THE EAGLE HOODED
* * * * *
The 9-11 coverup continues...
Sightings from The Catbird Seat
~ o ~
December 19, 2002
Called Off the Trail?
FBI Agents Probing Terror Links Say
They Were Told, ‘Let Sleeping Dogs Lie’
By Brian Ross and Vic Walter
Two veteran FBI investigators say they were ordered to stop investigations into a
suspected terror cell linked to Osama bin Laden's al Qaeda network and the Sept.
In a dramatic interview with ABCNEWS, FBI special agents and partners Robert
Wright and John Vincent say they were called off criminal investigations of suspected
terrorists tied to the deadly bombings of two U.S. embassies in Africa....
"September the 11th is a direct result of the incompetence of the FBI's
International Terrorism Unit. No doubt about that. Absolutely no doubt about
that," Wright said.
"You can't know the things I know and not go public."
In the mid-1990s, with growing terrorism in the Middle East, the two Chicago-based
agents were assigned to track a connection to Chicago, a suspected terrorist cell that
would later lead them to a link with Osama bin Laden. Wright says that when he
pressed for authorization to open a criminal investigation into the money trail, his
supervisor stopped him.
"Do you know what his response was? 'I think it's just better to let sleeping dogs
lie,'" said Wright.
"Those dogs weren't sleeping. They were training. They were getting ready."
The FBI says its handling of the matter was appropriate at the time.
"Truthfully, if 9/11 had not occurred, we wouldn't be here [giving the interview]," said
Vincent, a 27-year veteran at the bureau until he retired a few days after being
interviewed by ABCNEWS. "Because of 9/11, we're here because we see the danger."
‘You Will Not Open Criminal Investigations’
The suspected terrorist cell in Chicago was the basis of the investigation, yet Wright,
who remains with the FBI, says he soon discovered that all the FBI intelligence division
wanted him to do was to follow suspected terrorists and file reports — but make no
"The supervisor who was there from headquarters was right straight across from me
and started yelling at me: 'You will not open criminal investigations. I forbid any of
you. You will not open criminal investigations against any of these intelligence
subjects,'" Wright said.
Even though they were on a terrorism task force and said they had proof of criminal
activity, Wright said he was told not to pursue the matter.
In 1998 al Qaeda terrorists bombed two American embassies in Africa. The agents say
some of the money for the attacks led back to the people they had been tracking in
Chicago and to a powerful Saudi Arabian businessman, Yassin al-Kadi.
Al-Kadi is one of 12 Saudi businessmen suspected of funneling millions of dollars to
al Qaeda and who had extensive business and financial ties in Chicago.
Yet, even after the bombings, Wright said FBI headquarters wanted no arrests.
"Two months after the embassies are hit in Africa, they wanted to shut down the
criminal investigation," said Wright. "They wanted to kill it."
The move outraged Chicago federal prosecutor Mark Flessner, who was assigned to
the case despite efforts Wright and Vincent say were made by superiors to block the
probe. Flessner said Wright and Vincent were helping him build a strong criminal case
against al-Kadi and others.
"There were powers bigger than I was in the Justice Department and within the
FBI that simply were not going to let it [the building of a criminal case] happen.
And it didn't happen, " Flessner said.
He said he still couldn't figure out why Washington stopped the case — whether it was
Saudi influence or bureaucratic ineptitude.
"I think there were very serious mistakes made," said Flessner. "And I think, it perhaps
cost, it cost people their lives ultimately."
Muslim Agent Refused to Record
Fellow Muslim, Agent Says
Perhaps most astounding of the many mistakes, according to Flessner and an affidavit
filed by Wright, is how an FBI agent named Gamal Abdel-Hafiz seriously damaged the
investigation. Wright says Abdel-Hafiz, who is Muslim, refused to secretly record one of
al-Kadi's suspected associates, who was also Muslim. Wright says Abdel-Hafiz told
him, Vincent and other agents that "a Muslim doesn't record another Muslim."
"He wouldn't have any problems interviewing or recording somebody who wasn't a
Muslim, but he could never record another Muslim," said Vincent.
