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THOMAS DEWEY EASTON, ESQ.

Califomia Srare Bar #t092t8
2782 NE Baroness Place

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Bend, Oregon9770l Tel: (541) 317-97tJ0 Fax:(541) 3 l7-9800

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JONATHAN H. LEVY, ESQ.

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California State Bar #158032 Post Offrce Box 6080 Cincinnati OH45206 Tel: (513) 528-0586
Fax:(513) 281-8338 Attorneys for Plaiutiffs and the Class

7
8

Of Counsel:
9

Ii

LEE BOYD, ESQ.

l0
11

California State Bar #189496 Pepperdine University Law School 24255 Pactfic Coast Highway Malibu, California 90263 Tel: (310) 317-7684 MTLOSH MTLENKOVICH, ESQ.
5851 Pearl Road, Suite 302 Parma Heights, Ohio 44130

t2
l3

t4 l5
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18

Tel: (440) 840-2770 DUNCAI\I MACDONALD, ESQ. Banister-at-Law (Middle Ternple)

Praga Tiradentes 97, Sala 301

Betim, MG CEP 3250I-970,Brazil

Tel:

(01

l-55-31)

53 1-5681 53

Fax: (01 l-55-3

l)

l-3s60

UNITED STATES DISTRICT COURT

L9

20

NORTHERN DISTRICT OF CALIFORNIA

2l
22
23

EMIL ALPERIN, et al.

Plaintiffs,
Y.

NO. Cee-4e41 MMC (EDL)

VATICAN BANK, a/k/a "INSTITUTE OF RELIGIOUS WOIIKS"; Et AI.

Defendants.

DECLARATION OF DAVID GTIYATT IN SUPPORT OF'MOTION FOR JURISDICTIONAL DISCOVERY

24
25

26
27 28

I, David Guyatt, declare

1.

as

follows:
specialist fields of financial exposes,

I am a Freelance investigative journalist working in the

military and intelligence issues, the global narcotics industry, advanced surreptitious anti-personnel
DEcLARATToN oF DAvTD

Gwer -

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2000

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I
2
a J

weapon systems, money laundering, organised crime activities and the black market in gold and other
assets plundered in

WWI l.

2.

have worked with the International Committee

of the Red Cross (ICRC)

Geneva,

4
5

Switzerland, as an expert consultant on two weapon related projects. The first was the 1996 Montreaux symposium "The Medical Profession and The Effects of Weapons," where I prepared a paper entitled "Some Aspects of Anti Personnel Electromagnetic Weapons." This essay later became the basis for a Swiss television documentary programme on Non Lethal Weapon Technologies broadcast

6 7 8 9

in

1997.

Following this I was invited to participate with an international team of experts for the ICRC's 1997 SirUS Project, which sought to determine which weapons cause Superfluous Injury or Unnecessary Suffering. The resulting project paper has, subsequently, been published in English, French, Spanish,

l0
11

Arabic and Russian and has become the benchmark for the implementation of new international laws
governing the use of abhorrent weapons.

T2
13

3.

have also written for the World Development Movement on my "insiders" knowledge

of

t4 l5 t6 t7

international weapons financing gained during my years in international banking. Additionally, I was
engaged as consultant for the two-part World In Action TV documentary that exposed Britain's weapon

trail to Indonesia, broadcast in April 1997.

4. I have also worked closely with a British TV producer on a number of documentary projects
as

l8
t9
20

well as having written numerous exclusive cover and feature articles for British and international

publications. This year saw the publication of my book TFIE SECRET GOLD TREATY that exposes
the true story ofwhat happened to WW

II gold and other plunder. This followed

four and a halfyear

2l
22
23

investigation into the shadowy realm of the international black market.

5. Earlier, during a27-year career in international banking

I have worked for three prestigious

Wall Street investment banks, one Italian investment bank, a major British international bank and a
number of "blue chip" stockbrokers.
6.

