Published On: Wed, Jun 12th, 2013

World Bank Whistleblower Karen Hudes Arrainged to Federal Court on 13 June

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Christof Lehmann (nsnbc),- On 13 June, two month after her illegal arrest, World Bank whistleblower Karen Hudes has to appear the Superior Court of the District of Colombia. Hudes, who reported improper accounting at the World Bank, and threats against members of the Board of Executive Directors, was arrested for trespass in the World Bank headquarters building, handcuffed, left one hour in a police cruiser outside the building, and thrown to jail but subsequently released  on 13 May.

On 13 June, Hudes, charged with trespass, will ask the prosecutor, since when trespass has become a federal offense and whether the court considers a low-level security guard who illegally removed Hudes   as more competent than the Chairman of the World Bank Development Committee who had issued a security pass for her.

karen-world-bank-320x239Finance Ministers of World Bank member states had reinstated Hudes to settle her bondholders litigation in the US Court of Appeals for the DC Circuit and to qualify for the US contribution to the World Bank capital increase requiring the effects of retaliation to be eliminated under § 7082 of the Consolidated Appropriations Act, 2012 (Pub. L. 112-74).

The previous month, Dr. Marek Belka, who is the Chairman of the World Bank Development Committee and the President of Poland´s National Bank had issued a security pass to Karen Hudes to attend the World Bank / IMF Spring Meetings. Regardless Hudes´ clearance, Julia Pierson, the Director of the U.S. Secret Service barred Hudes from attending the final two days of the three day meetings held 19-21 April.

The question, how the U.S. Secret Service comes to assume authority in this case was enough to raise serious questions about the depth systemic corruption and criminality of the United States government among economists worldwide.

Prior to her arrest, Hudes´had requested the Commander of the District of Colombia´s Second Precinct Police Department, Michael Reese, to ascertain Hudes´employment status with the Chairman of  the World Bank Development Committee and President of Poland´s National Bank, Dr. Belka. Hudes´was arrested anyways. In correspondence with Hudes´the World Bank whistleblower states, that besides being slammed with trumped-up charges, she has also been offered bribes and received thinly veiled threats.

Hudes´ case reveals deep-rooted, systemic corruption at the core of the Bretton Woods institutions. Her case also reveals deep-rooted systemic problems with the US´s legal system, law-enforcement agencies and government crime. Moreover, her case reveals the illegitimate control and influence which a relatively small cartel holds over both the Bretton Woods institutions, US government, as well as the US judiciary and law-enforcement agencies.

Allied Barton, the international security contractor and contractor for security personnel at the World Bank who was  responsible for Hudes´illegal arrest, is owned by members of the same cartel that controls the Bank for International Settlements, 40 percent of the asset value of 43,000 transnational corporations and financial institutions, and 60% of their annual earnings. 

Hudes has worked at the World Bank´s legal department for 20 years and reported state capture by the very megabank and conglomerate which owns Allied Barton.

Although Hudes case is an international scandal which could result in the eruption of a currency war, in permanent backwardation, and in literally grinding global trade to a halt, her case has been held outside of the mainstream media. Hudes´states, that the mainstream media are being controlled by the same megabank and conglomerate that is responsible for the corruption at the World Bank, IMF, and in US government.

Dr. Karen Hudes was fired in retaliation for reporting corruption at the World Bank to the Senate Committee on Foreign Relations.

Hudes subsequently reported to the US Congress threats to reveal private information about the members on the Board of Executive Directors. The Board forced Paul Wolfowitz to resign from the Presidency of the World Bank in 2007 for giving a 35% raise to his girlfriend, Shaha Riza, who also worked at the World Bank.

Hudes also reported to Congress Paul Volcker’s whitewash into the Institutional Integrity Department, which investigated World Bank staff who reported corruption instead of the corruption that it was ostensibly set up to combat. 