Wright said he "was floored" by Abdel-Hafiz's refusal and immediately called the FBI
headquarters. Their reaction surprised him even more: "The supervisor from
headquarters says, 'Well, you have to understand where he's coming from, Bob.' I said
no, no, no, no, no. I understand where I'm coming from," said Wright.
"We both took the same damn oath to defend this country against all enemies foreign
and domestic, and he just said no? No way in hell."
Far from being reprimanded, Abdel-Hafiz was promoted to one of the FBI's most
important anti-terrorism posts, the American Embassy in Saudi Arabia, to handle
investigations for the FBI in that Muslim country.
The FBI said it was unaware of the allegations against the Muslim agent when he was
sent to Saudi Arabia or of two similar incidents described to ABCNEWS by agents in
New York and Tampa, Fla. They said Abdel-Hafiz contributed significantly to many
successful terror investigations.
In a statement to ABCNEWS, the FBI also defended the agent, saying he had a right to
refuse because the undercover recording was supposed to take place in a mosque.
But former prosecutor Flessner said that was a lie and the mosque was never part of
"What he [Abdel-Hafiz] said was, it was against his religion to record another Muslim. I
was dumbfounded by that response," said Flessner. "And I had perfectly appropriate
conversations with the supervisors of his home office and nothing came of it."
Closing In on Bin Laden Money Trail
On Sept. 11, 2001, the two agents watched the terror attacks in horror, worried that
men they could have stopped years earlier may have been involved.
The White House confirmed their fears. One month after the attacks, the U.S.
government officially identified al-Kadi — the same man the FBI had ordered Wright
and Vincent to leave alone years earlier — as one of bin Laden's important
Al-Kadi told ABCNEWS he can prove his total innocence, repeatedly denying, from his
office in Riyadh, any connection to bin Laden or al Qaeda.
"Not even one cent went to Osama bin Laden," he said.
But on Dec. 6, U.S. Customs agents, as part of their own investigation, conducted a
midnight search of a Boston-area company believed to be secretly owned and
controlled by al-Kadi.
The company provides computer software to the FBI and other key federal agencies,
which means al-Kadi and his employees could have had access to some of the
government's most sensitive secrets.
Al-Kadi is on the U.S. government's "dirty dozen" list of leading terror financiers being
investigated by the CIA. The federal government says it is pursuing possible criminal
"I was relieved that Customs was picking it up … where we failed big time," said Wright.
"There's so much more. God, there's so much more. A lot more."
Copyright © 2002 ABC News Internet Ventures.
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<<< FLASHBACK <<<
Profits Of Death - Part II:
Trading With The Enemy
Kevin Ingram, A Deustchebank Executive
Guilty Of Laundering Terrorist Money
By Tom Flocco
Edited by Michael C. Ruppert
A Special FTW Series
December 11, 2001
[Editor’s Notes: As disclosed in Part I and in previous stories by FTW, an abnormal
amount of put options - bets that a stock price would suddenly fall - were placed on
United Air Lines and American Airlines in the days before the attacks of September
11th. These were only two of the companies affected by the attacks which experienced
highly suspicious trading in their shares. In Part I we described how put options work.
They are basically futures contracts that obligate the put buyer to purchase the shares
at a price that might be well above the market price when the contract matures. Heavy
purchases of put options before a dramatic drop in a particular share price are clear-cut
indicators of criminal activity based upon insider trading.
Last month we identified the purchasing end of the contract incorrectly as a call. That
person, unhappily obligated to pay too high a price for the shares, is better described as
the put buyer.
Investigative journalist Tom Flocco also revealed dramatic new links to the growing
mountain of evidence that puts the Central Intelligence Agency at the heart of
America s and the world s financial markets. In particular he showed that the firm which
had handled many of the put option purchases on United Airlines -- Deutschebank-Alex Brown -- was once headed by the man who is now the Executive Director of the
CIA, A.B. ‘Buzzy’ Krongard.
I would like to thank and acknowledge British investigative journalist/writer David Guyatt
for first bringing to my attention, Krongard s past relations with Alex Brown.