24
25

My last banking position was Associate Director and Treasurer ofMidland Bank Aval Limited,

26 27
28

the Forfaiting (Trade Finance) division ofMidland Bank International (now the Hong Kong

&

Shanghai

Banking Group). My responsibilities included financing the banks

ril

billion annual turnover of its

investment and trading portfolios via daily involvement in the international money, foreign exchange and
DEcLARArroN oF DAVrD

Guyerr

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derivatives market. I was additionally responsible for trading the banks Fixed Income portfolio in the international capitalmarkets and was charged with developing more versatile funding strategies for the
bank as a whole. I was a member of the Midland Bank Group International Trade Services (MBGITS)

)
a

4
5

Treasury Committee.

7.

I was headhunted to the foregoing

position from Euromobiliare, a London based Italian

investment bank where I held the position ofManager. Responsibilities included operational management

7
8 9

of the firms Fixed Income Securities and listed international Equity trading.
8. Earlier, I was the Operations Manager/Comptroller

ofBlyth Eastman Dillon Limited

- the

Fixed

Income trading arm ofthis Wall Street investment bank (now part ofthe Lehman Group). I was recruited
and

l0 to this position at the personal invitation ofthe Managing Director with a remit to set-up operations
11

establish best practice systems prior to the business launch ofthis newly established division in London.

I2 l3

9. Preceding this

held a number of junior management positions in a small variety of

Stockbrokers and investment bank including White Weld & Co (now part of Credit Suisse First Boston

t4 l5
16

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-depth

investigation into WW II plunder, I am struck by a number of comments made by

Stevens that
11.

Aw. Franco Grande

t7

I consider ill informed

and inaccurate.

l8
t9
20

Aw. Grande Stevens contention that "it is the custom and practice of the IOR not to retain 2l),
is frankly incredulous. I believe

records after ten years" (Item

it is likely that Aw. Grande

Stevens

is confused in this regard and that this confusion probably results from his lack of personal experience
and knowledge in the arena of banking administration and operations.
12. As a significant international banking presence, the

2l
22
23

IORwould almost certainly adhere to the

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.

24
25

I can think of no responsible

bank that would adopt such a policy since the chance of future

26 27
28

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 important

transactional records, serving and retired staffrecords and on-going insurance papers, for example. In
DEcLARArroN or Devro

Guyerr

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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

4
5

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 is not uncommon for important records to be microfilmed and kept in this media for very long periods time, indeed.
15. Moreover, Grande Stevens claims that the IOR is primarily an instrument of the Office of the

6 7
8

of

9 10
11

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

L2
13

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

t4
15

include IOR records of Vatican employee pension schemes (which the IOR is also responsible for
administering as Aw. Grande Stevens explains in his declaration). This is one very obvious category.

t6

tl
l8
t9
20
2L

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 .

22
23

can also draw on considerable personal experience from the time

I spent in banking to show

24
25 26

that the custom adopted by the broadest spectrum of bankers is to retain records for long durations. I 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
Dscr.ARArtoN oF DAvID

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28

Gwerr

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future events.
18.

I have also taken the liberty of speaking with

former colleague who still works in banking

in an executive role and who is knowledgeable in these matters. He confirmed my own view and added

4
5

that the general Golden Rule adhered to amongst London banks in regard to record keeping
"materiality.

is

"

In other words, significant transactional records and other materially important classes of

6 7
8

papers are kept for as long as fifty years and longer. Extremely important records could be kept in perpetuity.
19.

also spoke briefly with a representative of the Financial Services Authority, a government

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

i0

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t3
T4

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 has

discussed. By nature and training, bankers are amongst the most prudent mortals to walk the earth and

l5
16

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.

l7 l8
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20
2T

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 international

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
23

24
25

22.

covld go into great detail about this side of the IOR if required, but do not wish to tire the

patience of the Court. However, I think it is necessary to briefly present some examples.

26 27
28

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

of

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 million, courtesy of the New York Mafia, had been "ordered" by "someone with financial authority" within the

Vatican. Lynch and his team of OCR investigators secured evidence identifying that "someone" to be
none other than Bishop Paul Marcinkus. Moreover, the delivery ofthe US$14.5 million bonds was only
a

4
5

down payrnent and that a whopping total of US$950 million in fake bonds had been ordered by the IOR

at a discount to face value of $635 million. The evidence collected by Lynch included a letter issued Vatican letterhead confirming that it wished to "buy the complete stock ofthe merchandise up to the sum

