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swiftly without concessions from the Chinese. Last June,
infamous Nugan-Hand Bank. shareholder, according to Harkeu™s proxy statement. The
Official Australian government investigations during proxy also states that IMR “and its affiliates” are major in response to congressional pressure, Bush imposed
sanctions against China, including a ban on the sale or
the late 1970s and early 1980s revealed Nugan-Hand™s shareholders in two Harken subsidiaries, E-Z Serve
export of equipment with possible military uses. Last
involvement in drug-money laundering and ties to the Corp. and Texas Power Corp. In 1989, E-Z Serve sold
fall, Congress enacted a provision that specifically
U.S. military and intelligence community. 80 percent of its Hawaiian subsidiary, Aloha Petroleum,
Ltd., to IMR for $12 million. IMR later sold its interest banned the export of satellites to China unless the
Nugan-Hand co-owner and Vice-Chairman, Michael
in Aloha.
Jon Hand, a Green Beret war hero and CIA operative, President granted a waiver “in the national interest”.
Scowcroft™s trip to Beijing was the latest and most
Alan Quasha also sits on the board of Frontier Oil
was also a “pal of dope-dealers and of retired and not-
so-retired military intelligence officials”, according to and Refining Co. of Denver, along with Harken President dramatic step by the Administration to ease the impact
Tke Crimes bf Patriots, by former Wall Street Journal Mike1 Faulkner. Like the Richemont Group, Frontier™& of the restrictions. If Bush approves exporting the
headed by Anton Rupert. Last October, Hat-ken. and Hughes satellites to China, it could heighten the
reporter Jonathan Kwitny.
In 1977, the Australian Narcotics Bureau released a Frontier announced that E-Z Serve would purchase controversy in Congress.
Los Angeles-based Hughes Aircraft has been
report detailing Nugan-Hand™s involvement in a drug- Frontier Oil Corp., a subsidiary of Frontier Oil and
seeking final approval from the White House to sell two
smuggling network that “exported some $3 billion Refining. The Frontier group later backed out of the
deal. of its communications satellites+ne to an Australian
[Australian] worth of heroin from Bangkok prior to June
1976”, according to Australia™s Sunday Pictorial. Harken is clearly not a typical small oil company. state-owned company called Ausat and the other to a
Moreover, according to a 1984 article in Mother Jones, Hong Kong consortium called Asiasat. Both satellites
Its allure to some of the world™s richest and most
would be launched on Chinese rockets in China™s
former CIA officers and Iran-Contra figures Theodore powerful men and ability to secure potentially valuable
Sichuan Province. The satellites are designed to provide
Shackley and Thomas Clines-along with their concessions perplex even veteran industry analysts. The
vital communication links across Asia and Australia and
subordinate Edwin Wilson (who is currently imprisoned company™s complex web of financial and family
for selling plastic explosives to Libya)-used Nugan- relationships is considered extraordinary. would be a boon to the joint venture between the
Meanwhile, a company that employs President Chinese government and Asset Management, an
Hand funds for a variety of covert operations, including
international financial-services company.
the destabilization of the Australian government in 1975. Bush™s brother Prescott as a consultant stands to benefit
Company records list Prescott Bush as a member of
In April 1980, as Australian government if the President clears the way for the shipment of two
satellites to China by the Hughes Aircraft Co. U.S. its senior advisory board, which includes retired Admiral
investigators closed in on Nugan-Hand, the co-
JANUARY lo,2000 CONTACT: THE PHOENIX JOURNAL Page 17

Elmo R. Zumwalt, former Chief of the Navy. An from 1987 to 1989, couldn™t recall making such a phone millions of dollars to the company headed by Miguel
executive vice president of Prescott Bush & Co. also™is call. Neither could his top aides when questioned by the Recarey, Jr., a Cuban-American who had business
a director of Asset Management, according to the staff of the House Banking Committee. The call spared connections to the late mob boss Santo Trafficante, Jr.