Part II of this series is easily one of the most damning pieces of investigative journalism
that I have ever seen or participated in. In it Tom Flocco will now reveal even darker
direct connections between the worlds of high finance, terrorism, and intelligence. And
he will reveal some names that will shock you. – Mike Ruppert]
~ ~ ~
Part II -- Trading with the Enemy
From The Wilderness
No member of Congress is publicly, as yet, questioning the hazy areas of "private client
banking" -- repeatedly described by the U.S. Senate and Justice Department as being a
vehicle for drug money laundering -- and apparent conflicts of interest linked to
documented 9/11-related insider trading in United Air Lines stock. The trades were
placed through one of the world s three largest pools of investment capital,
This, in spite of the fact that there is mounting evidence of "real-time" monitoring of
stock market trades by intelligence entities (See Part I at www.copvcia.com). The recent
indictment of a former Deutschebank executive, Kevin Ingram -- who has since pled
guilty to conspiracy to launder drug money and arrange the sale of U.S.-made arms to
individuals in Pakistan and Afghanistan, where U.S. military personnel are currently at
risk -- raises further alarm. Although Ingram was not at Deutschebank when the insider
trades were placed, his history (as well as a star-studded cast of international financiers
connected to the CIA) reveals a frighteningly dark saga showing the degree to which
dirty money influences the Street and the world s financial markets. It also provides
more evidence that the CIA knew of the September attacks in advance.
Ingram is also an acknowledged former protégé of former Goldman Sachs CEO and
current New Jersey Senator, Jon Corzine who sits on the Senate Banking Committee.
He has also worked closely with another former Goldman Sachs, CEO Robert Rubin,
who served as Secretary of the Treasury under President Bill Clinton.
Related to Deutschebank-Alex Brown s role as the broker for the UAL and other
suspicious trades, Ernst Welteke, President of the Bundesbank (Germany s central
bank), said recently that a Bundesbank study pointed strongly to "terrorism insider
trading" in the days leading up to September s carnage in the U.S., according to the
London Observer on September 23, 2001.
But reporter John H. Berlin also made the ominous prediction that "their decision [to
investigate] provided by far the most authoritative support for persistent rumors that the
terrorists could have funded their next strike with huge [insider trading] profits from the
[first] attacks." This seems an unlikely proposition since experts acknowledge that
attacks of the magnitude of 9-11 take years to plan and perhaps millions of up-front
dollars to finance.
Other motives, such as generating funds for covert operations by the CIA, have also not
been ruled out. Nor has the possibility been excluded that Deutschebank, which
handled key but unquestionably suspicious transactions, was generating money for
itself by placing "put" options on United Airlines and then putting the profits back into
its own tills -- perhaps to "prop up" poorly performing divisions at the global banking
This last scenario is a possibility, given the fact that Deutschebank has been
demonstrated in Part I of this series to have intelligence links that might have
forewarned the bank of the attacks.
There is precedent for the "slush fund" theory, as Deutschebank’s U.S. affiliate,
Bankers Trust (BT) pled guilty to it in March 1999. BT diverted $19.1 million from
"unclaimed" funds to prop up profitability at other units, according to a May 30, 2001
New York Times report.
The revelations referred to the growing scope of BT s misuse of unclaimed client funds,
and on the laxity of state and federal bank regulation of BT by claiming "a closer look at
the scheme reveals that it goes well beyond the transgressions the bank owned up to."
And as the investigation was heating up, a high-ranking BT executive with long-time
intelligence ties had to be thinking that it was getting near time to get out of Dodge City.
Times reporter Tim O Brien said that it was the auditors at the NY State Comptroller s
Office who uncovered BT s diversion of funds after noticing that BT s unclaimed
account dropped from $10.2 million in 1993 to only $3.9 million in 1994; so they started
requesting documents which the BT executives subsequently refused to provide.
According to analysis by lawyer Matthew Lee, executive director of Inner City Press, it
was not the primary regulators of BT -- the Federal Reserve (Fed) and the NY State
Banking Department (NYSBD) -- who discovered the fraud. And O’ Brien and Lee
question why the limited-budget NY Comptroller s office detected the scam; and
whether the Fed and NYSBD just swept their findings under the rug to keep them out of
the public eye.