Despite the media blackout, state governors, attorneys general and chief justices of state supreme courts are taking steps to combat the corruption. Legislation is pending in fourteen states to recognize gold and silver as legal tender. The Governor in the state of Maryland where Hudes lives, Martin O’Malley, advised Hudes to enlist support from Maryland’s Congressional delegation, Senators Barbara Mikulski and Ben Cardin.

The UK Serious Fraud Office also called the Securities and Exchange Commission to inquire into the World Bank’s accounting irregularities. Hudes reported to UK Parliament that the SEC stonewalled the Serious Fraud Office.

Eric_Holder_official_portrait_smallOn 30 May Attorney General Eric Holder´s Department of Justice urged Judge Karen Howze in the Criminal Division of the District of Columbia Superior Court to arraign Karen Hudes. Hudes argued that she had been reinstated by 188 Ministers of Finance and was entitled to immunity as a World Bank staffmember. Hudes was charged with “unlawful entry”, which is not a federal offense.

Karen Hudes, herself a lawyer, has to return to court on 13 June to argue whether or not the DC Court has jurisdiction to arraign her at all. 

The DC District Attorney, who reports to Attorney General Eric Holder, seems to endow himself with the authority to prevent states’ Finance Ministers from ending retaliation as required by US Congress to qualify for the World Bank capital increase.

Holder is already in contempt of Congress over his failure to turn over documents related to the Fast and Furious scandal, concerning a federal gun-trafficking investigation that began in Arizona in 2009. This is the first time Congress has taken such a dramatic move against a sitting Cabinet official.

The court date is set for 13 June 2013, at 10 a.m. courtroom C-10, 500 Indiana Avenue, N.W., Washington DC.

Follow-up article:

A Correspondence with World Bank Whistleblower Karen Hudes. Justified Optimism ? The First Order of Business.

Related articles:

World Bank Insider Blows Whistle on Corruption, Federal Reserve 

Global Currency War Looming. Corruption at the World Bank Unsettles the Gold Market  

World Bank a security risk to the world order?  

World Bank Whistle-blower. Confidence in the Dollar as an International Currency Is Waning. The End of Bretton Woods ?

About the Author

- Dr. Christof Lehmann is the founder and editor of nsnbc. He is a psychologist and independent political consultant on conflict and conflict resolution and a wide range of other political issues. His work with traumatized victims of conflict has led him to also pursue the work as political consultant. He is a lifelong activist for peace and justice, human rights, Palestinians rights to self-determination in Palestine, and he is working on the establishment of international institutions for the prosecution of all war crimes, also those committed by privileged nations. On 28 August 2011 he started his blog nsnbc, appalled by misrepresentations of the aggression against Libya and Syria. In March 2013 he turned nsnbc into a daily, independent, international on-line newspaper. He can be contacted at nsnbc international at nsnbc.wordpress@gmail.com

Displaying 4 Comments
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  1. peter stevens says:

    This woman has disappeared from AAAAALLLLL media including Alex Jones & Mike Rivero has never even acknowledged her. This was the biggest story out there; the ousting of Rockefeller from the Worl Bank. This is what the cover ups are all about. Here it is 4 days after her trial & we don’t know if she is alive. What happened to the alternate media?

    • nsnbc says:

      Hello Peter Stevens.
      Not from AAALLL media. ;) Not from the really independent one.
      Karen Hudes is well, and she continues her work. She appeared in court to tell that she challenges the courts jurisdiction and has gotten a new trial date. You will be able to read all about it on nsnbc international, at least one day before her next trial date (soon). So get a free subscription at the bottom left of this page.

      I cannot speak for other independent media (and would not necessarily consider those you mentioned independent). nsnbc international will continue covering the case – and if you donate, I could afford to spend even more time on this than I already am. :) To donate, look at the bottom right of this website. Thank you for reading nsnbc international and for your very good question…. Christof Lehmann – Editor.

  2. gary says:

    Reat eye opening news

  3. LC in Texas says:

    Sounds like judge Karen Howze in the Criminal Division of the District of Columbia Superior Court is under someones thumb ?

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