Category Archives: SPY Editorials

4-2-2016 Stolen bonds, the Gestapo and the KGB

Editor’s note: the following story has no relationship to softball, but is too long for Facebook.  It concerns people who play a different kind of hardball.

STOLEN BONDS, THE Gestapo, and the KGB

Among the many penalties imposed on the Weimar Republic were reparations sought by France and Germany for the costs of WWI. Lacking the millions in the Bundesbank sought by the Allies, the Bundesbank issued millions of dollars in bearer bonds, which were sold to investors in Germany and elsewhere in 1928. The offering raised enough money to pay the underwriting costs borne by J,P. Morgran.

In 30 years, the investors could redeem the bonds at face value. A major purchaser of the bonds was the bundesbank itself, bonds which lay in storage in Berlin throughout WWII.

The amount sought by Britain and France, who had not only carved up the oil bearing lands in the Middle East – British Petroleum and ELF were major negotiators at Versailles when the diplomats sought peace in our time (Chamberlain) but lay the groundwork for a second world war – were excessive and a major factor in the rise of the National Socialist Workers Party – Nazi.

This potboiler came to light in 1968 when investors began redeeming bearer bonds, which did not require proof of ownership.

But some bonds being submitted for redemption had supposedly never been issued by the bundesbank. The simmering pot boiled over when it was discovered that a number of bonds had been used as collateral for loans made by certain banks in Eastern Europe. When the Bundesbank balked, the creditors sued and the German courts ruled the Bundesbank had to pay because the bonds were made payable by the German government to bearer.

An investigation led German intelligence to conclude that the Soviet Army, when not raping every female from 6 to 90, and stealing all possible scientific and industrial machinery, had stolen all manner of financial instruments, including millions in bearer bonds. Investigaton revealed that some of the new entrepreneurs financing business in Eastern Europe were former KGB officers.

In due course, the West German government presented a demand in Moscow, The denials included “what Soviet Army; there is no longer a Soviet Union or Soviet army.”

Germany was able to thwart some of the East European deals and deny payment on some of the bonds.

The investigation also revealed that officials in Hitler’s Third Reich had also capitalized on the bonds. I have copies of three such bonds approved for payment with the Third Reich stamp. Given to me by a Bundesbank officials during a vodka-hued night at the old Adlon in Berlin, once a favorite of Nazis. I first heard the story from a retired official at his chateau in the south of France. And confirmed it through discussions with banking and intelligence people in Warsaw and Geneva, as well as Berlin and Moscow, where some discussions were held in an old dacha outside Moscow – you never know who is listening when meetings are held in ministry buildings, a Russian foreign service officer told me.


I thought of this matter and one other this past week reading in the Wall St Journal that the large US and European banks had declined to bid on bonds being offered by the Russian Cantral Bank. The publicly expressed concern was that the Putin government would use the funds to support actions in violation of US sanctions.

But I wondered whether some of this reluctance reflected a long-term reticence to get involved with Russian bonds.

There was an incident in the mid-90s when a Russian bank offered financial assistance to a South American country, which was widely hailed in that nation’s capitol – and by the US Ambassador. He was furious when I told bankers from that country that the Russian bank did not have the assets to perform. Our Ambassador flew to Washington, and stormed through the State Department accusing me of undermining the economy of a key ally. But, when I was challenged by the Under Secretary, I provided the secret financial data on the Russian bank. I refused to name my source but did inform the CIA of the identity of the Russian banking source who was known to them. We had one meeting at a hotel in McLean VA near CIA headquarters. We also met in the Lubyanka, KGB headquarters in Moscow. The Russians joked that I had been deeper inside the former Czarist prison than any American who was not in chains.


8-24-2015 Lacey Lee Baker Resigns


Lacy Lee Baker Resigns as NFCA Executive Director

August 24, 2015

After 21 years as the National Fastpitch Coaches Association (NFCA) Executive Director, Lacy Lee Baker has announced her resignation, effective August 31.


Baker, a 2014 NFCA Hall of Fame inductee, joined the Association in 1994 as its second full-time executive director, two years before a name change from the National Softball Coaches Association.