records. the Republicans the political embarrassment of an Recarey™s company, International Medical Centers,
In addition to Bush™s role as an adviser, Asset election-eve shutdown of an S&L tie to the White House. Inc. (IMC), the nation™s largest health-maintenance
Management Executive Vice President Stanley B. The financial affairs of the close-knit Bush family organization (HMO), eventually collapsed, and federal
Scheinman said the President™s brother is a paid are politics mixed with business-commercial and investigators are still trying to figure out what happened
consultant who helps the firm in Asia, including intelligence. Investigations of the business relationships to the $1 billion in federal funds the firm received.
arranging a recent $5 million investment in the company of Neil and Jeb Bush-and of the oil-business of George Recarey fled the country in 1987 amid federal labor-
by a Japanese firm. “He was instrumental in assisting us Bush before he went into politics fulltime in 1966- racketeering, bribery and wiretapping charges. An
and introducing us to the Japanese investors, “said produce connections to the world of intelligence. unknown number of Medicare patients were denied
National Thrift News, the bible of the S&L industry,
Scheinman. services because of the misuse of federal funds.
Last September, Prescott Bush swung through Asia reported in February 1989, in a story curiously ignored After the collapse of International Medical Centers,
and Beijing, meeting with Chinese officials and potential by the national media, that a former regulator at the press reports linked the HMO to the Contra supply
At that time, he told the Wall
investment partners. Federal Home Loan Board of Topeka (which had network. Allegations were made that Medicare funds
Stfeet Journal that he was representing Asset supervisory authority over the Denver thrift where Neil had been diverted from Recarey™s operation to the
Management on several projects, including the satellite- Bush was a director) said “political considerations” kept Contras, at the expense of elderly Floridians.
linked network inside China. He did not mention then regulators from scrutinizing Silverado because it involved Federal officials called such allegations groundless,
that Asset Management stood to gain from the pending financial maneuvering with two major donors to the but it was well known that Jeb Bush was a Contra
supporter. According to an investigation by the Wall
export of satellites to China. He did say, however, that Republican Party.
Street Journal, Contra soldiers were actually treated at
he had not benefited from his brother™s position. One of Silverado™s big borrowers, Larry Mizel,
˜There™s no conflict of interest,” he said. “This is raised $1 million for the GOP at the 1986 Colorado IMC medical group facilities. At that time a 50-50 rule
something that has been going on for years.” But, he luncheon attended by President Reagan. Another major limiting Medicare patients went into effect.
conceded, “It doesn™t hurt that my brother is the Meanwhile, Jeb Bush had a deal in the works. Jeb
borrower, Kenneth Good, contributed $100,000 to
President of the United States.” President Bush™s campaign in 1988. This is the same had been engaged by Recarey™s IMC to relocate its
Asset Management™s joint venture with the Chinese Kenneth Good who made the younger Bush a $100,000 Miami headquarters. Jeb™s firm, Bush Realty, stood to
government calls for a computer-based communications “non-repayable” loan. collect a quarter of a million dollars.
network linking 2,246 offices of scientists, physicians, The retired federal regulator, James Moroney, said But IMC was having trouble. Almost from the day
engineers and other professionals within China to the that the connections of “politically powerful people” with it opened, patients, doctors and hospitals had been
outside world, according to Richard Wall who negotiated Silverado led federal examiners to adopt “a different complaining that IMC wasn™t paying its bills. It was
the deal. He said existing technology could link many regulatory methodology that amounted to preferential getting bad publicity, including allegations of the
offices within China, but he said a satellite is required treatment” in allowing questionable loans to go company™s insolvency.
for the vital connection to research centers and unchallenged. At the time, Jeb Bush was Dade County Republican
universities around the world. Intelligence activities surround four of the five major Party Chairman, not a government official. The Florida
Wall said that China has a domestic satellite in borrowers from Neil Bush™s Silverado. Pete Brewton of GOP had floated his name as a potential, congressional
the Houston Post reported CIA and organized crime
space that could handle the outside link but he candidate, but Jeb said he was more interested in making
acknowledged that the Hughes satellites ,would offer a big bucks. “I™d like to be very wealthy,” he said, “and
links to 22 failed S&Ls. Four of Silverado™s largest
better communications link. ˜The Hughes satellites offer borrowers had ties to convicted Louisiana organized- I™ll be glad to let you know when I think I™ve reached my
economies and certain efficiencies,” Wall said. goal....”
