“Funds from where?” says Harry.
“That’s the question,” says Alex. “Nobody knows. What was more interesting was that when this information surfaced, that there might be US PEPs out there, politicians with numbered accounts, a lot of them seemed to lose interest in the offshore banking issue. Some of the people pounding loudest on the table suddenly got very quiet.”
“Your government at work for you,” says Harry.
“Go on,” I tell him.
“Because the Swiss banks were being hammered by the IRS and the Treasury Department, they decided to use a random selection method for picking several thousand US account holders at one bank headquartered in Switzerland. The identity of the account holders and the account information for the unlucky ones who were picked was to be turned over to the IRS for audit. The account numbers were to be drawn at random in hopes that the fear of exposure would force other Americans to come clean, file returns with the IRS, and avoid enforcement actions should their accounts be selected for audit. But according to Tory, a source working at the bank told him that there were a number of accounts that were never placed in the pool for selection.”
“Who told him this?”
“I don’t know. It happened on our first trip when we were in Switzerland. But I didn’t go to the meeting. He wanted to go alone.
“There’s more,” says Alex. “We were told there was a whistleblower, a man by the name of Rubin Betz. He had been arrested by the FBI for tax evasion and money laundering some years earlier. I can’t remember exactly when. He claimed he was being set up, that the government had built a case against him because they wanted to shut him up. At the time they arrested him, he worked for one of the offshore banks. I can’t remember which one.
“He claimed to have the goods on a number of powerful people, including some American politicians who he said held sizable numbered accounts in banks overseas, accounts that were never disclosed either to the IRS, to Treasury, or on public disclosure forms that are required to be filed under federal law. He said that these people were being allowed to skate while others were being hammered by the government.”
“Did you talk to this guy Betz personally?” I ask.
“No. That’s the thing. He’s in a federal penitentiary, maximum security. Bunking next to one of the ayatollahs who tried to blow up the World Trade Center before they knocked it down. That’s what I was told.”
Harry and I look at each other.
“For a white-collar crime, I’m told that this is unusual,” says Alex. “You’re both lawyers.” He looks over at Harry and me. “You tell me.”
“So if you didn’t talk to him, how do you know all this?” asks Harry.
“The only one Betz was allowed to see was his lawyer. So I talked to him.”
“And he told you all this?” I ask.
I can tell by the body language that Harry is already starting to discount this. Disgruntled lawyer who lost a case.
“He told me that he and Betz tried to cut a deal with the government. They made what you call a proffer. You know what that is?”
I nod.
“Betz and his lawyer supplied a list of names to the deputy US Attorney handling the case, names of people that the whistleblower, Rubin Betz, said held secret offshore accounts. This list went up the chain at Justice. I was told by the lawyer that some of these names you would recognize. Prominent people,” says Alex.
“Did he supply you with any of the names?” asks Harry. “This lawyer?”
“No.”
“Then what happened?” I ask.
“According to Betz’s lawyer, the government not only refused to deal with them, they piled on more charges. They claimed that Betz was not dealing honestly and that he was withholding information from the government. The attorney admitted that his client was no choirboy. But he claimed he wasn’t withholding anything either. He said that the government used this as an excuse to put the man away. It also chilled anyone else with information from coming forward. It was almost as if they didn’t want to know. The lawyer said that Betz wasn’t dangerous. There was no history of violent crimes in his past, what the lawyer called mostly minor white-collar stuff. And no reason for maximum security. He said they charged Betz with things that they never charge in other cases. Stuff they always let slide, especially if you were willing to cooperate, which Betz was.”
“Lesser included offenses,” says Harry.
“I don’t know. Probably. All I know is that they threw the book at Betz,” says Ives.
“Prosecutorial discretion,” says Harry. “Government can do whatever it wants, kick the crap out of their political opponents while ignoring the crimes committed by their friends. Given the current political divide it could become the next national pastime.”
“Betz’s lawyer told me that at sentencing the government asked for a term of fifty years. Even the judge went ballistic. He sentenced him to twelve.”
“He must have done something,” says Harry. “Still, goes to show you, you never want to get crossways with the government.”
“This lawyer, do you have his name?” I ask.
“I do. But it won’t do you any good.”
“You mean he won’t talk to me?”
“He won’t talk to anybody,” says Ives. “He’s dead.”
“Don’t tell me. . a traffic accident?” says Herman.
Ives shakes his head. “Plane crash,” he says. “About a year and a half ago. Just after his client went to prison. He owned a small private plane. They said it was a mechanical problem.”
“Alex, I want you to quit that job right now,” says his mother. “Who are these people you’ve gotten yourself involved with?”
“I thought it was our government. But I’m not so sure anymore,” says Ives.
“Why would they kill the lawyer,” says Harry, “when they went to all the trouble of prosecuting Betz? Why not just kill them both if the mission is to shut them up?”
“That’s a good point,” I say.
“The answer to that may have died with Olinda Serna,” says Alex.
“What?” Harry looks at him.
“It’s how we got on to Serna,” says Ives. “She and Betz knew each other.” It sounds as if we are about to go full circle.
“Betz and Serna used to work together.”
Harry and I look at each other.
“Back in the day when she worked campaigns before she went on Senate staff and later became the hotshot lawyer, I was told she and Betz were an item. They lived together. He handled the money. Her name was on the campaign finance statements. She was paid. He was a volunteer. They ran a business. At least that’s what I was told. He did most of the legwork, the collections,” says Ives. “I also heard that a lot of the checks that came in went through his fingers. Campaign contributions and maybe other things I don’t know about. Some of this is in Tory’s files. He would have more details,” says Alex.
“These campaigns. Do you know who they were for?” asks Harry.
“Members of Congress. She was working in D.C. at the time.”
“Aren’t campaigns usually handled in the district, back home?” I ask.
“Apparently not this stuff,” says Ives.
“Which members of Congress?” says Harry.
“I don’t know. Again, that’s probably something Tory would know. I think he’s got the records.”
“What about the trip to Switzerland?” says Harry. “You told us before that you and Graves went to Switzerland looking for something?”
“We did. Tory had some information. A contact, he said, in Lucerne. We went there to meet with him. But when it was time to see the man, Tory went alone. He told me it would be best. The guy might be less nervous if he approached him by himself.”
“What else did he find out?” says Harry.
“Just what I told you. If there’s anything more you’d have to get it from Tory. When he came back from the meeting he was very tightlipped. It was strange. Tory seemed to have changed about that time. Before then, he shared a lot of what he knew. After that, he seemed to play everything close to the vest. Kept it to himself like maybe he didn’t trust me. Not just me but others as well.”