“I feel good about where the Association is now, and with an outstanding staff and continued board support, I’m sure the NFCA will continue to grow and succeed,” Baker said.  “I’m very proud of moving the Association to a permanent home in Louisville, Kentucky, and I feel with that stability, the NFCA and the sport can reach even greater heights. It has truly been my honor to serve fastpitch softball coaches all these years and be a small part of the tremendous growth the sport has achieved,” Baker continued.


Under her direction, the Association has expanded greatly both in services provided and membership numbers, going from a group of 1,372 members when she started, to the 3,800-plus members the NFCA serves today. The Association has grown from its founding as a college coaches’ organization to a group now that serves the needs of all coaches in the fastpitch community — from youth to high school to travel ball and college — as well as hundreds of affiliate members.


The annual NFCA National Convention has grown as well during her tenure, with last December’s edition in Las Vegas setting a record for both attendees (1,450) and vendors (130 companies).  She also started the NFCA’s monthly publication, Fastpitch Delivery, and was responsible for the NFCA’s first web site in the 1990s through the redesigned that launched this summer.


With the Board of Directors, she helped establish the Association’s written purpose: “To support fastpitch softball coaches in their quest for excellence, while uniting together to advance the sport we love,” and had been working at the time of her decision with the NFCA Board of Directors to spell out the Association’s vision for the future.


“Lacy Lee’s service and dedication to the NFCA has been unparalleled as she has invested her heart and soul into this organization for over two decades,” NFCA Board of Directors President Rhonda Revelle said. “She has been the driving force of positioning the NFCA where is stands today. Myself, and the NFCA Board of Directors are grateful and appreciative of Lacy Lee’s contributions to ‘advancing the sport we all love,’ and we wish her nothing but the very best in the next chapter of her life.”


Baker’s first job in sports was in 1978 as an assistant sports information director at San Diego State. In 1980, she became Director of Publications at Stanford University and she joined the staff of the Los Angeles Olympic Organizing Committee in 1983 as the project manager and editor of Olympic Record, the daily newspaper for the 1984 Olympic Games.


In 1985, she joined the staff at the NCAA, working first in publications, before moving on to assistant and associate director of championship positions, where she worked with the NCAA’s three softball championships and as the liaison to the National Softball Coaches Association.


Her husband, Jay Miller, a 2008 NFCA Hall of Fame inductee, is the pitching coach at the University of Louisville and their daughter, Nikki Miller, is an assistant coach at Wittenberg University

Spy Note: Neither the press nor Revelle indicated what that next chapter might be, or why the short time window.

7-4-2015 Signers of Declaration of Independence



Gary Hildrith

Have you ever wondered what happened to the fifty-six men who signed the Declaration of Independence? This is the price they paid:

Five signers were captured by the British as traitors, and tortured before they died. Twelve had their homes ransacked and burned. Two lost their sons in the revolutionary army, another had two sons captured. Nine of the fifty-six fought and died from wounds or hardships resulting from the Revolutionary War.

These men signed, and they pledged their lives, their fortunes, and their sacred honor!

What kind of men were they? Twenty-four were lawyers and jurists. Eleven were merchants. Nine were farmers and large plantation owners. All were men of means, well educated. But they signed the Declaration of Independence knowing full well that the penalty could be death if they were captured.

Carter Braxton of Virginia, a wealthy planter and trader, saw his ships swept from the seas by the British navy. He sold his home and properties to pay his debts, and died in rags.

Thomas McKeam was so hounded by the British that he was forced to move his family almost constantly. He served in the Congress without pay, and his family was kept in hiding. His possessions were taken from him, and poverty was his reward.

Vandals or soldiers or both, looted the properties of Ellery, Clymer, Hall, Walton, Gwinnett, Heyward, Ruttledge, and Middleton.

Perhaps one of the most inspiring examples of “undaunted resolution” was at the Battle of Yorktown. Thomas Nelson, Jr. was returning from Philadelphia to become Governor of Virginia and joined General Washington just outside of Yorktown. He then noted that British General Cornwallis had taken over the Nelson home for his headqurt, but that the patriot’s were directing their artillery fire all over the town except for the vicinity of his own beautiful home. Nelson asked why they were not firing in that direction, and the soldiers replied, “Out of respect to you, Sir.” Nelson quietly urged General Washington to open fire, and stepping forward to the nearest cannon, aimed at his own house and fired. The other guns joined in, and the Nelson home was destroyed. Nelson died bankrupt.