crime figure Herman K. Beebe and to an alleged CIA
Wall and Scheinman acknowledged Asset At about the same time, Jeb Bush began doing
money launderer, both involved in the collapse of
Management has an indirect involvement with Hughes, numerous Texas S&Ls. Another Silverado borrower business with IMC-a $12 million real estate deal.
which they declined to discuss, that could lead to On August 10, C. MeClain Haddow was promoted
was involved in arming the Contras and was the business
additional business in China if the satellites are launched. partner of a man who took part in CIA assassination at the Department of Health and Human Services. He
“We are not directly involved, but some people we are attempts on Fidel Castro™s life. had risen from Chief of Staff for Utah Senator Orrin
working with are discussing needs in communication in Well-liked and well-connected in Washington, D.C. Hatch to Chief of Staff for then HHS Secretary Margaret
China,” said Scheinman. and Florida, John Ellis “Jeb” Bush has a reputation as a Heckler. Now he had become acting Administrator of
This is not Prescott Bush™s only business venture in .
“Mr. Fix-It” inside the Cuban-American community of the Health Care Financing Administration. Sixteen days
China that could be affected by an easing of sanctions. Miami. The President™s bilingual son has business and later, he signed an expansion waiver of the 50-50 rule
Through his private company, the President™s brother political ties to members of that community who are for Miguel Recarey™s IMC.
is involved in at least two separate ventures in Shanghai. Two years later, Haddow, testifying at a
active in CIA support of the Contras. This suggests
Prescott Bush visited Shanghai and Beijing two or three Bush is tied into a number of people under federal congressional hearing, said Jeb Bush had called Secretary
times a year in the mid-to-late 198Os, the Los Angeles indictment-with Bush himself vulnerable to ethical if Heckler to obtain the expansion waiver, that Heckler had
Timek reported! not prosecutorial scrutiny. approved the waiver and that she had referred Jeb to
Someone placed a telephone call from Washington, Haddow. He also remembered Heckler telling him that
Jeb, former Dade County (Florida) Republican Party
D.C., in October 1988 ordering a savings & loan field Chairman and (until his resignation in 1988) the State™s she had received “input from the White House and from
regulator in Colorado to wait two months-until after Secretary of Commerce, is drawing scrutiny for his outside the government” on the waiver decision.
Election Day-to close the failing Silverado Thrift in Haddow told Joe Cuomo that Jeb intervened twice-
“informal” lobbying for Miguel Recarey, Jr., a former
Denver, where candidate George Bush™s son Neil had high-powered Republican fundraiser. Political once prior to the initial (and less controversial) waiver,
been a Director, the Washington Post reported. contributions by Recarey and his associates include a and once prior to the August expansion waiver-each
Kermit Mowbray, the former top regional S&L $20,000 donation to a George Bush political-action time speaking first to Heckler, then to Haddow. Heckler,
regulator for Colorado, told the House Banking according to Haddow, had been -“a critic of IMC”, but
committee in 1985-86.
Committee that on telephoned orders from his Bush Realty, a partnership between Jeb and Miami she saw her future in Washington as tied to George
Washington bosses, he delayed issuing the takeover from Bush.
entrepreneur Armando Cod&t, received a $75,000 fee to
Silverado until the day after Bush was elected President. So, when Jeb called, the Secretary of HHS did an
locate a new corporate headquarters for International
Mowbray testified that field regulators had wanted Medical Centers, a health-maintenance organization that about-face. She thought “not bucking against the Vice
Silverado seized immediately. He couldn™t remember received $1 billion in federal funds before it collapsed in President™s son, would enhance her political stock. She
who called him. Federal regulators finally seized confided in me that she believed that she would be a
1987 amid fraud charges.
Silverado on December 9. The company never closed a deal, despite the viable vice-presidential contender on a Bush ticket in
M. Danny Wall, the nation™s chief thrift regulator $75,000 fee. Bush called federal health officials to steer ˜88,” Haddow said.