The revelations led O’ Brien to conclude that when the Fed became aware of the scope
of the Comptroller s investigation and what was being turned up, it ordered BT to find a
merger partner (maybe even suggesting Deutschebank) and then took the investigation
out of the hands of the (uncontrollable) NY State Comptroller.
Buzzy the Banker Joins the CIA
According to a CIA press release, in February 1998, A.B. "Buzzy" Krongard, former
CEO of Deutschebank-Alex Brown (the nation s oldest investment banking firm) and
Vice Chairman of the Board of Bankers Trust, left BT and the investment banking
community to join the CIA full time.
As a matter of fact, the Washington Post reported that Krongard helped engineer the
$2.5 billion BT merger with Deutschebank shortly before sliding over to the intelligence
side of the stage.
Buzzy (as his friends call him) had served a long-term "moonlighting" stint as a
"consultant" to a series of CIA Directors. He left his banking position to become
counselor to CIA Director George Tenet just 11 months prior to the final $19.1 million
guilty plea by BT, which was by then a subsidiary of Deutschebank.
Given Krongard s lofty intelligence and investment banking positions, there are no
reports available dealing with important questions concerning his knowledge about such
relevant issues as the disposition of "unclaimed" funds, monitoring of global stock
trades for national security purposes, and wealthy "private client" operations -- let alone
whether the developing investigation into BT fraud had necessitated his, leaving town
just ahead of the sheriff, as it were.
Yet Krongard has since risen to new heights, having received a March 16, 2001 Bush
Administration promotion President George W, Bush to Executive Director, the number
three position at the intelligence agency.
Ingram’s Last Trade
On August 28, 2001, 14 days before the Trade Center attacks, former
Deutschebank senior bond investment trader Kevin Ingram, pled guilty in a $2.2
million dollar money laundering conspiracy, resulting from a government sting
operation investigating the illegal sale of night vision goggles, Beretta machine
pistols, M-16 machine guns with silencers, rocket-propelled grenade launchers,
mortars, surface-to-air missiles (SAMs), TOW anti-tank missiles, and Stinger
missiles, according to court papers examined by the New York Post.
The next day, Alert Global Media, Inc., publishers of Money Laundering Alert, reported
that Ingram "pled guilty on August 28 to money laundering conspiracy as part of an
agreement [plea bargain] with the U.S. government, which will drop other charges and
receive Ingram s testimony against two co-defendants from Egypt and Pakistan. Some
published reports say that both of the other defendants were from (current U.S. ally)
"Bin Laden has long-standing contacts with senior officials [of Pakistan]...," said
Andrew Pearce of the Rand Institute in Washington. The Times of India also reported
on June 17, 2001 that one of three Pakistani middlemen working illegally with Ingram
asked undercover agents about the chances of obtaining components for nuclear
Earlier (July 7) Associated Press reported that "Kevin Ingram, 42, an investment
counselor at the World Trade Center, was indicted June 28 on three counts of trying to
conceal at least $350,000 and one count of violating the Arms Export Act."
"Ingram allegedly laundered $100,000 and $250,000 for federal agents, both times
taking a 9 percent cut before being asked to launder the $2.2 million," according to
court papers examined by the New York Post in a June 15, 2001 report.
AP added that "Ingram is also named in two other counts...for trying to launder $2.2
million in illegal arms sales. Ingram, out on $250,000 bond, faces a maximum of 100
years in prison if convicted of all charges."
Arrested with Ingram were two New Jersey-based Pakistanis who had offered to make
a partial payment for the arms "in the form of heroin," also according to both AP and
the New York Post.
A September 29, 2001 Bloomberg News/St. Louis Post Dispatch report revealed that
Ingram had angered his judge in July by failing to disclose his Swiss bank account.
Bloomberg reported that the Swiss account contained $1,086,000 in cash and 75,800
shares of Carver Bancorp, Inc. worth $650,000.
"He was afraid of the implications, and he just panicked," attorney Richard Lubin told
U.S. Magistrate Judge Ann E. Vitunac at a bail hearing on July 10. Vitunac raised
Ingrams s bond to $1.25 million and ordered him jailed two days later.
Curiously, however, given the terrorism that has transpired, federal agents refused to
divulge the name of the country that would have received the arms according to court
papers examined by the New York Post and others. However, the documents confirmed
that the defendants "referred to their foreign arms buyer...as a well-known, former
military official who wanted to partially pay for the weapons with heroin."