Francis Lewis’s Long Island home was looted and gutted, his home and properties destroyed. His wife was thrown into a damp dark prison cell without a bed. Health ruined, Mrs. Lewis soon died from the effects of the confinement. The Lewis’s son would later die in British captivity, also.

“Honest John” Hart was driven from his wife’s bedside as she lay dying, when British and Hessian troops invaded New Jersey just months after he signed the Declaration. Their thirteen children fled for their lives. His fields and his grist mill were laid to waste. All winter, and for more than a year, Hart lived in forests and caves, finally returning home to find his wife dead, his chidrvanished and his farm destroyed. Rebuilding proved too be too great a task. A few weeks later, by the spring of 1779, John Hart was dead from exhaustion and a broken heart.

Norris and Livingston suffered similar fates.

New Jersey’s Richard Stockton, after rescuing his wife and children from advancing British troops, was betrayed by a loyalist, imprisoned, beaten and nearly starved. He returned an invalid to find his home gutted, and his library and papers burned. He, too, never recovered, dying in 1781 a broken man.

William Ellery of Rhode Island, who marveled that he had seen only “undaunted resolution” in the faces of his co-signers, also had his home burned.

Only days after Lewis Morris of New York signed the Declaration, British troops ravaged his 2,000-acre estate, butchered his cattle and drove his family off the land. Three of Morris’ sons fought the British.

When the British seized the New York houses of the wealthy Philip Livingston, he sold off everything else, and gave the money to the Revolution. He died in 1778.

Arthur Middleton, Edward Rutledge and Thomas Heyward Jr. went home to South Carolin tight. In the British invasion of the South, Heyward was wounded and all three were captured. As he rotted on a prison ship in St. Augustine, Heyward’s plantation was raided, buildings burned, and his wife, who witnessed it all, died. Other Southern signers suffered the same general fate.

Among the first to sign had been John Hancock, who wrote in big, bold script so George III “could read my name without spectacles and could now double his reward for 500 pounds for my head.” If the cause of the revolution commands it, roared Hancock, “Burn Boston and make John Hancock a beggar!”

Here were men who believed in a cause far beyond themselves.

Such were the stories and sacrifices of the America revolution. These were not wild eyed, rabble-rousing ruffians. They were soft-spoken men of means and education. They had security, but they valued liberty more. Standing tall, straight, and unwavering, they pledged: “For the support of this Declaration, with firm reliance on the protection of the Divine Providence, we mutually pledge to each other, our lives, our fortunes, and our sacred honor.”

3-1-2015 Relevant Notes from Germany


Richard von Weizsäcker, 94, Dies: First President of Reunited .Germany..

Richard von Weizsäcker, the patrician first president of the reunited Germany and a guardian of his nation’s moral conscience, has died. He transformed what had been a mostly ceremonial office into a political platform from which he helped lead German reunification while urging Germans to confront their Nazi past. He made several trips to Israel where his efforts at restitution and recognition were warmly welcomed. Weizsacker planted a tree in Jerusalem’s memorial garden. (So did the Hesse family) His comments about leaders swaying opinion and converting Germans, especially youth, are relevamt today as the world copes with youth by the thousands joining ISIS.

Mein Kampf

Incredible: a publisher plans to reprint Hitler’s Mein Kampf. Hopefully, the German courts will block publication. The Charlie Hebdo murders prompted global outcry defending freedom of speech, no matter how hateful. There must be limits!


Buchenwald and Dachau

Buchenwald, a Nazi concentration camp for political prisoners, was established outside the city of Weimar, Germany in July 1937. Unlike other camps that were extermination sites, Buchenwald was a source of slave labor. Now Buchwald and Dachau, which began as an internment center for political prisoners, are slated to be used by the Interior Ministry to house migrants and persons seeking political asylum, who have been flooding into Germany which does not have housing available for the large numbers who must be screened, etc. German officials say the camps have been modernized and the new arrivals will not be housed in former slave quarters. The decision to use these and other camps applies only to those within Germany and does not involve the many extermination camps in Poland, eg, Auschwitz.



2-25-2015 Clinton, Holder and Marc Rich

Eric Holder and Marc Rich
Spy intended to post this article on our alternative web site lifeonspy but it did not publish.


In 1995, I was passing through Moscow’s Sheremtyevo airport and after clearing immigration, I looked for the Embassy driver — and saw a limo driver discretely holding a small sign “Marc Rich.”