JANUARY 10,200O
Page 18 CONTACT: THE PHOENIX JOURNAL

Haddow also says that Heckler discussed her talks
with Jeb. On each occasion, Jeb contacted Haddow a
few days later and “replayed the gist of the conversation,
consistent with what Heckler had told me”. Haddow
remembers speaking with Jeb at “some length”
concerning the expansion-waiver decision and hearing
Jeb™s “reasons why he felt it was important to do this”.
Jeb Bush has acknowledged that he did help
Recarey, as a personal favor. As to specifics, Bush™s
son has come down with Reaganitis. Jeb has said that
he can™t recall speaking with either Haddow or Heckler.
Haddow, however, testified that he kept logs of his calls.
Jeb has never been asked to testify.
According to the Journal report, former Reagan aide
Lyn Nofziger (convicted in 1988 in an unrelated illegal-
lobbying case) and former Reagan presidential campaign
manager John Sears received approximately $400,000
and $300,000 respectively in lobbying fees from IMC
and other Recarey-owned companies to assist in
lobbying.
Recarey also ensured himself some high-powered
public-relations help when he retained Black, Manafort
and Stone.
JANUARY lo,2000 CONTACT: THE PHOENIX JOURNAL Page 19

Los Angeles Times inquiry on the subject. would like to see. At a protest outside Neil™s office at 410 Walters and Good, who were known to hold their liquor
Prescott Bush has also reportedly received $250,000 as 17ti St. in Denver™s financial district, signs read, “What else with the best of them.
a consultant to an American company establishing a lurks under the Bush™s?™ and “Bank Robbers Go To Jail!” Neil has said he “didn™t break any laws”, and that all
communications network in China, Asset Management Mark Stevens, a Denver businessman walking by the the loans he™voted for “were approved by the regulators”.
International Financing and Settlement Ltd. This company protest said, “Neil™s a doofus, not a thief. But what the hell He apparently sees nothing wrong with his proposal of a
arranged for Hughes Aircraft Co., now a subsidiary of is a doofus doing on the board of a major S&L? It™s hard $900,000 line-of-credit for Good for a joint oil venture in
General Motors, to export three communication satellites to to compare a 35-year-old dyslexic yuppie who™s trying to Argentina with his own company, JNB Exploration. He
China. President Bush approved the export of the satellites. climb the social ladder in Denver to guys like Walters and said Good™s lawyer Norman Brownstein drafted the letter
Bush, it should be recalled, headed the first U.S. Good. It™s clearly a case of mutual prostitution, where Neil and Neil signed it. Neil didn™t see anything wrong with
diplomatic mission to Red China. used Walters and Good and Silverado to further his career, failing to inform the board of Silverado that while Good
Savings & Loans once meant safety for depositors and and they used him for his name and all the clout and cover was considering investing $3 million in Neil™s oil company,
dreams for borrowers. It became one of the obscene phrases that comes with it.” Good was at the same time asking the board to absolve him
of our generation. The financial scandal of this century Neil™s day in court in 1990 irritated the judge, who of $8.5 million in debts.
continues to escalate. several times reprimanded Neil for his loud outbursts. Neil Bush told the attorney for the Office of Thrift
Americans forgot about the S&L fiasco for awhile. When sparring with the government attorney, Neil raised Supervision that he used the “Smith Smell Test” to
The Persian Gulf crises took the heat off Neil Bush, the his voice to emphasize his indignance. At one point Neil determine if anyone was using him for his last name, and
President™s son, up to his eyeballs in missing millions from was scolded for his comment about a question concerning if he would be offered the same deals if his name were
Silverado Bank-one of the worst of the nation™s failed Ken Good, ˜That™s such an outrageous hypothetical, I don™t Smith (his wife™s maiden name). But his name was Bush
savings and loans. It was a complete family affair, as think it™s appropriate for me to respond.” Neil was told by and he used it whenever he needed to remind people that
George Bush™s oldest son, George, Jr., held an interest in the judge that it wasn™t his place to decide what was he was the President™s son.
an oil well in Bahrain. A prominent Denver philanthropist, who was an
appropriate.
