William Joseph Abraczinskas, 38, was found guilty of one count of money laundering and one count of conspiracy to commit money laundering at Federal Court in Miami Feb. 13 following an FBI sting operation.

Abraczinskas agreed to use his Oregon-registered firm, Globalink LLC, to launder cash that an undercover FBI Agent told him belonged to the Mexican drug cartel.

This is the same Globalink that, in April 2000, signed an exclusive agreement with the Montana Department of Commerce to develop its "offshore banking" program, which purports to offer privacy and other asset protection features.

Montana, like a number of other Great Plains states such as North Dakota, is seeking to increase its banking business by offering offshore-type wholesale banking facilities under the "Edge Act" and other legislation.

One of the directors of Globalink is Bruce F. Caputo, a Bronxville, N.Y.-based attorney who served as a member of the U.S. Congress from 1977-79.

Abraczinskas was jointly charged with Leo Malcolm West, a Barbados resident who is Executive Director of the Overseas Development Bank & Trust of Dominica.

While Abraczinskas chose to be tried by a jury, West entered into a plea bargain agreement with the U.S. District Attorney on Feb. 8.

Abraczinskas and West are scheduled to be sentenced on May 9. Both face lengthy prison sentences and fines.

The joint charges followed a sting operation in which an undercover FBI Agent posed as a "consultant" seeking to launder cash for the Mexican drug cartel.

"On Aug. 30, 2001, I along with another undercover FBI Agent met with West in Miami, Florida," according to an affidavit sworn by the Agent that was filed with the court.

"On Sept. 1, 2001, I met with West and his associate, Bill Abraczinskas, in Miami, Florida. I explained to Abraczinskas that I had large amounts of cash that I needed to get into the banking system and wire transfer offshore.

"Abraczinskas advised me that he could use his company, Globalink LLC, to accept the cash, deposit it into a foreign depository and wire the amount to a place of my choosing. This meeting was recorded.

"On Oct. 21, 2001, I met with Bill Abraczinskas in Miami, Florida, I explained to Abraczinskas that the cash I had originated with the Mexican drug cartel and although I was not a drug dealer, I handled their money.

"Abraczinskas stated to me that he could still accept the cash as long as I signed a disclosure form stating that the funds were clean in order to 'cover him.'

"Abraczinskas indicated he would charge a 10 percent fee for laundering the money. I indicated that I had $200,000 for an initial test transaction. This meeting was recorded.

"On Nov. 3, 2001, in a recorded conversation, Abraczinskas and I discussed the laundering of the money which I previously described as drug proceeds. I asked Abraczinskas what I should put on the 'Source of Funds' statement and Abraczinskas said we would decide on a 'plausible story line' when we met.

"On Nov. 14, 2001, in Ft. Lauderdale, Florida, I met with Abraczinskas. We again discussed the source of funds being drug money. I provided Abraczinskas with $200,000 in cash. Abraczinskas accepted the money and was arrested. This meeting was audio and videotaped."

The separate charge against West related to allegations that he agreed to launder funds derived from a purported Ponzi scheme.

In a court filing, West was described as "the former owner and current board member of Overseas Development Bank and Trust".

Abraczinskas was described as "an associate of Malcolm West and is affiliated with the company Globalink LLC in Portland, Oregon".

Research by United Press International shows that, on April 10, 2000, Globalink signed an exclusive contract with the Montana Department of Commerce to develop its Foreign Capital Depository Program.

Under the deal, Globalink would conduct due diligence investigations of all persons or entities applying for a depository charter in Montana and make recommendations to the Commissioner of Banking and Financial institutions whether they should be approved.

Globalink was also given responsibility to investigate and recommend disposal of all complaints filed with the state regarding depository and depositor complaints and conflicts.

In a press release issued by the Montana Department of Commerce on April 26, 2000, the Department's Director, Peter Blouke, said: "Partnering with a company with the international reputation of Globalink will be of significant benefit to Montana. Globalink has extensive experience in the International Banking Industry and is well positioned to assist Montana in creating a new, environmentally clean and potentially very profitable financial industry."

Globalink's President was identified as Doug Hamilton, of Whitefish, Montana, who has supposedly worked as a banker in the United States, Canada, the United Kingdom and Switzerland, while its directors included Bruce Caputo, a former Republican member of the U.S. House of Representatives. The owners of Globalink include Abraczinskas and Mark Meyerdirk, 50, who has an address in Kansas.

Both of them have a checkered past, dating back to long before the Montana authorities deemed their firm to be a suitable business partner.

At least five civil judgments were entered against Abraczinskas at Deschutes Circuit Court, in Bend, Oregon from 1992 to 2000, the biggest award being for $14,328 on Nov. 13, 1992.

That judgment was in relation to unpaid legal fees to Les Swanson Jr. who represented Abraczinskas in another civil lawsuit in Oregon that ended up being dismissed.

Abraczinskas is also currently a defendant in a civil lawsuit that was filed at the U.S. District Court for the District of Oregon on Nov. 22, 2000, by Hambleton Brothers Lumber Co.

The plaintiff alleged that it paid $170,000 to the defendants to purchase timber that was subsequently removed by the defendants before Hambleton collected it.

Several sources also told UPI that, until last year, Abraczinskas owned The Bank Exchange, of Montana, which UPI reported on Jan. 7 was forming and helping to operate sham offshore credit unions. As a result of the article, The Bank Exchange immediately shut down its operations.

Mark Meyerdirk, meanwhile, was among several defendants in a civil lawsuit filed at the U.S. District Court for the Western District of Missouri on May 3, 1995, by Resolution Trust Corp., as Receiver for First Federal Savings Bank and Trust.

The defendants were all former officers, directors, attorneys and controlling persons of First Federal's predecessor company, First Savings Bank and Trust.

The plaintiff was seeking $4.5 million against the defendants, who were accused of fraud, negligence and/or breach of fiduciary duty. The case against Meyerdirk was dismissed on Oct. 29, 1996, following a settlement.

In response to questions, Annie Bartos, Montana's Commissioner of Banking, confirmed the existence of the State's contract with Globalink. "On April 10, 2000, the State of Montana, under a previous administration, executed a contract with Globalink," she said.

However, Bartos said that the state "has not utilized the services of Globalink set forth under the contract" and that it "has expended no funding to Globalink".

"The state of Montana is reviewing the option of terminating the contract with Globalink," she said.

When asked what background checks had been conducted on Globalink's principals, she said: "It is unknown as to the background review conducted by the former commissioner of the Globalink principals."

Only one application has ever been submitted under the Foreign Capital Depository Program. It was filed in 2000 by Michael Potter, a San Diego-based attorney specializing in international banking law. Nearly two years later, though, his application to open the First Depository of Montana Inc. has not been approved and is currently lying idle, said Bartos.

Globalink maintains a Web site at globalinkinternational.com, whose site administrator, Richard A. Sales, of Glasswing Media, Portland, Oregon, is the same as for The Bank Exchange.

"Through the interaction of its separate entities (Globalink Resources, Globalink Financial and Globalink Foundation), Globalink International provides solutions to the legal, financial and operational needs of governmental, business and philanthropic entities around the world," states the site.

The site gives contact numbers and addresses for Globalink in Portland, Oregon; New York, London, Hong Kong and Switzerland, which are all messaging centers.

When UPI called the numbers, we were told on each occasion that Globalink no longer used them.

Bruce Caputo did not return a message left with his law firm in New York.

This article, Special to UPI, is by David Marchant, publisher of OffshoreAlert, www.offshorebusiness.com

Copyright 2002 by United Press International. All rights reserved.

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