7
8 9 10
11

of 950 million dollars." Prior to accepting full delivery, Bishop Marcinkus had apparently arranged for

two trial deposits to be made in order to test the craftsmanship of fraudulent bonds. The first deposit,
consisting of $1.5 million worth of the bonds, was made with Handelsbank, Zurich. The second test deposit saw $2.5 million worth of bonds being placed with Banco di Roma. Acclaimed author David

t2 l3
r4

Yallop, in his book IN GOD'S NAME, was told that Bishop Marcinkus and Mafia financier, Michele
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 citizens

l5

to evade tax by using IOR facilities to export considerable sums of Lira in nero (in the dark) to countries
outside Italian jurisdiction. Bishop Marcinkus who was head of the IOR at that time was reported as
saying that the "system used by the IOR

l6
T7

to export funds was the 'perfect crime,"' according to author

l8
19

Nick Tosches in his biography of Mafia financier Michele Sindona entitled POWER ON EARTH
published in 1986.

20

25. Then there was the case of the mysterious 1982 death of Italian banker, Roberto Calvi,
Chairman of Italy's largest private bank, Banco Ambrosiano. Calvi was known as "God's Banker" due

2l
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23

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 certain

24
25

26 27
28

British law enforcement authorities. Moreover, during

a personal conversation

with a very highly placed

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's
Dsclenerrou or Deup Guyerr

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bank was on the verge of collapse due to the disappearance of hundreds of millions of dollars via IOR

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

J
4
5

senior

representative of Opus Dei - a right wing, shadowy, wealthy and extremely powerful Catholic sect which
is widely regarded

to engage in highly dubious activities. After reflecting on Calvi's presentation, senior

members of Opus Dei concluded that it was in their interests to see Banco Ambrosiano collapse as the ensuing scandal would open the way for Opus Dei to take control of the

7
8

IOR. By the account of

the

individual I spoke with and, indeed, many other investigators who have proclaimed on this matter, this
is what actually happened. In this regard

9 10
11

it is of some significance to learn that the present Pope is a

known loyal supporter of Opus Dei.

28. The consequence ofthe Calvi affair, which has received intense journalistic scrutiny over the
years, was that the

t2
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IOR agreed to pay $250 million to settle outstanding claims. I imagine this is what
See has, on

Aw. Grande Stevens means when he says in paragraph l9 of his declaration that the "Holy
past occasions provided financial assistance for the IOR."

t4 l5
16

29. There are numerous informative books that detail the Calvi and Banco Ambrosiano affair including Prof. N. T. Naylor's seminal work HOT MONEY
as

well David Yallop's, IN GOD'S NAME

l7
18

and Nick Tosches POWER ON EARTH - amongst a number of others.

30. More recently, author Robert Hutchison in his exceptional book on Opus Dei, THEIR
since missing papers

l9 KINGDOM COME, first publishedinlgg7,has revealed that letters and other long
20

from Roberto Calvi's black briefcase which accompanied him wherever he went and which disappeared
on the night of his death, had been purchased by Bishop Pavel Hnilica using cheques drawn on the IOR.

2l
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23

One of the Calvi's letters acquired by Bishop Hnilica was a demand that Calvi be ".repaid the $1,000

million that [he] furnished at the express wish of the Vatican in favour of [Poland's] Solidarity
[movement]
.

24
25

"

Calvi's shocking revelation certainly cannot be judged to show that the IOR was engaging

in a pietical or altruistic act on the Vatican's behalf in this matter. Indeed, this must certainly rank as a covert political intervention in the affairs of a foreign sovereign state.
31. Moreover, in my own investigation into the black gold market and WWI

26 27
28

I gold and other

plunder, I have repeatedly come across powerful indications of Vatican involvement in WWI I plunder.
DEcLARATroN oF DAvrD

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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

4
5

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 powerful

right-wing Catholic sect, Opus Dei, continue to be deeply involved in matters pertaining to the recovery
and ownership of gold plundered during

7
8

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

9 10

executive changes in IOR personnel have now brought the bank into line with international standards in

ll
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13

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
13 counts of Money Laundering

t4

l5

l6 in 1999 on dozens of offences that included 20 counts of Wire Fraud,

17

plus additional counts of Racketeering (RICO), Securities Fraud and Conspiracy and has been accused

l8
t9
20

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

2l
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23

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 emeritus

24
25

judge ofthe Roman Rota, which stated that he (Colagiovanni) had: "talked this morning with
a

Salerno [Bishop Francesco Salerno

See's supreme

leading Vatican economic official and now the secretary ofthe Holy

26 27
28

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
DECLARATToN oF

Dauo Guyerr

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thttt: 'rorr.,Rc.i',i.,,,, irr LJ, S. l)oll.trs irr

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b1,i\.1r.

