Monday, March 8, 2010

Power Corp Ponzi scheme

Synopsis: I allege Power Corp Ponzi scheme sold catastrophe bonds, triggered by sabotage of levees for 15' water flood in N.O. with kickbacks to FEMA and Louisiana State pension funds.

Open e-mail sent Saturday, November 18th, 2006

For the attention of: U.S. Attorney General, Alberto R. Gonzales,
U.S. Department of Justice AskDOJ@...

The Honourable Vic Toews, Minister of Justice and Attorney General of Canada Toews.V@...

From: David Hawkins, Forensic Economist at Hawks CAFE
Foundation Scholar,
Cambridge University British Columbia, Canada Tel: 604-542-0891

Ccs include: U.S. Vice-President Richard Cheney, Canadian Minister of Public Safety, the Honourable Stockwell Day, Canadian Prime Minister, Stephen Harper,Thomas J. Coyne, President, Coyne and Associates, Inc. Professor of Finance (retired since 1995), John Carroll University

Media and bccs:

Dear Attorney General Gonzales and Minister Toews:

Re: Power Corp Ponzi scheme – Katrina catastrophe bond

I allege that Power Corporation of Canada is operating a global Ponzi scheme by selling catastrophe ('cat') bonds in which high-interest returns are used to entrap new investors, pay off earlier investors and then extort the principal of the bond when an allegedly low-risk catastrophic event is triggered by Power Corp's subcontracted acts of sabotage.

In the case of Hurricane Katrina and the allegedly-consequential flooding of New Orleans, I find circumstantial evidence that cat-bond kickbacks were paid as "blood-and-hush" money to Power Corp insiders, including city-state politicians, FEMA first responders, U.S. Army Corps of Engineers, the Louisiana State Employees' Retirement System and affiliates of the Carlyle Canada* hedge-fund and private equity group.

My research indicates that Power Corp ordered U.K. general contractor Amec and French cement company, Lafarge, to trigger a cat bond, 17 hours after Hurricane Katrina had passed 80 miles to the east of the city, using a Lafarge barge as a command center in the Industrial Canal and blast technicians and expert saboteurs, recruited through hiring halls run by the mobbed-up Laborers International Union of North America ('LIUNA').

I believe Power Corp. had originally financed FEMA procurement frauds in pre-pay contracts with Amec for computer simulations to determine the depths to which sheet piles – interlocking sheets of steel driven into soil to anchor levees and prevent water flow underneath – should be driven to ensure the levees failed in a Category 3 hurricane.

In the alleged scheme, Power Corp's satellite-surveillance affiliate, Macdonald Dettwiler and Associates, was pre-paid to monitor levee sections built with shallow sheet piles, predict the path of hurricanes such as Katrina and maximize profits from some triggered, insured catastrophe event using MDA's MindBox rule-based event-arbitrage software.

As Katrina approached N.O., unwitting investors would have been duped into buying Power Corp's parametric cat (catastrophe) bonds which would lose their value if flood waters along the hurricane's path exceeded some specified depth such as 15 feet.

But Katrina passed 80 miles to the east and its storm surge was insufficient to overtop the allegedly-sabotaged levees and trigger Power Corp.'s parametric cat bond!

I allege that, seventeen hours after Katrina passed by N.O., without triggering the cat bond, Power Corp project managers ordered Amec to loosen the Lafarge barge mooring system, smash the walls of the Industrial Canal, blow up levee sections pre-selected by the Amec computer simulations and generate the neccessary 15' of flood water.

Background information on this allegation and my research can be found at the urls below ...

Yours sincerely, David Hawkins

Notes: "Power Corp Ponzi scheme – Katrina catastrophe bond"

"[Hurricane Katrina] devastation of metropolitan New Orleans .. flaw in levee design by the Army Corps of Engineers .. levee that toppled at the 17th Street Canal was built with too little regard for the weakness of the soil underneath. Similar conditions .. at the sites of the two other major levee breaches .. "It should have been obvious," said the deputy director of the Louisiana State University Hurricane Center, Ivor van Heerden, the leader of the investigative group Team Louisiana .. sheet piles, interlocking sheets of steel driven into soil to anchor levees and prevent flow of water underneath them, too shallow to prevent that flow .. sheet piles reached only 10 feet below sea level in some spots, far less than would protect the city. Corps documents dating from the time of construction show design was for a depth of 17 1/2 feet, but even that, the investigators say, would have been too shallow. By comparison, in spots where the levees are being repaired, the Corps of Engineers is calling for sheet piles to be driven to a depth of 51 to 65 feet."

"[Amec] skills required .. understanding of working with different levels of government. Risk identification specifies the hazards to which a community or project is most vulnerable .. ranks them according to impact. All communities in the United States are supposed to have a hazard mitigation plan .. prevention is cheaper than cure: cost of the New Orleans tragedy is put at US$200 billion. A good example of risk reduction, given the propensity of people around the world to congregate in low-lying areas, is flood risk assessment. United States National Flood Insurance Program .. key component .. preparation of flood hazard maps .. AMEC working with the Federal Emergency Management Agency (FEMA) .. to develop digital flood hazard maps using advanced geographic information systems .. for insurance purposes .. To the extent that insurance is obtained or flood defences erected at public expense, private risk is transferred .. much less likely in poor countries, where people cannot afford insurance and the state may not be able to afford preventative measures."

