INSLAW
There has been one known murder in Northern California that has strong possible links to the bankruptcy system. There have been several more in Texas. This series will focus on different incidents from various parts of the country.
One of the most bizarre cases of corruption in the bankruptcy system involves a small Washington-based computer software firm called INSLAW. In 1982 the firm signed a three year contract for $10 million with the U.S. Department of Justice. The software program INSLAW developed was a case-management computer program called PROMIS. The software, which was developed by Bill Hamilton, enabled the U.S. attorneys to keep track of information on cases, witnesses and defendants, and to manage their caseloads more effectively.
Though the U.S. Attorney's Office placed the PROMIS program into operation in several of its offices, it refused to pay Hamilton. Subsequently Hamilton was forced into the bankruptcy court. Former U.S. Attorney General Elliot Richardson, representing Hamilton, advised him to sue the Justice Department for stealing his software.
Anthony Pasciuto, who was the deputy director of the Executive Office for U.S. Trustees, which oversees bankruptcy estates on behalf of the court, had stated that the Justice Department was improperly applying pressure on his office to convert INSLAW's Chapter 11 reorganization into a Chapter 7 liquidation, which would mean that all company assets, in- cluding the rights to PROMIS would be sold at auction.
U.S. Trustee Cornelius Blackshear corroborated Pasciuto's story. Two days after he was visited by Justice Department officials, Blackshear issued a sworn affidavit recanting his earlier testimony.
The Justice Department recommended that Pasciuto be fired. The memo seeking his dismissal reads "...but for Mr. Pasciuto's highly irresponsible actions, the Department would be in a much better litigation posture than it presently finds itself."
Federal Bankruptcy Judge George F. Bason, Jr., ruled in 1987 that the Justice Department had acted illegally in trying to put INSLAW out of business. Bason sent Edwin Meese a letter recommending that he designate an appropriate outside official to review the dispute because of the prima facie evidence of perjury by Justice Department officials, Meese did not respond.
Later that year after nearly three weeks of trial, Bason ruled in favor of INSLAW in its suit against the Justice Department. "The depart- ment (of Justice) took, converted, stole INSLAW's software by trickery, fraud and deceit," the judge stated, adding, "the Justice Department engaged in an outrageous, deceitful, fraudulent game of cat and mouse, demonstrating CONTEMPT for both the law and any principle of fair dealing." Judge Bason ordered the Justice Department to pay INSLAW $6.8 million. Bason's verdict was upheld on appeal by U.S. District Court Judge William B. Bryant. Three months after Bason's ruling, he was denied re-appointment to the bankruptcy court.
Hamilton's trouble began when a friend of Meese attempted to buy out INSLAW, but Hamilton turned him down. In a court document, the potential buyer is quoted as saying, "We have ways of making you sell." It was after that the trouble for INSLAW began.
The Senate Permanent Subcommittee on investigations, chaired by Senator Sam Nunn, began an investigation into the INSLAW case. Once the inquiry got under way, the Senate Judiciary Committee's chief investigator, Ronald LeGrand, received a phone call from an unnamed senior officer at the Justice Department, a person LeGrand has known for years. The caller told LeGrand that the "INSLAW case was a lot dirtier for the Department of Justice than Watergate had been, both in its breadth and its depth."
The Nunn Committee completed its investigation and published its report. It recognized that INSLAW has been a victim of the system and stated that "the Justice Department had been uncooperative, refusing to allow witnesses to testify without representatives of the litigation division being present to advise them. The effect of their presence was to intimi- date those who might otherwise have cooperated with the investigation." The report states, "The staff learned through various channels of a number of Department employees who desired to speak to the Subcommittee, but who chose not to out of fear for their jobs."
