“-30 - 33. MHLUMEN A Liberian company which serves as owner of MHFETCH (see below) and as the source of an operational loan; no employees. 34. MHFETCH A Bahamian company which serves as owner of MHKOALA and MHWHIFF (see below); an investment vehicle and manager of non sta”
“for the purpose of purchasing an apartment overseas which was used for operational purposes. When the apartment was no longer of operational use in 1970, the company (and the apartment) was sold to a non-Agency connected party. No agreement for the continued use of the corp”
“- 31 - t 12;1 .3 i* .. J! 41. MHPIQUE A Florida company which provides payroll cover for three non-staff personnel who handle the Cuban dependents program payments and correspondence; three employees. 42. MHDELFT A Swiss company which serves as a holding company for MHH”
“status due to an operational flap which could have exposed the corporation. The last active 12. tax return was filed at the tax year ending March 31, 1966. An additional tax return will be filed for the past tax year which will indicate no financial transactions. Its assets ”
“payroll cover for project personnel and serves as an investment vehicle for funds; seven em ployees. 31. MHVODKA A Bermuda company which is a reinsurance vehicle for all types of casual ty and property insurance for other Agency proprietaries and directly issues death and ”
“(GMDI), Los Angeles, California, a firm that the Agency office of DDSST was dealing with. This Agency made no attempt to persuade GMDI to terminate their contract with Wackenhut Corporation, and it is assumed that GMDI is still receiving guard coverage from them. EOT 01108”
“credibility and relations with the jurisdiction in which the entity is located are not easy things to do according to Houston. This creates the ’'tendency, once you've got something that looks good, to hang on to it." He would recommend in this regard that the Agency be const”
“1000 (th i 2-/1 ri CLVlL ! IVE9 OM1 LILO 2. Interprogres Interprogres is a new subsidiary of the Mullen Company formed in 1971, as a result of contacts developed at the Zagreb Trade Fair in Yugoslavia. It is a pilot operation aimed at expanding East West commercial r”
“•LU I, 84 - DEINHAUL (Cont’d) in concert with the original objectives of the pro ject.. In 1967 under the terms of the Katzenbach Report, it was necessary for the Agency to discon tinue its support to the bona fide U.S. foundation (ostensible former owner of the bank as m”
“- 26 - Uhl: the United States; the company has accepted commercial charter flights from non-Agency customers for income and cover purposes. Media Publications The below six companies comprise a worldwide book dis STOW tribution and manuscript publishing activity. 11.”
“you are instructed to state that to the best of your knowledge and belief, the firms are adequately staffed. However, in order the the matter may be treated casually, the inquirer may be told to submit his application to the New York or Texas address, which ever applies, where it”
“Andreas’ firm, the Archer Daniels Midland Company, Decatur, Illinois, provided cover for five operation- al assets of this Agency between 1964 and 1969. In arranging for this activity, a total of 11 of the firm’s employees were briefed over the years. The Agency’s principal c”
“Agency and the National Transportation Safety Board. Specific problems were discussed, usually with the Office of General Counsel of the agency concerned by the CIA General Counsel. The Air Proprietaries dealt with State Department and the Agency for International Developmen”
“- 61 - (2) How many proprietaries have been sold, or their assets sold, to persons, or a group including persons, who had previously served as directors, officers or employees of the proprietaries? (3) In how many instances were proprietaries sold pursuant to a written agr”
“21 - IV. A DESCRIPTION OF THE VARIOUS PROPRIETARIES The operational needs of the Agency have required it to venture forth into many areas where proprietaries were a perceived necessary vehicle. These areas have included air support, media publications. proprietary manageme”
“13-00000 SCba%L1 DDA 77-2412 28 APR 1977 MEMORANDUM FOR: Mr. Halpern FROM: H. G. Bean Acting Executive Officer/DDA SUBJECT: Fairways Corporation REFERENCE: Attached memorandum from Central Cover Staff 1. With reference to paragraph 4 in the attached memorandum from ”
“- 45 - LPBYZAS/3 A European company with no employees which holds the Agency’s interest in another European company which was used in the past to provide cover for one Agency employee. This company is being retained solely for the purpose of holding an Agency investment. Un”
