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Published On: Sun, Jun 2nd, 2013

Trumped-Up Charges and Thinly-Veiled Threats against World Bank Whistleblower Karen Hudes

Christof Lehmann (nsnbc),- On 13 May 2013 Karen 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 for one hour in a police vehicle outside the building, and thrown into jail.

karen-world-bank-320x239188 Ministers of Finance reinstated Hudes to settle her bondholder 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, the Director of the Secret Service, Julia Pierson, overruled the Chairman of the World Bank Development Committee and President of Poland’s National Bank, Dr. Marek Belka. Belka had issued Hudes a security pass to attend the World Bank/IMF Spring Meetings. The Secret Service barred Hudes from attending the final two days of the three day meetings held 19-21 April.

Prior to her arrest, Hudes requested Michael Reese, Commander of the District of Columbia’s Second Precinct Police Department, to ascertain her employment status with Dr. Belka. Besides trumped-up charges, Hudes states to nsnbc international, that she is being offered bribes and that she has received thinly veiled threats.

Besides revealing deep-rooted, systemic corruption at the core of the Bretton Woods institutions, her case is revealing deep systemic problems with the US legal system, law-enforcement agencies and government crime.

Allied Barton, responsible for Hudes´arrest, is a contractor of security personnel for the World Bank. Allied Barton 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. Allied Barton ignored the World Bank’s governing bodies and member countries to prevent Karen Hudes from being reinstated.  

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, the firm whose employees illegally prevented her reinstatement and participation at the World Bank´s spring meetings.

The mainstream media, controlled by the megabank and conglomerate, is still refusing to cover Hudes’ whistleblower allegations of deep seated corruption in the US federal government. 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 press 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.

On 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.

Not surprisingly, also other forms of oppression and intimidation for which the USA is notorious have begun. A Youtube video has been removed because of alleged copyright infringement after more than 13.000 views. Visitors to Hudes’ website receive a security warning.

nsnbc will be following the case closely and see whether the Superior Court of the District of Colombia asserts jurisdiction to create precedence for unlawful entry being a federal offense in a case involving world corruption and internal World Bank governance. The court date is set for 13 June 2013, at 10 a.m. courtroom C-10, 500 Indiana Avenue, N.W., Washington DC.

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 former independent political consultant on conflict, conflict resolution and a wide range of other political issues. In March 2013 he established nsnbc as a daily, independent, international on-line newspaper. He can be contacted at nsnbc international at

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