Congressman Jack Brooks of Texas has opened a new investi- gation into the INSLAW case. Brooks is investigating allegations that Justice Department officials, including Meese, conspired to force INSLAW into bankruptcy in order to deliver the firm's software to a rival company. The rival firm, according to court records and law enforcement officials, was headed by Earl W. Brian, a former Cabinet officer under then California Governor Ronald Reagan and a longtime friend of several high-ranking Republican officials. Meese had accepted a $15,000 interest- free loan from Brian. Meese's wife was an investor in the rival company. This is the same company that allegedly sought to buy INSLAW from Hamilton and made the alleged threat.
[Due to the fact that this file was over 80 KB in length originally, I will present only some of the highlights in regards to Wackenhut involvement, etc... - Wol.] On March 21, 1992, [Michael] Riconoscuito stated in an affidavit to the Court and Congress, and before he was arrested, the following:
THREATS FULFILLED
Videnieks alleged threats came true, Riconoscuito was arrested, and Bobbie's former husband was given favorable treatment in the courts in her absence.
Bobbie's arrest was timely. Her husband filed a declaration with the Federal Grand Jury in Chicago in compliance with a subpoena to testify. He told the Grand Jury that he needed two customized DEC VAX 11-730 computers with the customized operating system media. This is equipment seized by the U.S. Government when Riconoscuito was arrested. The declaration of Riconoscuito was filed in the United States District Court for the Northern District of Illinois Eastern Division (case No. 92 C 6217, Michael J. Riconoscuito, et al., Plaintiffs vs. Nicholas Bua, et al., Defendants.)
GRAND JURY STATEMENT
Riconoscuito told the Grand Jury that with the equipment he could produce information about various operations which developed extremely sensitive military applications from highly advanced tech- nology, such as:
MILITARY CONTRACTS
Riconoscuito also told the Grand Jury the computer can prove that he worked on the following military contracts:
WACKENHUT INVOLVEMENT
He also told the Grand Jury that the computer would prove the duplicity and TREASONOUS activity of certain officials of the Wackenhut Corporation, such as:
(a) Wackenhut would facilitate and broker said embargoed technology to countries, such as Chile, Brazil and Argentina, using military test sites as demonstration facilities.
(b) Officials of said countries would then, with full knowledge of Wackenhut officials, transfer said embargoed technology to countries such as Iran, Iraq, Jordan, Syria, the Peoples' Republic of China, South Africa and Israel.
Riconoscuito further stated that the computer would prove the duplicity and TREASONOUS activity of certain officials of First Inter- continental Development Company, a corporation cut-out (i.e., secret negotiating agent) for treasonous deals made through the White House, similar to the deals made through Wackenhut. He stated that one such deal was made with Iraq.
Riconoscuito testified that he was doing business with Thomsen CSF (a French conglomerate which developed the Exocet Missile), Inter- national Signals, Eaton Corporation, the Santa Barbara Research Division of Hughes Corporation, Dorn-Margolin, Texas Instruments, General Dyna- mics, Northrop, Kures-Alterman, E-Systems and Reynolds Capacitor.
CIA MONEY LAUNDERING
With Riconoscuito's credentials acclaimed by Congress and the Grand Jury, he further stated that he facilitated the laundering of CIA funds via his expertise in manipulating electronic data transmission equipment. This included the transfer of funds which were involved in the October Surprise payment to the Ayatollah Khomeini's regime in Iran. He said he was also responsible for the manner in which [the CIA] caused the interdiction of funds from the sale of Red Chinese gold and the manner in which large sums of CIA funds were secreted and knowledge of where those funds are located.
"The information available on my computer equipment would also tend to prove and show that the above described treasonous deals are related to the ongoing international scandals involving the Bank of Credit and Commerce International [BCCI] and the Banca Nazionale del Lavoro and that crucial features of said deals are centered in Chicago and involve the courts and prosecutors in Chicago," he stated.
THEN SHE WAS ARRESTED
After this explosive declaration was made public in the courts, Bobbie [Riconosciuto] was arrested in Napa, where she has been for about ten months. Her children were registered in local schools and she was living in American Canyon at the time. Bobbie is still in jail awaiting an extradition hearing.
