2 Japanese Men with $134 Billion in US Bonds Busted in Italy

by Jarrett Martineau | June 11, 2009 at 09:13 am
4605 views | 44 Recommendations | 17 comments

Two unidentified Japanese nationals have been detained in Italy after they were found carrying $134 billion in undeclared U.S. bonds.

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The men, who carried the bonds in a suitcase with a false bottom, were allegedly trying to enter Switzerland with the money.

No charges have yet been laid but it's hard not think of a good — and legal — reason that any two men, regardless of their nationality and identity, would be carrying more than a hundred billion dollars around in a suitcase.

Any thoughts?

Two Japanese nationals were detained by Italian financial police last week after trying to enter Switzerland with $134 billion worth of undeclared U.S. bonds, mostly Treasury bonds, an Italian daily said Wednesday. The Japanese consulate general in Milan confirmed that the detention had taken place and said it was trying to confirm with Italian authorities whether the two were indeed Japanese nationals and their identities.

According to the report in il Giornale, two unidentified Japanese in their 50s concealed the bonds, including 249 U.S. Treasury bonds each worth $500 million, in a suitcase with a false bottom that was searched by the Italian authorities June 3 when they were in Chiasso, at the border with Switzerland, about 50 kilometers north of Milan. The daily did not say on what charges they have been detained, but the two may have been detained on suspicion of attempting to take a large amount of securities out of Italy without declaring it because the paper said they had not declared the bonds.

Some bloggers have suggested that the bonds may in fact be counterfeit. But if they are real — Italy is in for a mini-financial windfall. Here's why:

The cute part of this is that if the certificates are real Italy just got a hell of a bonanza - their money laundering laws provide for a statutory 40% penalty for failure to declare instruments and cash in excess of $10,000 Euros, which means they'd garner a close-to-$40 billion dollar windfall.

That ought to help their budget problems!

Notice, by the way, that the US Media has totally ignored this story - even though the securities in question are allegedly US instruments.

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0
Barbara McPherson

There's got to be a big story here!  Where did all that money come from?

0
Roy C

Too bad they got caught! (Just kidding.)

Laundered money is the only thing that comes to mind. Money you wanted no electronic record of now that there are more rules even for the Swiss to follow.

2
134 Billion is more than Bill Gates owns

This is not just your normal money laundering, this amount of money only suggests to me that it is real, for a fraudulent attempt of this sort would be surely seen right through. Only states, and large ones at that, could have bonds in these denominations. See:

$134 Billion In U.S. Bonds found on 2 Japanese trying to get into Switzerland (Video):http://newsusa.myfeedportal.com/viewarticle.php?articleid=346

0
Exo_Basq

This makes absolutely no sense, except to say something VERY dirty is going on here.

With a sum of that amount of money (130+BILLION ), the parties involved must have serious resources. That means Government, or Government working closely with a "front" company/representative.

Why smuggle in billions of bonds if they are legal ?
There is only one logical answer.

They did not want anyone to know what or how much money these people had. So, why hide such a vast amount of money ?
Well the clue here is that it is USD. United States Dollars. The old greenback has been taking a severe beating lately, both financially and politically. Seems that the parties don't want anyone to know what they plan to do with this vast amount of money.

That means that don't have any plans in mind that will benefit Americans. It can only be extrememly damaging, thus the mainstream media whore's blackout on this subject.

Further information is needed. But this is an unbelievably huge amount of money to be transported in such a fashion.


0
Paschen

Hum, The Yakuza (ヤクザ or やくざ), also known as gokudō (極道) come to mind, maybe they made deal with the US and got some Bail out money due to the bad times that crime is facing or maybe they have been paid to take over NK.

3
hidflect

I may be able to shed some light on this with a story i heard from an ex-Yakuza guy a few years ago. Parts of it I may have mis-remembered but the basis of the story is allegedly true. Apparently after the war the Japanese royal family got themselves in a bit of a bind. Officially they don't own any property but the reality is they own vast swathes all over Japan.

A core group of nationalist royalists after the war didn't want to hand it all over to the Allied forces and MacCarthur fearing the worst and the Americans, after finding out, turned a blind eye to it in order to retain the trust of these powerful people who held sway over a large segment of public opinion. Also it was not surprising given the l;andscape at the time, this being before the CIA managed to sideline the Japanese Communist Party in favour of the LDP who have held power virtually unbroken to this day. It should be noted that the Emperor does not even own a wallet or possess any cash whatsoever. If he walked out of his Palace, he'd be virtually homeless. Everything is provided for but NO CASH...! ...and no property. this was a condition by the Americans to prevent another rise of the monarchists.

So, as the story goes, a convoluted series of trusts and funds were established to keep hold of these assets and their incomes to be managed in exclusive secrecy by a small group of old money families who are also largely Yakuza enterprises. The problem started somewhere in the 60's when banking laws were reformed/introduced that forced the profits from accounts to be declared or enfolded to the auditors office or other bureaucracy if not claimed every seven years. I think most countries have some variation of this seven year law applying to accounts that go untouched.

