Verification & Authentication

By Jackson Henry

“Trust but verify”, was what former US President Reagan said during the 1980s nuclear arms negotiations with Russia. Reagan’s message brings to mind the importance of verifying information and authenticating documents. In this age of high-speed computers, scanners and precision printing, it is easy for scammers to fool people with “cooked up” papers.

Case in point is the recent bogus Time Certificate of Deposits (TCD) scam by Dugan in an attempt to part a local bank from its cash deposits. As Palau becomes known in the circles of high finance, the more shady deal makers will attempt to fleece money from local people or use officials to fleece unsuspecting investors living overseas.

Leroy King, the Banking Commissioner of the island nation of Antigua, is in the eye of the storm, due to his role in granting “satisfactory” report to international bank examiners when they went to inspect Stanford’s bank in St. Johns, Antigua. The bank examiners are also to blame for taking Mr. King’s report on its face value without verifying the documents and doing better investigation. Today, about 50,000 depositors from 140 countries have lost their life’s savings in Stanford’s bogus bank. If you think the Pacific Savings Bank scandal is big, you have not seen anything yet. Stanford fleeced poor depositors over $7 billion, most of the money went to buy Stanford’s private jets, mansions and support his luxury lifestyle. The depositors in Antigua and other countries, like the depositors of the failed PSB, are mad and crying foul. All fingers now point to Leroy King. Based on my research, the bank inspectors should take the blame. They failed to verify the documents. Mr. King’s scandal has rocked the peaceful island of Antigua.

Leroy King was arrested on June 25, 2009 for his crimes but the damage has been done. Stanford bank’s depositors formed lines outside Stanford’s bank demanding answers. The US FBI agents have descended on Antigua with extradition papers and lawsuits are flying. The lawsuit is seen to bankrupt Antigua. The depositors have formed an organization called Stanford Victim Coalition (SVC) to pressure the Antigua government. SVC is also encouraging tourists to boycott Antigua and form an economic blockade against Antigua’s corrupted officials. If you think the PSB debacle is messy, you have not seen anything yet. Antigua’s tourism industry, banking institutions and international image is under siege.

This is a great lesson for small island nations to be careful when reviewing bank and business documents brought in from overseas. It is important to verify papers that appear to be too good to be true. Officials also must be careful in being too “cozy” with shady characters. If they turn out to be criminals, they can bring down the nation’s vital industries and its image worldwide.

One Comment to “Verification & Authentication”

  1. I will bluntly say this to you, Jackson. No offense, but I will drop the honorifics, as you’ve sold not only your integrity but also Palau’s credibility.

    You are funny! I suppose you’ve learned your lessons with the UKIHL scumbugs now you are qualified to write nonsense lectures to the public.

    How ironic that you are emphasizing the importance of the following pitch you’ve made: “Officials also must be careful in being too “cozy” with shady characters. If they turn out to be criminals, they can bring down the nation’s vital industries and its image worldwide.”

    You knew about the “checkered” background of the very people you got lured by the color of money to broker a land deal for them, at the expense of Angaurian and other landowners. You became an Ambassador of Palau, and I got a good hunch more will be revealed that you have used the good office of Palau to pursue similar business dealings which may come back to haunt you.

    I urge you, in the name of good governance and mere integrity, to take the honor of stepping down from the diplomatic post you’re riding on. You will be free to pursue your personal business interests then without smearing the name of our small but growing island-nation.

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