“Co., made donations’ in the company names and the Agency notified the Com missioner of Internal Revenue about the donations so that they could be treated as corporate tax deductions. 7a/ - 209 - . TOP SECRET”
“- 29 - States Government. The complex also underwrites, insurance risks of certain proprietary organizations and administers the pension plans of these organizations. In addition, the complex has been used to provide a limited amount of support to other Agency operations --”
“■74■ There follows a description of the disposition of, entities 2 sold or otherwise disposed of during the referenced period. Twenty- nine (29) of the entities were sold or given to witting individuals (former officers, employees, managers, contractors, etc.) Five (5) were”
“- - 36 - Operational Support WUTACTIC Complex The below 27 companies are managed by the Cover and Commercial Staff to provide operational support mechan isms for DDO foreign operations. Some companies are in active and held for future use. 68. LPCEMENT A Liechtenstein”
“8’9 - cCRET O5,1110 QKOPERA/DTGODOWN (Cont’d) income producing securities. At the time the Agency withdrew its support, the assets of the entity were given to its witting Board of Directors with the understanding that approximately 60% of the portfolio of investments wou”
“broadcasting activity which was turned over to the Department of State for support and subsequently placed under the control of the Board of International Broadcasters for continued operation with Congressional support. ZRCANNY This U.S. foundation type proprietary served as”
“- 93 - (j) DELICATE - security support for DDS&T project, consisting mainly of badging and entry controls, background investigations, and escort of sensitive material; this is the only such activity • currently being serviced by MHBOUND; (k) PINEAPPLE - physical surveillanc”
“- 43 - DESCRIPTIONS OF MAJOR HEADQUARTERS-CON ('ROLLED R1779 PROPRIETARIES FOUND ON THE SCHEDULE ATTACHED TO A 24 SEPTEMBER 1975 MEMORANDUM TO THE COMPTROLLER FROM THE OFFICE OF FINANCE 16 / LPBERRY/B A one man, one secretary accounting and legal firm in New York City whic”
“Southeast Asia. This support has been under cover of a commercial flying service in fulfillment of U.S. Government contracts. Corporate Headquarters has been in Washington, D. C., with field Headquarters in Taipei, Taiwan. The insurance complex provides a mechanism for the pa”
“same review as any corporate entity within that jurisdiction, file applicable state and/or federal tax returns, and obtain the necessary licenses to conduct their normal business. The purposes served by them are two-fold: they provide cover, attribution for funding, and admin”
“combined net worth of approximately $325,000. Of this amount, almost $200,000 was operating capital for three companies which provide cover for several Agency personnel. Examples of two non- operating companies which are commercially managed, keep books of account, and can wi”
“- 23 - currently has 63 employees. In addition to the proprietaries mentioned above, the Agency managed 243 funding and payrolling mechanisms which provided payrolling services for 149 employees. NW 50955 DocId: 32423532 Page 28”
“TR DXB) notional company. CCS/NY PMC* - 3 officers (9 aliases) on 13 proprietary entities. CCS/NY PMC* - 1 proprietary-hire (1 alias) on 3 proprietary entities. CCS/MD PMC* - 1 officer (2 aliases) on 2 proprietary entities. Proprietary Management Company 1 r -3- SECR”
“1 34 - 58. WUBACH A newly established New York corporation with offices in mid-town Manhattan which is styled as a management consulting firm; was created to replace WUBODKIN and WUCURULE (above); used by New York Base personnel for employment attribution and office space”
“- 12 - for the proprietary are compatible and consistent with normal practices and requirements for the type of instrumentality being established. The Director of Finance representative is the Chief of the Commercial Systems and Audit Division, a position normally occupied b”
“employee. On two occasions the Agency turned over proprietaries to other government departments and on one occasion it sold a proprietary to another government department. There were several instances where the Agency gave the assets of a proprietary after liquidation (books,”
