FD-36 (Rev.

8-29-/15)

TRANSMIT VIA:
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I'll!
•
CLASSIF!CAnON:
n Teletype o Imin~diate o TO!' SECRET
o Facsimile o Priority o SECRET
IZJ AIRTEL o Routine o coNFiDENTIAL
o UNCLAS EFT 0
o UNCLAS
Date 9/3/91

1 TO : SM:::, WMFO (N'ilMHA) (29B-WF-171994)~ (RUC)

FROM : SAC, SAN FRANCISCO (196A-SF-93255) ::__

3 SUBJECT : HIDDEN INTEREs'r,

""C"":i""J.:"1':..,;_r_A_s_E_3_8
. ~-~ ;" ~ ~,'
5
FIF, FAG;
6 00: WMFO

7 Title changed add HIDDEN INTEREST, MAJOH CASE 38.

g RE Teletype from DIRECTOR FBI to ALL FIELD OFFICES

dated JUly 26, 1991.
9
Enclosed for WMFO-NV!1RA are: one COPY of letter
10 fromC ~ a copy of CONNIE C. ARMSTRONG, JR. 's
petition dated February 16, 1989 and a copy of the September
11 3, 1991 Oakland Tribune article referencing BCCT. L-"~
,

This office has received a letter froml I

I ---~alleging
financial connections between HAMILTON TAFT
13
COMPANY, r ---=-:l CONNIE C. ARMSTRONG. JR. J I
14
c= BANK OF CREDIT AND COMMERCE, INTERNATIONAL (BCClY.
I and the
The letter
" ',' ,'"
15 was supposedly mailed to your division in August of 1991.

16
, ! ; ,',
,
'
i

t,·,

19 wr1io (NVMRA) (Enc'i'osures 3)

2 - "
2 - SAN F'RANCISCO (1 - 29B-WF-171994; 1 - 196A-SF-93255 Sub F)
20 HLH/wlh
i '.' i
21
 • •
C:======:J, is one of the complainants of our
investigation of HAI1ILTON TAFT COMPANY (BT). liT is a payroll
tax seL-vice company that calculated various local, state and
federal payroll tax liabilities and made payment to the
various governments for clients for a small fee and temporary
short term use of the tax deposits (float)b HT grossed over a
$3 bi:"li8~ dclla:t"s in ~ca;'l' payments in 1990 ..

It has been alleged ttat liT gjfiCerS since being

"',--
purchased by MAXPHARl'lA (o1tmed by in 1988 have been
using the clients -tax deposi"l:.s in"t.o liT for person.al gain and
did not ma]ce 'che appropriate ta;( paymen'cs as stipulated in
contracts between HT and HT's clients. As of March of 1991 HT
has been :forced into involun'cary ban]cruptcy by the clients of
HT and a wire/mail fraud investigation is on going by this
office~

I:,,: .", I was fired as comptroller from liT in

February of 1991 :'for an alleged cocaine habit. I ::"Jd1, ,:' I is
currently seeking to collect a reward from the Internal '
Revenue Se,rvice (IRS) for any tax losses that were prevented.
EP .1.0 lllis point the ~~l gov.,grnment has E9-t re,?ognized ~y , ,
.!:illf losses ~ t..o the non-pavmej1t ..ELHT of HT's cllent taxes.'
The unpaid tax liabilities are being applied to the taxpayers
themselves0 HT was a agent for their clients and the ultimate
responsibilities for unpaid taxes is believed to fall upon HT
clients.
Collected through this division's investigation of
HAMILTON 1~AFT COMPlLWY and
enclosed for your examination is
Afu~STRONG, JR.'s petition to the Dallas County court dated
2/16/89 to apply for a temporary restraining order, ex parte,
permanent injunction and imposition of constructive trust of
all the assets of MAXPHARMA, INC. (MP) and/or HAMILTON TAFT
COMPANY (HT). In this petition ARMSTRONG JR. testifies to the
parties involved with MP up until February 1989 and he
testifies in detail to the various ways whichl I
I =:J it has been alleged, controlled NAT~ONAL BANK OF
WASHINGTON) "loot" the assets of HT.
lI.RMSTRONG, JR. took over ownership control of HT in
March of 1989 through a settlement of the above court case
withl ==:J lI,RMSTRONG, SR., chairman of nO'" defunct PREMIER
BANK in Texas, was convicted of money laundering in 1988.
I

2
 • •
The appointed trustee of HT that is currently
presiding oVer HT today during this bankrup"ccyhas stated that
there is a $85 Million dollar shortfall of taxes due that
canno't be paid by HT (client deposi'cs were expended in some
other way). Of this $85 million, $15.9 million " ... was
transferred ou'e of Hamilton Taft during the Maxphanna era
before Armstrong acquired Hamilton Taft on March 29, 1989",
ARMSTRONG' JR. has channeled most of the missing $69.1 million
dollars through a myriad of shell companies under his control
in Dallas, Texas~ The following is a list of those companies
in approximate chronological order;

DRESDNER ENTERPRISES, CHASE DEVELOPMENT

CORPORATION, CAL-PACIFIC ~~NAGEMENT CORP, SUISSE TEXAS, INC.,
THE REMINGTON COMPANIES, INC., CCA HOLDINGS, INC.,
IU,IGHTSBRIDGE COMPANIES, INC., WINTHROP REALTY COMAPNY,
DRESDNER PETROLEUM INC., DEI INC, and PARKER AUTOMOTIVE INC.
(LA) •

The trustee also stated that he has found records

that indicate $3 million dollars of unsecured personal loans
'1:0~;,j;l, I in 1988 (during MAXPHARMA ownership). Also the
trustee has stated that $6~1 million dollars transferred to
I '0',.; 0 Iduring the ARMSTRONG era at HT. San Francisco finds it
peculiar that ARJ"1STRONG would grant loans tole,' c' lafter
stating in sworn testimony in his statement to the court that
I ] had " ... breach of his duty to pay the promissory note
when due forms a basis of the causes of the action asserted
against him in this lawsuit". San Francisco believes that i~
I ~inancedl I purchase of ~~XPHARMA in December of
1987.
There is ~ b~ Fraud invesTjgatiqn nnw sti~ in the
early stages concernlngl-- ~ J San
Francisco has yet to verify the allegations in the enclosed
article thatl Ihad defaulted on three loans from BCCI. If
this office can be of any further assistance or any more
detail desired by VMFO on these twosrases rs they may nA)""t-aj~
to BCCI contact SA L ----1 or SAL ..-J
L~

3
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