"Catastrophe (CAT) bonds .. financial derivatives .. traded on the world markets. In the mid-1990s a market emerged to transfer reinsurance risk [of] natural catastrophes from corporations, insurers and re-insurers to capital market investors .. referred to as insurance-linked securities (ILS) .. [Power Corp] sponsor establishes special purpose vehicle (SPV) as issuer of bonds .. issuer sells bonds to investors .. proceeds from sale invested in collateral account .. sponsor pays premium to issuer; this and investment of bond proceeds are source of interest paid to investors. If specified catastrophic risk is triggered, funds withdrawn from collateral account and paid to [Power Corp] sponsor .. three types of ILS triggers: indemnity, index and parametric. An indemnity trigger involves actual losses of bond-issuing insurer [e.g. Power Corp following Amec's alleged demolition of the Twin Towers on 9/11] .. An industry index trigger involves, in the US for example, [e.g. Power Corp, following Amec's alleged sabotage to close NYSE for 4 trading days after 9/11 and contrive $1.2 trillion loss on index for market capitalization]. A parametric trigger is based on [Power Corp, following Amec's alleged sabotage of N.O. levees to obtain a flood water depth in excess of 15' from Category 3 Hurricane Katrina]."

"E-Letter To Daniel Machalaba And The Wall Street Journal Re: "Still Unknown: Did Barge Strike Levee?" .. possibility `breach' in levee near lower Ninth Ward of New Orleans caused by barge that crashed into it .. suggestion by Minister Louis Farrakhan of The Nation of Islam, that levee may have been blown up to destroy Black part of the city .. reliable source saw twenty-five foot crater underneath levee that was breached .. "I was stunned in New Orleans at how many black New Orleanians would tell me that somehow levee breaks had been engineered to save the French Quarter and Garden District at the expense of Lower Ninth Ward .. these are not wild-eyed people. reasonable, sober people really believe that." .. Ingram Barge Co. owns barge that careened down the Industrial Canal ..Army Corps of Engineers .. said one possible cause of this breach is that the barge smashed through. Another possibility .. the floodwaters went over the top of the levee caused the failure by weakening its structure .. corps hasn't yet begun investigation .. "It seems to us likely that the flood wall failed, and the barge was sucked through and didn't ram a hole in the levee," Mr. Mecklenborg said ... [barge] operated by Lafarge [Hillary Clinton, Power Corp-sponsored director 1990-1992] construction materials company based in Herndon, Va. Sherry Peske, Lafarge's vice president-communications and public affairs … barge `swept through the levee,' Mr. Machalaba? You write it as a fact on September 17th, when on September 10th only a theory .. Finally, I have, for weeks noticed the raging debate over insurance companies attempting to back out of covering claims to insured Katrina victims who had their home damaged .. justification that these homes were covered for rain damage not damage caused by flood that came from a breach in a levee [the less money paid to claimants, the bigger kickbacks of cat bond principal on the alleged Ponzi scheme to Power Corp.'s insiders] .. Sincerely, Cedric Muhammad, Publisher,"

Indications that LIUNA's mobbed-up paramilitaries and saboteurs and Chinese espionage agents, may be working with Bill and Hillary Clinton ".. Clinton-Gore fundraiser Johnny Chung testified before Congress that ex-Clinton aide Mark E. Middleton received $500,000 from Chinese officials "to do good things for China." The revelation adds urgency to the question of whether the corrupt Laborers' International Union of North America (LIUNA) is helping Clinton-Gore cover-up the Chinese espionage scandal. The question was first raised by NLPC, based on original research conducted as part of its Organized Labor Accountability Project. "

*The Carlyle Canada Private Equity Group: Allegedly in contact with SWAT teams in virtual war rooms for contract sabotage to trigger Power Corp.'s catastrophe bonds, Carlyle Canada's private equity group included James A. Baker (now sabotaging the Coalition of the Willing working in Iraq), Frank C. Carlucci (Chairman of Nortel and its $100 billion "pump-and-dump" hedge fund frauds until April 2001), Laurent Beaudoin (set up the bogus loan-financed NATO war-game school in Canada, allegedly with money stolen by Carlyle from the UN Oil-for-Food program and allegedly used by Carlyle Canada to rehearse the NATO maneuvers used in the sabotage of NORAD on 9/11), Peter G. Bentley (CAI's MindBox and international advisory board of Chase Manhattan Bank - now JP Morgan), Andre Bisson, Paul Desmarais Sr. (Chairman of the Board of Pargesa Holding S.A. (Switzerland). Member of international advisory committee of Chase Manhattan Bank - now JP Morgan - and the supervisory council of AXA and the Compagnie Financière de Paribas (France)), Peter Lougheed, Frank McKenna (CAI's MindBox and Amec advisory council), David P. O'Brian, Hartley T. Richardson (director of Macdonald Dettwiler and Associates - provider of virtual war room and MindBox services to NATO-NORAD and Canada - on 9/11+1), William Sinclair and Lynton Wilson (CAI's MindBox and from May 2001, the Chairman of Nortel Networks, a provider of VoIP and virtual war room services to the Pentagon where wire and wireless systems were sabotaged on 9/11 to bypass the presidential chain-of-command. Nortel is under investigation for its $100 billion "pump-and-dump" fraud in Canada and America which asset stripped many labor-union pension funds).

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