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...this work? According to Ghadry, when U.S. arms went to Iran through Israel, the Saudis paid for them. The money went to Adnan Khashoggi, a billionaire Saudi businessman who was acting as a surrogate for the royal family. Khashoggi, in turn, would pay commissions to the Iranian middlemen and give the CIA the book value of the arms for repayment to the Pentagon. Various bank accounts and straw companies were used to conceal the routing of the funds. The same devious channels, according to Ghadry, were used to pour Saudi money into accounts to fund the contras...

Author: /time Magazine | Title: Pursuing the Money Connections | 1/26/2007 | See Source »

When Secord left Government service in 1983, he became president of Stanford Technology Trading Group International, based in Vienna, Va. He formed that company together with Albert Hakim, an Iranian-born arms dealer who runs a California electronics firm started up in the 1970s to sell sensitive U.S. technology overseas. Stanford Technology has had intriguing connections in Switzerland. There was a Stanford Technology Corp. in Geneva and a Stanford Technology Services in Freiburg. The Geneva firm had the same address as the Compagnie de Services Fiduciaires (C.S.F.), which the Times of London identified as the repository for $18 million...

Author: /time Magazine | Title: Pursuing the Money Connections | 1/26/2007 | See Source »

Despite North's efforts, contra leaders and others in Central America insist with good reason that nothing close to $30 million in Iranian arms profits was spent on military supplies or equipment. "The whole operation was held together with string," says William Wehrell, a pilot who flew supplies to the contras this year. "We couldn't even afford a proper navigational system to make sure that we dropped our loads to the right people...

Author: /time Magazine | Title: Pursuing the Money Connections | 1/26/2007 | See Source »

...most serious problem he has confronted during his 14 years in public office. According to an intimate, the President remains "very disappointed and very disturbed about what he was not told" about the Iran-contra scandal. Reagan still thinks he does not know all the details of the Iranian arms shipments and the subsequent funneling of profits to the Nicaraguan rebels. "Everybody keeps saying that they want all the facts," says this ally. "My God, so does he!" In his radio broadcast Saturday, the President regretfully conceded that "the execution of these policies was flawed, and mistakes were made...

Author: /time Magazine | Title: Under Heavy Fire | 1/26/2007 | See Source »

...Attorney General. Today the title has evolved into independent counsel; the investigator is chosen by a panel of three senior federal judges. Meese, in formally requesting an independent counsel, was expected to recommend that the counsel be given a mandate broad enough to permit an investigation into whether the Iranian arms shipments, as well as the diversion of money to the contras, may have violated the law. The judges are expected to announce their choice for the job this week...

Author: /time Magazine | Title: Under Heavy Fire | 1/26/2007 | See Source »

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