Editing Walter McDonald (section)

==Involvement with Nugan Hand Bank==
After retiring, McDonald was recruited as a consultant to the [[Nugan Hand Bank]], a Sydney-based merchant bank founded in 1973 by Australian lawyer [[Frank Nugan]] and American [[Michael Hand]], a former Green Beret and alleged CIA operative. The bank had grown rapidly, establishing branches in Hong Kong, Chiang Mai, Manila, the Cayman Islands, and elsewhere, and attracted a roster of former U.S. military and intelligence figures, including former CIA Director [[William Colby]], Rear-Admiral [[Earl P. Yates]], and General [[Leroy J. Manor]]. McDonald’s role was significant; he was described as one of Frank Nugan’s closest advisers, traveling extensively with him and communicating daily. He also opened a Nugan Hand office in Annapolis, Maryland, near Washington, D.C., a move that raised eyebrows given its proximity to U.S. intelligence hubs.

Nugan Hand’s operations were far from typical banking. Australian investigations, including the 1983 Joint Task Force on Drug Trafficking and the 1985 Stewart Royal Commission, revealed that the bank was a front for illicit activities, including money laundering, tax evasion, and drug trafficking. Its Chiang Mai branch, located in the heart of the [[Golden Triangle]], was reportedly established to attract drug money, with connections to at least 26 known drug traffickers. The bank’s financial records showed a shortfall of at least $50 million upon its collapse in 1980, following Frank Nugan’s alleged suicide. Michael Hand, who fled Australia and remains a fugitive, destroyed many of the bank’s records, complicating investigations.

McDonald’s specific contributions included providing strategic advice and leveraging his U.S. contacts to enhance the bank’s credibility. Sources, including Australian police reports and Jonathan Kwitny’s book The Crimes of Patriots, suggest that McDonald’s involvement lent an air of legitimacy to Nugan Hand, which marketed itself as a respectable international bank. However, his role also placed him under scrutiny when allegations surfaced that the bank was a CIA front for covert operations, including laundering proceeds from drug trafficking and funding anti-communist activities in Asia and beyond.