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'{c(icuclitt$ lo l:ot'tu11(t, this/srJti.ngu,rrtrl'rvas latel rrrodiliecl tcJ r:reiltg ar) trrrl.rs lerrgtlt ,,laycr r.r1'

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itlFulatitrrt" thitl t','errl tiF\ptur)ntl:i tl'esignecl ttr 1:rr'otcr'( (lrr \/irl.iutur,s irrtugrirl,

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'l(i lu itilY c'\'(i?l'll, tlllc:e N'rr, F'rntthol's

ratrke! flecl t o ltott:c: irt

nctivitic.q carlre r.rrrdcrl i,rtcr),sc s.cr-rrliuy irr N{ay lgg9. lvtr.

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r.r'it.lr n $ I ()

millirn

lroar rl irr

rliurrrorrtls Ile lntcr rrnvc]lsd to ciermarry

6
'7

rvltel'9l,lr$.l[rt}rQri1ie*u|tiItt'tttcl5,t.''...,''*u|tirtrartiltr,Ilr:rcltcisrrc,rt,Lc,|)te5tillstj.xtludititlrrJrt.trt:t:c|illgsltl 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

ti (l
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Lr)rlvjorrsignor Erniiio ()olagiovanni

illld roYcalc.cl bv F'ortrine tltat 0atty lirnd or donation given to thc lvfonitc)r licclesiasticus Foundatiorr IA
()athQliu ittslittrttr.rrt lirrked to the IOR thnl wils trr trrr the arnrs tength entitv irr rrnnk.el's rllone), launrtelirrg,
artcl {i'arrtlrrlent tfnnsaotiotts'1"

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17,

J]lls urnrier the pi'otection of lhe "r,ely srrict c:olrficlcntialit-v

an<.1

secrery

liurv$"

thal npplt, 10 fiu-y snt.itli lirrked to the'\/ntican. I\{.onsigntu' (lolagiovurlui wclrt o1 t6 reveal thnt
an5,

l3
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"Only the Pclpe pet'.sonallv" oatr disckise details of

38.

deposits or Conations,

l.t

llt tlre

t:or.rrse

of his declaration, Avv. Grande Steverrs pointedly clotails the I()R's abscnce ot'
a$ Ar'r arglrprernt

t5

tlir$ct plescrncg ot itt\'(th'enrutrt irr the $itnte o{'Culit'rrrnia orl,he t)nit.e,d States

thfi

l.JS lrrw

r6

cannut lrincl il. l-lorvc:r,t-"r. u,hat is rtot rrriltioned or liighlighterl in paragraphs 24 tlrrough 32, are tl.l0 t0lt's bunking, relotiorxhilrs irr Cali{'rrlrria r$(teivc: pfiynlents

t'/ l8
19

ol

tlre Utrjt.ed

Stittes. Since it illLtslr fi"onr tirne to

[irnc,, cr{Icc:t antl

in US dollars in uu1, nlnllner of tJ$ clotlar dencurirrated transaclion$, tjlc IOR will

c:ct-taitlly ltave n Con:r'spond*rit banking rela.tionship rvith at least one

tlfi

bank and trrrobnbly r;everal,

R(:,qe.t-vc.

as

?o

is cttstotttitry, lt

i-s

nlso like!y to have a hankrng ielationship rvith the l-lrritecl States F'eclelnl

7l
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LJ 24

I deslare unclet penalty of pe{rrry

uncler thc larvs of the State ot'Calilbrlria that the fprep,oiug is

'!(rs"r';rn

rrue rrnct correct ancr execurea

tr,iss-l -,roy

or.M[1{s.-

,lfunfi.,

1 R\

\ffi,",

r,ri,.,,

),Il I4ffitt

25
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2tt
Dr.cr...rrtAttr.)N (rf DA\'lt) CtlyAtT

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