On June 15, 2001, the New York Post, reported that experts said the most likely buyers
connected to the former Deutschebank securities trader and the two Pakistanis were
current U.S. ally Pakistan or Osama bin Laden.
The Associated Press reported on 12/1/01 that Ingram had been sentenced to 18
months plus two years probation and a $20,000 fine on the money laundering charges
in this case. All other charges were dropped in the plea bargain. AP quoted Ingram as
saying at his sentencing hearing, I made a horrible mistake and I did something wrong.
I’m very sorry about it, sorry for my family. Ingram’s sentence will likely be served at a
minimum security facility in Fairton, New Jersey.
Interesting confirmation of the U.S. government s familiarity with banking operations
connected to terrorist activities was revealed in an 11/16/01 AP story by Catherine
In describing events in a Florida prosecution of Egyptians connected to Ingram’s case
she wrote, “Numerous promised wire transfers never arrived, but there were
discussions of foreign bankers taking payoffs to move the money to purchase weapons
into the United States, said [federal] prosecutor Rolando Garcia.” This is yet another
clear indication that intelligence agencies routinely monitor banking transactions in
terrorist-related cases. It has not been disclosed whether Ingram s plea bargain
produced testimony in this case.
In spite of these revelations, no reporter or government official has asked or disclosed
how many times Ingram had laundered money or completed arms shipments before he
was finally nabbed. The extensive array of military hardware in the possession of the
Taliban and al Q’aeda beg this question.
A "Trader’s" Powerful Friends
Deutschebank-Alex Brown s role in brokering the insider trades that scream
foreknowledge of the attacks further provides a common denominator -- given the
activities and histories of key executives at the highest levels of the world s financial
markets. Ingram’ s history speaks of access to power and financial policy making at the
highest levels. Not only was he an associate of Robert Rubin before Rubin left
Goldman Sachs to become Clinton’ s Treasury Secretary, he has had ongoing
relationships with Corzine, who also sits on the Senate’ s Subcommittee on
Securities and Investment -- a subcommittee which should be investigating the insider
Prior to working for Deutschebank, Ingram was a highly placed executive with the
investment bank Goldman Sachs. Both Rubin and Corzine have served as CEOs at
Rubin currently sits on the board of Citigroup -- a bank which has been cited for drug
money laundering by the U.S. government and which (May 2001) purchased a Mexican
bank (Banamex) which has now lost two suits and one appeal over press reports that
its former owner, Roberto Hernandez, was a world-class drug money launderer.
Hernandez currently sits on the board at Citigroup as a result of the buyout. So too
does former CIA Director John Deutch. (See FTW: Vol. IV, No. 3 May 31, 2001 or visit
Kevin Ingram joined Goldman Sachs in 1988 after a brief stint at Lehman Brothers,
and by 1992 was promoted to run Goldman’s Collateralized Mortgage Obligations desk,
overseeing all trading of mortgage and asset-backed securities, according to the New
York Observer. Mortgage trading has long been suspected of being a vehicle for the
laundering of hot money.
In Black Enterprise (BE) magazine s 1992 "Top 25 Blacks On Wall Street," Ingram
was said to have left his (nine-year) high profile Goldman Sachs treasury securities and
options desk position in 1996 to head Deutschebank‘s U.S. mortgage-backed
securities department -- and ultimately their global securities operations in 1998.
BE added that "at Deutschebank, Ingram and his team of 25 professionals structure
and issue securities for an international clientele, including...high net-worth individuals.
These deals can range from $1 million to several billion dollars."
No member of the House or Senate has even broached the subject of hearings to
question either Ingram or recent Deutschebank-Alex Brown Vice Chairman and
current CIA Executive Director A.B. Krongard as to whether they dealt with any
wealthy Middle Easterners or Saudis in particular. Almost all of the September 11
hijackers were of Saudi nationality. Since both men had high supervisory positions
connected to the secretive "private client" operations of Deutschebank, and
Deutschebank handled the insider trades, this is an obvious course of inquiry.
