declaration of david guyatt on ior (vatican bank)
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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
DEcLARATToN oF DAvTD Gwer - C99-4941MMC- p.l
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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
DEcLARArroN oF DAVrD Guyerr - C99-4941 MMC- p.
8/22/2019 Declaration of David Guyatt on IOR (Vatican Bank)
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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
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l)aVicl " '{c(icuclitt$ lo l:ot'tu11(t, this/srJti.ngu,rrtrl'rvas latel rrrodiliecl tcJ r:reiltg ar) trrrl.rs lerrgtlt ,,laycr
itlFulatitrrt" thitl t','errl tiF\ptur)ntl:i tl'esignecl ttr 1:rr'otcr'( (lrr \/irl.iutur,s irrtugrirl,
'l(i lu itilY c'\'(i?l'll, tlllc:e N'rr, F'rntthol's nctivitic.q carlre r.rrrdcrl i,rtcr),sc s.cr-rrliuy irr N{ay lgg9. lv
F ratrke! flecl t o ltott:c: irt I ptivut e j*t r.r'it.lr n $ I () millirn lroar rl irr rliurrrorrtls Ile lntcr rrnvc]lsd to ciermar
rvltel'9l,lr$.l[rt}rQri1ie*u|tiItt'tttcl5,t.''...,''*u|tirtrartiltr,Ilr:rcltcisrrc,rt,Lc,|)te5tillstj.xtludititlrrJrt.trt:t:c|illgslt
r(:tr,[n hinr hack t.r thir L,iriited Staten to stat.'d trisl.
3'7, Whal' llltt.y bs c.'f'aclditional irrtereitt ilr the stntenrvrrt rnArJr:r Lr)rlvjorrsignor Erniiio ()olagiovann
illld roYcalc.cl bv F'ortrine tltat0atty
lirnd or donation given to thc lvfonitc)r licclesiasticus Foundatiorr I()athQliu ittslittrttr.rrt lirrked to the IOR thnl wils trr trrr the arnrs tength entitv irr rrnnk.el's rllone), launrtelirr
artcl {i'arrtlrrlent tfnnsaotiotts'1" J]lls urnrier the pi'otection of lhe "r,ely srrict c:olrficlcntialit-v an<.1 secrer
liurv$" 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,.,
'!(rs"r';rn 1 R\ ),Il I4ffitt