I have many complaints about Eric Holder, most flagrantly his waving the race card before local law enforcement had conducted their investigations of the Martin and Brown shootings.  Obviously, Holder was doing the bidding of his boss, Obama, whose umbilical cord to his black Muslim roots has never severed.  Similarly, this duo inserted the FBI into the shooting deaths of three Muslim students in Virginia, calling the shootings a hate crime  a hate crime while local police were doubting the cause.


Ironically, while Rich was alleged to have been involved in many nefarious dealings, I discovered while in Moscow he was no longer a person of interest.  But, when I told the FBI deputy director that I had seen Rich, he incredulously asked if I had followed him.  The next day, when I was meeting with the KGB at Lemontovo, a Colonel asked if I had followed Rich.  They suspected Rich was involved in black market sales of oil, and may have had a hand in money laundering.  (Much of the money laundering in Eastern Europe involved former KGB officers using stolen bank documents seized by the Red Army when Berlin collapsed; I have some of the bearer bonds bearing Third Reich stamps.)


A review of the Clinton-Holder-Rich affairs by Justin Peters in Slate.


“Marc Rich, the man who got away with it, died last week, and I would be remiss if I let his death pass without comment. Rich became internationally notorious in 2001, when, as a fugitive from justice, he was pardoned by Bill Clinton in the last hours of his administration. What many don’t recall is that Attorney General Eric Holder, who was then a deputy attorney general, was instrumental in securing Rich’s pardon.

Rich was a pioneering commodities trader who made billions dealing in oil and other goods. He had a habit of dealing with nations with which trade was embargoed, like Iran, Libya, Cuba, and apartheid South Africa. Rich also had a habit of not paying his taxes, to the point where one observer said that “Marc Rich is to asset concealment what Babe Ruth was to baseball.” The United States indicted Rich in 1983, hitting him with charges—tax evasion, wire fraud, racketeering, trading with the enemy—that could’ve brought life in prison. Rich fled the country.

He remained at large for almost 20 years. (Rich’s obituaries have said that, for much of that time, he was on the FBI 10 Most Wanted List, a claim that I have not been able to independently verify. A Lexis-Nexis database search reveals nothing; a call to the FBI’s press office was not fruitful.) Rich lived in a big house in Switzerland and spent lots of money trying to make the charges against him go away, giving money to American politicians and to various Israeli causes, motivated at least partly in the latter case by the hope that officials in Israel might petition the United States on his behalf.

Finally, in 2000, he saw some return on his efforts. Eric Holder was the key man. As deputy AG, Holder was in charge of advising the president on the merits of various petitions for pardon. Jack Quinn, a lawyer for Rich, approached Holder about clemency for his client. Quinn was a confidant of Al Gore, then a candidate for president; Holder had ambitions of being named attorney general in a Gore administration. A report from the House Committee on Government Reform on the Rich debacle later concluded that Holder must have decided that cooperating in the Rich matter could pay dividends later on.

Rich was an active fugitive, a man who had used his money to evade the law, and presidents do not generally pardon people like that. What’s more, the Justice Department opposed the pardon—or would’ve, if it had known about it. But Holder and Quinn did an end-around, bringing the pardon to Clinton directly and avoiding any chance that Justice colleagues might give negative input. As the House Government Reform Committee report later put it, “Holder failed to inform the prosecutors under him that the Rich pardon was under consideration, despite the fact that he was aware of the pardon effort for almost two months before it was granted.”

On Jan. 19, 2001, Holder advised the White House that he was “neutral leaning favorable” on pardoning Rich. But the U.S. pardon attorney, Roger Adams, needed to sign the pardon, too, and a background check needed to be done. The White House waited to contact Adams until slightly after midnight on Jan. 20, hours before Clinton would leave office. Here’s how a recent American Thinker piece described the scene:

Adams would be required to sign the pardons, and when he was informed by White House staff that night, a perfunctory check was done. Adams was stunned to learn that Rich and [Rich’s partner Pincus] Green were both fugitives. He tracked down Holder and called him at his home at 1 a.m. that morning.

Adams informed Holder that Clinton was giving serious consideration to pardoning the two fugitives. Holder told Adams that he was aware of that fact, and the conversation abruptly ended.

Later that day, Rich’s pardon went through.