Well Dan,

The money gets laundered through security firms and trusts.....even the Carlyle Group....the link was here earlier...will try and find it.
Here's an example of how the illegal money flows:

GLOBAL MASTERS OF FRAUD

Al Martin has plenty of behind the scenes information about the career tracks of government insiders like Frank Carlucci, Richard Armitage and their Blackstone Investment Group.
(Isn't/wasn't Armitage our Diplomat to Pakistan?)

Because of Blackstone's involvement in many high-level high-profile frauds like the Russian Bailout and the Mexican Bailout, one could assume that the company itself was a CIA "cut-out," an actual propretary of the Agency.

"No, it's not," says Martin. "They're just sympathizers. They're an asset of the agency. They're not a cut-out. They're just one of the legion of financial companies, mostly domiciled in Washington or northern Virginia, which the CIA turns to, on occasion, to launder money, or for some other illegal purpose."

And who gave them the green-light to go to Russia for the post-glasnost scams?

"You're talkng about long established relationships that probably existed since the 1950s. Assistant Secreatry of State Richard Armitage and National Security Advisor Frank Carlucci were not young in the mid 1980s," answers Martin.

"They had been involved with their Blackstone Investment Group, and they have other partners, originally Assistant Deputy Secretary of Defense Richard Stilwell, the son of the famous General Stilwell. Stilwell himself was a retired Major General. Stilwell was also very close to Armitage, Carlucci, and Pete Peterson."

"There was a whole cabal of these guys," Martin continues. "They had been involved in all sorts of stuff for a long while. For instance, when we were bailing out the Mexicans in 1994, the new covert thing became to commit frauds in Mexico, against the Brady Plan, not the Brady Bonds themselves, the whole plan of using Brady Bonds to back up Mexican debt. There was a window of about a year, when you could commit fraud against the Bank of Mexico and other Mexican companies. You would buy essentially worthless Mexican bonds, and you could give a Mexican company in a file drawer a face lift, and then you could get Brady Bonds in exchange for them, which were backed by the US Government."

"Or, to back those up, to securitize essentially worthless Mexican corporate securities -- you could take a security that was essentially worth two or three cents on the dollar and make it suddenly worth thirty or forty cents on the dollar in the marketplace. The only thing Brady Bonds are is a collateral guarantee."

"A Brady Bond is essentially a strip-down, what's called a strip or a stripped down US Treasury bond that essentially guarantees the ultimate mature capital value of a note. It does not however guarantee the interest of that note. It only guarantees the return of capital."

For the record, the underwriters of these bonds were powerhouse investment banking firms Goldman Sachs, Shearson Lehman and Merril Lynch. "They were making the one and a half point concession fees on the bonds and they were known as the primary dealer of the bonds," Martin says.

The so-called Russian Bailout followed a similar scenario. "Follow the money, and it will lead you to the new fraud," instructs Al Martin. "The Blackstone Investment Group, even before the Mexican loan deal, was 'in the bag' as it were. Blackstone immediately set up an office in Mexico City because it knew that where there was fraud, there was money to be made. You see it three years later in 1997 when Blackstone set up an office in Mexico."

Likewise there was massive trading activity in the Far East, where the bottom- feeder investment bankers, would arrive to pick up "distressed assets," defaulted stocks and bonds for pennies on the dollar. "That was early in 1998 before things fell apart," says Al Martin, "because they knew things were going to fall apart."

"The Carlyle Group, which is Frank Carlucci, and the Blackstone Investment Group are virtually one and the same. Two different names, but they are virtually the same organization," he continues. "All they do is ride the crest of the waves of various frauds from country to country. Before the so-called Global Financial Crisis of 1998, Blackstone and Carlyle suddenly opened up an office in Jakarta. They didn't have an office in Jakarta before because they were very friendly with President Sukarto. Sukarto gave them all sort of inside capabilities to short, or sell short, the Indonesian rupiah which nobody really had the ability to do because the currency wasn't particularly liquid. They do on a large scale on a multi-billion dollar scale what Richard Hamil does on a multi-million dollar scale."

"They actually purchase a security, let's say US Treasury Bonds, one security with their own money. They then use that security and hypothecate it ten or twenty times to all different types of transactions. Now that kind of fraud is not particularly hard to commit, particularly if you have a trust company under your control or a trust company that's willing to play ball with you. It isnÕt that hard to take the same asset and pledge it twenty times."

Because bank officers don't do due diligence or what? I asked. "You have to understand that the securities don't move anyplace. They're just pledged. They're usually just held in an account in a securities firm."

And one bank won't tell another bank that these assets have been pledged and there's no way of finding it out? I pressed on.

"Not if you got people willing to play ball with you," Al Martin replies. "The people willing to play ball are the security firms in the United States which have long-standing relationships with, not only the CIA, but also this little Eastern Country Club Cabal, as I call it. The firms that have had longstanding intelligence activities and illegal relationships with wealthy Republicans would be undoubtedly Goldman Sachs and Merril Lynch."

You could call them the Insiders' Insider Deals. "Look where Press Secretary Regan came from," Al Martin points out. "He was the chairman of Merril Lynch."