilio Colagiovanni,

an emeritusjudge

ofthe Roman Rota, which stated that he (Colagiovanni) had: "talked this morning withSalerno [Bishop Francesco Salerno a leading Vatican economic official and now the secretary ofthe Holy

See's supreme court] and Piovano [Monsignor Gianfranco Piovano, an official ofthe Vatican's Secretariat

of Statel." The letter went on to say that that these two officials have reaffirmed the willingness of the

Holy See to erect a new foundation in the Vatican whose president should be Mr. David (a.k.a. Martin

DECLARATToN oF Dauo Guyerr - C99-494t MMC- p.8



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r(:tr,[n hinr hack t.r thir L,iriited Staten to stat.'d trisl.

3'7, Whal' llltt.y bs c.'f'aclditional irrtereitt ilr the stntenrvrrt rnArJr:r Lr)rlvjorrsignor Erniiio ()olagiovann

illld roYcalc.cl bv F'ortrine tltat0atty

lirnd or donation given to thc lvfonitc)r licclesiasticus Foundatiorr I()athQliu ittslittrttr.rrt lirrked to the IOR thnl wils trr trrr the arnrs tength entitv irr rrnnk.el's rllone), launrtelirr

artcl {i'arrtlrrlent tfnnsaotiotts'1" J]lls urnrier the pi'otection of lhe "r,ely srrict c:olrficlcntialit-v an<.1 secrer

liurv$" thal npplt, 10 fiu-y snt.itli lirrked to the'\/ntican. I\{.onsigntu' (lolagiovurlui wclrt o1 t6 reveal thn

"Only the Pclpe pet'.sonallv" oatr disckise details of an5, deposits or Conations,

38. llt tlre t:or.rrse of his declaration, Avv. Grande Steverrs pointedly clotails the I()R's abscnce o

tlir$ct plescrncg ot itt\'(th'enrutrt irr the $itnte o{'Culit'rrrnia orl,he t)nit.e,d States a$ Ar'r arglrprernt thfi l.JS lrr

cannut lrincl il. l-lorvc:r,t-"r. u,hat is rtot rrriltioned or liighlighterl in paragraphs 24 tlrrough 32, are tl.l0 t0lt'

bunking, relotiorxhilrs irr Cali{'rrlrria ol tlre Utrjt.ed Stittes. Since it illLtslr fi"onr tirne to [irnc,, cr{Icc:t an

r$(teivc: pfiynlents in US dollars in uu1, nlnllner of tJ$ clotlar dencurirrated transaclion$, tjlc IOR wi

c:ct-taitlly ltave n Con:r'spond*rit banking rela.tionship rvith at least one tlfi bank and trrrobnbly r;everal, a

is cttstotttitry, lt i-s nlso like!y to have a hankrng ielationship rvith the l-lrritecl States F'eclelnl R(:,qe.t-vc.

I deslare unclet penalty of pe{rrry uncler thc larvs of the State ot'Calilbrlria that the fprep,oiug

rrue rrnct correct ancr execureatr,iss-l -,roy or.M[1{s.- ,lfunfi., \ffi,", r,ri,.,

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Documents

Declaration of David Guyatt on IOR (Vatican Bank)