While Americans cheered the war, government While Neil was singing his Silverado stanzas, Sharon important business contact of Neil, phoned him one
attorneys were settling the $200-million lawsuit brought morning and invited him to a dinner at the home of a
Bush was shopping at the new Neiman-Marcus in the
against Neil Bush and his fellow officers and directors of Cherry Creek Mall. After a full day of testimony, Neil mutual friend: “It will only cost you a few thousand and
Silverado. joined his wife, waved at reporters and, with thumbs up, it™s for Dad. All the guys from Silverado will be there.
By settling out of court for $49 million-much covered climbed into a chauffeur-driven limousine. You™ll really enjoy yourself.”
by insuranc˜important evidence and testimony will never The middle son of successful oilman George Bush
The $200-million lawsuit never made it to trial.
be disclosed. Rather than fight the charges of conflict of interest and wasn™t a newcomer to proper political behavior. Neil and
Charming, ambitious and immature, Neil Bush was the his siblings experienced life inside the Beltway and all the
negligence, the officers and directors of the $1 billion
personal vehicle used by Denver businessmen. failure settled it out of court, silencing further disclosure. social pressure that went with it during George Bush™s years
The forces of greed sucked in Neil Bush. His presence Ed Gray, former Chairman of the Federal Home Loan Bank in Congress and the CIA. Neil wanted to make it big in
on the board of directors of Silverado was the perfect ploy the oil business just as his father had. He moved his new
Board, loudly told a deaf Washington audience of thrift
for the influence peddlers who wooed both political parties bride to Denver to take advantage of the oil boom in 1980.
abuse during the 198Os, “Neil Bush should be subjected to
in power wherever they needed it. Neil took a job with Amoco. The young Bush couple was
the same wheels of justice as any other American citizen of
Silverado™s board of directors included a political our country. The fact that his father is the most powerful embraced by Denver society. Sharon at once formed a
trophy whose name repelled the approaches of inquiring of man in the Western world shouldn™t make any difference partnership with the daughter of Denver Billionaire Marvin
regulators. Neil Bush was in business with Bill Walters whatsoever.” Davis, Nancy Davis Zarif. Neil played squash at the
and Ken Good, the largest borrowers and defaulters of Should it make any difference that his father was once Denver Club and Sharon volunteered for Children™s
Silverado money. Both men now say they are broke and the Director of the Central Intelligence Agency and an Hospital.
can™t pay back the money. Walters owes $106 million and expert in covert activities? The young Bushes, attractive and eager to please, were
Good $37 million. Neil voted to approve all their loans. Was there a conflict on Neil™s part? Both Walters and Denver™s political plums, the direct connection to
Neil told his family and friends: “I sleep soundly at Good made substantial donations of time and money to Washington, where politics could provide the medicine
night knowing I live an honest life.” Bush appeared before George Bush. Walters entertained Bush in his home in the Denver™s ailing economy needed.
the Office of Thrift Supervision at a hearing in Denver in In 1983, Neil left Amoco. His former boss told friends
early 1980s hosting a black-tie Republican fundraiser
September 1990. His testimony and courtroom demeanor benefiting the Reagan-Bush ticket. Good flew to Houston that Neil quit because things weren™t moving fast enough.
before the administrative judge didn™t do much to foster the to celebrate with the Bush family after the 1988 election. With two associates from Amoco-James Judd and Evans
“Mr. Perfect” name tag his siblings had given him. Nash-Neil formed JNB Oil Exploration. Neil invested
Before George Bush received the Republican
Pete Brewton, the Houston Post reporter who has nomination for President, he sent handwritten letters to $100, Judd and Nash invested $50 each. The rest of the
covered the S&L crisis, links Silverado with nearly 30 other each of his five children cautioning them to avoid even the initial financing came from a $1.75-million loan from
thrifts with possible connections to CIA operatives. He Cherry Creek National Bank and a personal investment of
appearance of any conflict of interest, no matter what
said, “Neil came off as a spoiled, petulant brat who $15O,ooO from the bank™s owner, Bill Walters. Ken Good
opportunities they might sacrifice.