The Napa Valley Register ran an article on Friday indicating that a Roberta Peterson was arrested for custodial interference and that her husband was a federal prisoner. Little did the public in Napa know the impact and national repercussions. Congressman Jack Brooks was notified. Neither the District Attorney's Office, Napa Police Department nor the Child Protective Services have knowledge of who Bobbie Riconoscuito (Peterson) is. Things like this never usually touch Napa, but they did Thursday.
The arrest of Bobbie ON THE EVE of Riconoscuito's testimony to a Federal Grand Jury probing corruption in the U.S. Government may not be a mere coincidence.
Napa judge must decide what to do with wife of a key federal witness
By Harry V. Martin
From the Halls of Congress, to the Cabazon Indian Reservation, to a Federal Grand Jury in Chicago, many eyes are focussed on what Napa Municipal Court Judge John Quigley will do.
Judge Quigley must decide whether or not Roberta Peterson Riconoscuito is extradited to the State of Washington. Riconoscuito was arrested in Napa on Thursday, November 12 near Vintage High School on an out-of-state warrant for custodial interference. It is a simple enough judicial case, if child custody were the real issue, but it isn't. The Judge reduced her bail from $50,000 to $7,500 and she was bailed out Monday from Napa County Jail. He also moved the hearing date to Monday, December 7, allowing her two weeks to gather up her paper work.
Held without bail on November 12, Riconoscuito was later allowed to have bail, $50,000 worth. The Napa County Probation Department this week has recommended bail be reduced to $7500. Riconoscuito's first arraignment on November 13 was held under unusually strict security. A rumor had been circulated that a violent attempt would be made to rescue her. Rumor was also spread throughout the jail that Riconoscuito had severely beaten her child, because of that rumor Riconoscuito was locked up in protective custody. The inmates, however, later retracted their threats of harm to Riconoscuito when they learned the rumors were totally unfounded. Three of the Riconoscuito's children are now with their father and the other is with family friends.
Strangely enough, the Napa County Probation report indicates that the Riconoscuito's children were well cared for, that the father knew at all times where Riconoscuito was located and that he is willing to return the children to her once she becomes settled. The report indicates Riconoscuito is no danger to the community.
Riconoscuito, the mother of four children, is caught in a national whirlwind that is drowning her and her children. She has been a key witness to the murder of an Indian leader of the Cabazon Tribe, and also has testified against law enforcement officials in the State of Washington. She has also cooperated with the F.B.I. on RITUAL CHILD ABUSE issues in Washington.
Riconoscuito's husband, Michael, is currently in jail in Chicago waiting to testify before a Federal Grand Jury investigating one of the biggest scandals in the U.S. Justice Department History, what some judges and congressmen refer to as "dirtier than Watergate"... Michael Riconoscuito was a computer expert for the Central Intel- ligence Agency, he was their Einstein. There was nothing he couldn't do with a computer, for good or for bad. But he had many secrets and he began to see the ruthlessness of his colleagues. Michael Riconoscuito decided to testify about massive corruption in the U.S. Justice Department and the intelligence agency. He agreed to provide his insider knowledge to the U.S. House Judiciary Committee investigating the INSLAW affair. He also gave his testimony to a Federal Bankruptcy Court which ruled that the Justice Department was deceitful, stole a $6 million software package. The INSLAW case was considered by mem- bers of Congress and the Federal Bankruptcy Judge to be dirtier than "Watergate". In fact, the Judge WAS REMOVED FROM THE BENCH after 14 years because of his ruling against the Justice Department.
