$134B Bond Fraud May Be Mob Handiwork

Italy arrests men with enough US bonds to buy a few countries

(NEWSER) - Last week, Italian authorities detained two Japanese men attempting to cross the border into Switzerland carrying a suitcase stuffed with $134 billion in US bonds. The men are either massive counterfeiters or—even scarier—the fourth-largest creditors of the US Treasury, with enough cash to buy three or four countries. If the bonds are real, writes Bloomberg columnist William Pesek, "the US risks losing control over its monetary supply on a massive scale." More»

US debt office tells conspiracy theorists to calm down

(NEWSER) - Conspiracy theorists, take note: The US bonds seized near the Swiss border with a face value of $134 billion "are clearly fakes," a Washington spokesman tells Bloomberg. Most securities are now issued electronically, only about $105 billion in bonds have yet to be surrendered, and the "Kennedy bonds" found on the two detained Japanese businessmen don't even exist. Had the bonds been genuine, the men would have been the fourth-largest holders of US debt. More»

Crooks wanted forgeries to buy plutonium: Italian paper

(NEWSER) - A minor crime averted in Italy: Police seized $6 trillion in phony US Treasury bonds that a criminal network reportedly planned to use to buy plutonium. Cops grabbed the fake bonds at a Swiss trust company in the city of Potenza, they said yesterday. US experts identified the forgeries and eight men were arrested on charges of counterfeiting, forgery, and loan-sharking, Reuters reports. More»

(NEWSER) - Two Japanese citizens were detained last week after allegedly trying to take $134 billion in undeclared US bonds from Italy to Switzerland, Bloomberg reports. Both countries are investigating the incident. “Italian authorities are in the midst of the investigation, and haven’t yet confirmed the details, including whether they are Japanese citizens or not,” a Japanese official says. More»

It's buying up struggling companies

(NEWSER) - As banks spurn borrowers, Italian mafiosi are lending out their cash stockpiles to profit from the global recession, Bloomberg reports. Long invested in cash-intensive businesses like food distribution, the mafia is using its liquidity to take control of other legitimate businesses—and as a bonus, the three main mob outfits are using the occasion to launder their assets. More»