apparently thinks the world owes him a wealthy living Jeb Bush spoke for his brothers and his sister Dorothy invested $10,000 and agreed to become the funding partner
because of who his father is. He also uses the shtick of when he said, ˜The first thing we can do to help our Dad of JNB.
being naive and gullible to justify his not abiding by the Neil defended his JNB venture even though it
is not get into any trouble.” Marvin Bush added that they
same rules the rest of us have to.” should “avoid sleazeballs, people who have quick-fix ultimately lost money. A Denver petroleum professional
Dubbed the “S &L Poster Boy” by angry taxpayers, who passed on the JNB opportunity said, “Judd and Nash
solutions, people who want you because your name is
Neil was the child of George and Barbara Bush least likely Bush.” were snake-oil peddlers who came to me to do some
to stray. Unable to read properly, Neil was tutored by his business. I don™t know what put me off more, their geology
Neil left the board of Silverado a few months before the
mother for dyslexia, a relatively common learning disorder. election, saying he didn™t want to create a conflict of or their suits.”
He went to Tulane University and earned a Master™s By 1985, JNB drilled several dry holes. That year
interest. Neil was aware of the thrift™s terminal condition.
degree in Business Administration. Neil told the Three days before Neil resigned, Silverado executives feared Michael Wise, Chairman of Silverado, asked Neil to join
Congressional Banking Committee that he didn™t a run by depositors and agreed to a consent letter, the board of directors. His employees called Wise
understand all the complicated loan transactions at “Alfred E. Newman”, the name of the smiling face on
considered by bankers to be the last rung on the ladder
MAD Magazine.
Silverado. before sudden death.
He claims that no laws were broken and that he had no He was close to Walters, who had mastered the system
Regulator Kenneth Mobray, the principal supervisory
conflicts of interest when serving on the board of Silverado: and convinced many Denverites that he was as unsinkable
agent of Silverado, can™t recall who called him from
as Molly Brown. Neil had been doing business with
Neil™s anger at being accused of a conflict of interest and Washington instructing him to delay the shutdown of
his cavalier attitude regarding his responsibilities sharply Walters since 1983. By the time Neil was voting on his
Silverado until four weeks after the presidential election.
contrast with the remorse Colorado Taxpayers for Justice Silverado loans, Walters was the President of the Greater
While in Denver, Mobray was a frequent companion of
lo,2000
Page 20 CONTACT: THE PHOENIX JOURNAL JANUARY

Hyatt & Madden is known as the consigkeri of Denver™s
Denver Chamber of Commerce. card-carrying member of the crew.”
Not everyone in Denver knew Walters™ tactics. A real-estate developers. He represented Good, Walters, It was Silverado™s Chairman, Mike Wise, who
former business associate said that he provided prostitutes invited Neil to the board. During his tenure at Silverado,
Silverado and MDC Holdings, a housing conglomerate with
for out-of-state lenders and frequently sent couriers with Wise was known for his heavy solicitation of loans that
over 70 subsidiaries owned by Larry Mizel. Brownstein
payoffs to Aurora City officials in exchange for zoning served on the board of MDC for several years and resigned required the borrower to obtain more money than needed,
variances. last September, in the midst of investigations of alleged then invest in Silverado preferred stock.
Shotgun Willy™s, an adult drinking establishment in wrongdoing, to devote more attention to the practice of law. Wise dropped in without an appointment one day and
Denver known for its flashy waitresses, was a favorite of Mizel has been an active Republican fundraiser and asked Hal Ramsay, the executive partner of Vantex, a
Walters and his “good 01™ boys”, as they could always strong supporter of George Bush. MDC is accused of division of Vantage of Texas, if he wanted to borrow $50
count on excellent service including private party rooms inflating its worth through phony transactions with million. When Wise explained that Ramsay had to pay five
in the rear. Silverado. MIX expanded its holdings considerably in the points up front, Ramsay burst out laughing and said, “Now,

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