Michael Riconoscuito, in providing his testimony, warned Congress and the Courts that he had been threatened [that] should he testify he would be arrested and his wife would lose a custody battle involving her children by a former marriage. The threats were carried in the Washington Times, St. Louis Post Dispatch and the Napa Sentinel. Within a week of Riconoscuito's testimony he was arrested by Federal Agents. Even while under arrest, he was subpoenaed to testify before a U.S. Federal Grand Jury seated to hear the INSLAW case. On Thursday, November 12, Michael Riconoscuito made a declaration to the court. After the declaration was filed his wife, Bobbie, was arrested, in Napa. Bobbie was arrested on a Washington warrant, charged with custodial interference. The warrant was three years old and it actually may be invalid inasmuch as Bobbie was never subpoenaed to appear before a custody suit after a temporary order giving custody of their children to the father was overturned years ago. When Bobbie was arraigned on Friday, heavy security was on hand and everyone was subject to electronic and personal search, a very unusual step associated with such a minor charge. She was being held without bail. Bail was finally set at $50,000. Bobbie had just delivered a letter to the Sentinel addressed to Con- gressman Jack Brooks and then a few minutes later she was arrested. Her arrest sparked interest with several national radio talk shows and some national media.
The federal agent who arrested Michael Riconoscuito after his Congres- sional declaration is the SAME AGENT who called the Napa County District Attorney's Office to have Bobbie arrested. The children voluntarily left with their father yesterday, but they indicated they felt it was only temporary.
After Michael Riconoscuito's arrest, Bobbie went into hiding, she and her family had been THREATENED and their home broken into. Both Bobbie and Michael Riconoscuito felt that the children were as much in danger as they were. Michael Riconoscuito possessed the knowledge that could destroy powerful forces in and out of Washington. [Indeed, if Riconosciuto's father was a pro-Nazi friend of Fred L. Crisman, and Michael himself was involved in the core of the CIA-Wackenhut biogenetics/underground base/suppressed tech- nology/abduction scenarios, and given that he is no doubt aware of most or all of those people around him who have been murdered -- researcher Danny Caso- laro, the 5 Wackenhut employees whe died in the helicopter 'crash', the Cabazon Indian leader Fred Alvares and his two friends, London reporter Anson Ng, Attorney Dennis Eisman, etc. -- as well as the claim that the Wackenhut-Inslaw-Octopus conspiracy is potentially far more damaging to certain elements of 'government' than was Watergate, then I would agree that the Riconosciuto's have much to be concerned about... but moreso those who could be implicated as a result of the exploding public interest in this unraveling web of corruption. - Wol.] In an August 1992 report from the Brooks Committee in Congress, Michael Riconoscuito is given high credibility for his testimony. The Congress, after reviewing the entire INSLAW case for nearly two years, asked for a Special Prosecutor. The Congressional report also was critical of the Justice Department's COVER-UPS, MISSING RECORDS and TOTAL LACK OF COOPERATION with Congressional requests and subpoenas...
Riconoscuito states in her federal court document that her ex-husband, Steven Peterson "was involved in criminal activity, including, but not limited to, sexual abuse and the conspiracy to murder Fred Alvarez, a member of the Caba- zon Indian Nation in Indio, California. [Also] that Riconoscuito was seeking to enter the California Witness Protection Program because (of) her willingness to testify about the criminal activity of Peterson." The petition also alleges that Peterson beat Riconoscuito while she was pregnant, which had nearly caused a miscarriage and her own death, supported by separate affidavits. When Ricono- scuito was providing such testimony in the past, she sought to have the affidavit sealed and made her allegation in camera (closed session) out of fear for her life and that the Mason County authorities placed her life in jeopardy by putting the affidavit into the public record.
The three year old warrant is based on an action taken when the courts gave custody of the children to the father without notifying Riconoscuito, she had already fled after the beating. The custody order was set aside, however. So another order was issued, this time not only providing the ex-husband with custody but also assigning real estate and insurance entitlements to her ex- husband.
Riconoscuito is claiming there is no valid warrant. On April 7, 1989,
Riconoscuito's ex-husband stated he did not want custody of the children.
Riconoscuito is charging that her arrest was a method to intimidate her present
husband, Michael Riconoscuito. Michael Riconoscuito was scheduled to testify
on November 18, 1992, before the Federal Grand Jury impaneled to investigate
the Inslaw case. Roberta Riconoscuito was arrested in Napa on November 17,
she had been residing here for nearly a year and her children were enrolled in
local schools.