Ingram’s position at Deutschebank became tenuous when the bond market crashed in
1998 and the protégé of Corzine and Rubin likely felt insecure. The tumbling bond
market combined with periodic absences where "he would sometimes go
incommunicado for days -- unusual for someone who ran a trading desk and was
responsible for open positions of $7 billion and more." Deutschebank asked for his
resignation in September 1999, according to the New York Observer.
The Reverend Jackson to the Rescue
From Fox-TV News Bill O Reilly to well-experienced citizen researchers with monikers
like "Uncle Bill, Alamo Girl, and John Huang2" (who post startling, yet often under-publicized findings on grass-roots websites like Jim Robinson s "Free Republic"),
evidence of "shakedowns" related to the race-card continue to surface -- even when
connected to terrorism.
Ingram turned to Rev. Jesse Jackson s Wall Street Project [for help with the financial
settlement of his resignation process]. The Wall Street Project is a Rainbow Coalition-sponsored organization that pushes for increased minority hiring on the Street,"
according to the New York Observer. And with the specter of a racially-charged lawsuit
looming, Deutschebank ultimately settled with Jackson and Ingram for an undisclosed
multi-million dollar figure in February 2000.
According to Observer sources, Ingram then made a contribution to Rainbow Push of
"around" $100,000 -- as a fiscal tribute to his benefactor.
The "Blind Trust" of a Senatorial Patron?
After the February 2000 Deutschebank settlement, Ingram moved on, raising funds for
a soon to-go-bankrupt dot-com company called TruMarkets. Astonishingly, some of
TruMarkets $30 million seed money came from the blind trust of Ingram’s former
Goldman Sachs patron, U.S. Senator Jon Corzine, according to the New York
Observer of 11/29/01.
But federal prosecutors and fellow Senators have never questioned whether Corzine
was aware that investigators had been targeting the former Deutschebank executive at
the same time regarding money laundering of illegal narcotics proceeds (both drugs
and cash) to support the unlawful purchase of U.S. arms to sell to Muslim terrorists in
Pakistan and Afghanistan.
It is also a reach to wonder why Corzine -- who took office in January 2001 -- would not
have been aware of a Federal banking investigation into dealings with terrorists that
had been engineered by a former associate to whom he had been a mentor.
It was during this period of time that an undercover agent began holding a series of
meetings with Ingram in which Ingram let it be known that "funds coming in from
arms sales needed to be laundered," again according to the New York Observer.
Larger questions remain as to whether strings were pulled for Ingram by influential
individuals at a time when the prison population has exploded into a cottage industry full
of poor and middle class Americans convicted for possession or use of small amounts
Most of these people -- like Ingram -- are minorities.
Neither Ingram nor his lawyer would comment or return calls. And no one has
successfully interviewed the prosecutors regarding decisions which influenced what
most would consider to be incredibly soft treatment, given the nature of the charges and
what happened on September 11.
That there is serious interest or enough courage to seek answers about prior
knowledge of the attacks from Deutschebank-linked key players and associates under
their supervision by America s elected legislators is not even remotely assured at
– Tom Flocco is a freelance writer and researcher. TomFlocco@cs.com
Previous stories in this series:
- Part I of this series is located at:
# # #
THE EAGLE HOODED - PART I
~ ~ ~
THE EAGLE HOODED - PART III
WANT STILL MORE STINKING DO-DO?
A Connecticut Yankee in King Kamehameha’s Court
An Octopus Named Wackenhut
APCOA: Vultures in the Parking Lot
Birds on the Power Lines
Birds that Drink from Cesspools
Down the Rabbit-Hole
Nests in the Pentagon
Stealing Your Nest Eggs
The American Red Double-Cross
The Eagle Awakes
The Eagle Hooded
The Indonesian Connection
The Kissinger of Death
The Nests of Osama bin Laden
The Nuclear Nests
The Secret Nests
The Sinking of the Ehime Maru
The Stephen Friedman Flock
The Story of Enron
The Strange Saga of BCCI
The United Defense Industries Matrix
Thorns in the Rose Garden
Uncle Sam’s Gullible Guinea Pigs
Who’s Guarding the Hen House?
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Last Update September 11, 2009, by The Catbird