“-99 - VIII: MHMUTUAL: THE INSURANCE-INVESTMENT COMPLEX a) A BRIEF HISTORY MHMUTUAL is a complex of insurance companies, most of which are located abroad, operated by the Agency to provide the following services: a) reinsurance of aircraft damage or liability risks osten”
“7) Exclusive long-term research and development, : including projected ‘investment costs, in the Department” of Transportations, $20-billion T.F.C. network plans; ~% XN *290 w@rses.rSoy Ac - s-gh 2698 */p 190 wel vr%8) Research and mortgage-investment development orin a $70-”
“SECK - 86 - . QRMASTER (Cont’d) to its manager with full expectation of continued operation with heavy Agency subsidy. At the time of sale, substantial funds were removed, from the entity leaving it without sufficient working capital. Consequently, the Agency arranged for ”
“the Agency in the Far East. At the time the Agency withdrew. its support for the activity in 1967, the assets of the organization with a substantial termination ' payment were turned over to the witting Board of Directors of the entity. The entity has. continued its work wi”
“- 11 - proper conduct by entities. Each Agency component involved is responsible for compliance, and the Chief of the Cover and Commercial Staff, the Director of Finance, and the Comptroller are particularly watchful in their areas of concern. B. Project Reviews and Control”
“entity, which provided status and, access cover for several case officers in the Far East, was sold in 1975 to unwitting purchasers.. There have been no Agency contacts with the purchaser since then. All sale pro ceeds were returned to the Agency. CALANCET This proprietary”
“these companies that we had in 21 this insurance complex appeared to have the substance any 22 insraance company would be expected to have. Actually, the 23 t : whole fund for all of them was managed as a central fund under 24 410 First thissone project officer. On t”
“support. As of March 31, 1972, that proprietary had invested $50,000 in time deposits. LPMANTLE is part of the WUTACTIC complex managed by the Cover and Commercial Staff to provide operational support mechanisms for DDO foreign operations. It is a Delaware corporation which ”
“€7 - 79 - TAB 0 Page 4 MHIRONY This proprietary was established for the use of the insurance complex, but it was never activated. The corporate shell was sold in 1974 to the un witting attornies who served as resident agents. No agreement was made with the purchaser for”
“the equity in this foreign entity which constructed low cost housing in one of the less developed countries of the world. The Agency's equity was sold to WUPESKY, a private company which, provided cover for an Agency employee who managed the Agency's foreign low cost housing”
“- 44 - % 46 PDDYNAMIC A domestic based corporation with a German branch which fosters the aims of a nation alistic group within the USSR and publishes selected books and periodicals for distri bution to members of this nationalistic group. The New York and German offices ”
“firms such as SAT do not necessarily enjoy the status of U.S. Government employees. CONFLICT OF. INTEREST 1 In the SAT divestiture, the Agency took precautions to avoid conflict.of interest. Mr. George A. Doole, Jr., retired Staff Agent and retired Managing Director of Air”
“Phone (A re a 2 0 2 ) 5 4 4 -6 0 0 0 TOP SECRET 55 1 Mr. Houston. It was a memo of DITEL’s that I saw. 2 I think it was dated after I left. I saw it in draft after- 5 ward. It had to do, I recall, with operations in the Trust 4 Territories. 5 Mr. Wides. Inrother words,”
“hout going into details of the discussions, the follow- ing actions were agreed on by PDLADLE: a. b. Except for one further loan of approximately $10,000 to pay off a bank mortgage on the New York City property, no more loans will be made by the Agency. Note: It is necess- ary th”
“or not there was a written or informal agreement of such a relation ship at the time the proprietary or its assets were acquired from the Agency? Indicate for each instance the nature of the business, the dollar amounts of the transactions involved and the period of years d”
“SECRET — 41 . TAB B Employees* of Proprietaries as of October 30, 1975 U.S. Agency U.S. Foreign Employees Prop. Hire Prop. Hires' Totals IUBETON Complex 3 116 1 120 JBGREED Complex 2 31 30 63 HBSANDTRAP 6 0 0 6 PDPORTAL Complex 0 10. 9 19 TOMOSAIC 0 0 0 0 AELEDGER 1 0”
“-7- B. Nonoperating Proprietaries Nonoperating proprietaries vary in complexity according to their Agency task, are, for the most part, either corporate shells or less that facilitate foreign operations, and clearly pose no competitive threat to bona fide businesses. The mo”