The real crisis was that this money had ballooned into a huge holding given that much of what was then backwater Tokyo had become prime realty. No-one who was entitled to the money (aka the Royal Family) could touch it and no-on dared skim any for their own benefit. It would've been a death sentence from the Yakuza who are acknowledged as being a rightist/royalist cult at heart. To this day in Tokyo the Right-Wing (Uyoku) "sound trucks" roar around Tokyo in drab green with wire mesh on the windows blaring marching music over Tannoy speakers bolted on the roof. Remember also that some of the first Prime Ministers of Japan were plainly Yakuza. Read HERE for more. I digress.

The decision was taken in secret (naturally) to disperse the funds' income to sympathetic parties every seven years. This was called "trimming the whale". You won't find any reference to it on Google, don't bother. As far as I know this is the first written account of it. This disbursement is in the Billions of dollars but in recent times, banking regulations have become tougher and tougher. Forcing the Yakuza (who are not the brightest fish in the pond, it must be said) to try ever more contorted ways to clear the money. I think this case is what you are seeing.

There's another book's worth more to this story but the twist to it was, I was told this tale while sitting in the bar of the Prince Hotel in Shinagawa. My source told me that this very Prince hotel (and all the other Prince hotels in Japan) were part of this asset structure. I laughed a little in (near total) disbelief and then looked down into my glass to take a sip and right then saw on the paper coaster underneath the discreet and fine watermark imprint of the chrysanthenum flower. I looked up at him in shock and he was smiling knowingly at me. We both knew that no company ever uses that flower mark because it is the Imperial signature belonging only to the Royal Family.

3
Girl from Imbanuma

Hi hidflect,

Your story is a very famous M Fund(M Shikin)/Golden Lilies(Ohgon no yuri) fraud talk based on the sort of urban legend here in Japan.

This Italian news reminds me of a Japanese institutional bank, Norinchukin.

Norinchukin is a Japans most kept secret money pit. The bank possess huge amount of various American bonds including Freddie Mac and Fannie Mae.


1
hidflect

Excellent GFI! I thank you for adding to my meager pile of knowledge!

3
sdsurfer

If these were in fact genuine bonds I would suspect that this money belongs to a government, possibly the Japanese government, given the size of the seizure.  I would also suspect that these two men worked for the Japanese government.  Furthermore I would suspect that they were doing this for the Japanese government, which wanted the sale of these bonds to be private.  I don't think the Japanese government wants to go on record as selling U.S. bonds because it would depress the U.S. bond market and cause losses in their remaining holdings.  I'm sure they wanted these bonds to be quietly sold, over time, without making any waves on the bond market.    

0
keflor

sdsurfer, if what you are saying is true, we should see relationship deteriorating between Japan and US.

Why does the owner want to change such a big amount of $US? Will the US$ sink?

1
Get Out Of American !!!

While pundits are lauding the merit of American dollars on public forums, the real bondholders are secretly dumping US treausury bonds like used toiletpaper ...

GET OUT WHILE YOU STILL CAN !! THE SKY IS FALLING !!

0
todd k meadows

TARP MONEY???? Stimulus check???

0
Carla H

The tarp money that hasn't been spent yet is suspiciously close to the amount of the bonds.  

 

 

2
Bertrand Picot

What really matters in this story is to keep on digging further....! I mean, this piece of news is presented to the public as if 2 guys crossed the border with some petty cash and are being questionned over where did they get the moany. We are talking of 134 BILLION DOLLARS !!!! Not half a mil, 134 BILLIONS....!!!!

Who has 134 billions ????????? And the press is saying the customs are quesitonning ???? Thank god they caught them...

So, since it is not by way of luck that they got arrested, it is a tip off. If so, imiagine one second that the mafiaS, as a whole, agree with the italian government a payment of 50 billion against a drop on all pending charges AND a clean bill of health on the balance of the monies.... The mafias contract a couple friends far far a field (on the Yakuza's payroll) and themselves tip off the customs... so that everyone is clear and italy get to survive thru the crisis and Berlusconi appears THE saviour for decades to come....!

I know it sounds TOO BIG, but think about it....it might not be that big !

0
Mark Dallas

Why every US news media deliberately silent on this concerning US issued secutiries?! Is this Bush and Cheiney's loot or US Republican party loot? 


Here every common readers from USA need to urge own local medias to report it in the USA!!!!

0
jimimac9

It's Obama's soft media who is failing to report 2 Japs moving $134b through Italy. If your Alsheimers permits recall, the media were brutally hard on the LAST administration.

Why do you have to always blame Bush/Cheney ? YOU IGNORANT  LIBERAL FOOL !

Be accountable and responsible for what happens during your administration.

Obama, Emnauel, Pelosi, Reid, Dodd and Bawney Fwank just stole TRILLIONS and nobody from this planet knows where it's gone !

0
Duckey

This is a very common occurence between two countries,the Japanese buy/or hold our bonds while we give them/not sell them arms,etc. to keep our bases on Okinawa,etc. open.

We also have several different business op's that go on on a daily basis,,,this keeps both our economies strong,,,do you remember a few years ago when the Japanese economy was in trouble?,,,what do you think we were doing to keep one of our most important trading partners solvent,after WWII,there were several conditions set between our two countries,,,these of course are not public,,,

Like one of the earlier comments,,,"Too bad they got caught!"

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Barbara McPherson
First Flagged at 9:21 AM, Jun 11, 2009 by Barbara McPherson
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