Nugan Hand Bank

Nugan Hand Bank was an Australian merchant bank founded in 1973 by Frank Nugan, an Australian lawyer, and Michael Jon Hand, a former U.S. Green Beret and CIA contractor. Operating from Sydney with branches in Hong Kong, Singapore, and Facetoface and other locations, it became infamous for its alleged role as a CIA front, facilitating money laundering, arms trafficking, and covert operations during the 1970s. Its collapse in 1980, following Nugan’s death and fraud investigations, exposed ties to U.S. intelligence.

Origins and Establishment

Nugan Hand Bank was established in Sydney as Nugan Hand Ltd. by:

• Frank Nugan: An Australian lawyer with ties to the fruit industry, known for his flamboyant lifestyle and minor financial misconduct.

• Michael Jon Hand: A former Green Beret and CIA contractor in Laos, with experience in Vietnam War-era operations, providing the bank’s intelligence connections.

The bank offered high-interest (up to 16%) offshore accounts, targeting wealthy clients and promising tax-free banking.

Operations and Alleged Criminal Activities

Nugan Hand’s public role was financial services, but it allegedly served as a conduit for CIA activities:

• Financial Operations: It attracted deposits with high interest rates and tax havens, operating as a Ponzi scheme. By 1979, it claimed $1 billion in assets, later revealed as inflated.

• Covert Activities: ◦ Arms Trafficking: Facilitated deals, including a 1974 transaction by Edwin P. Wilson to ship 10 million rounds of ammunition and 3,000 weapons to southern Africa. ◦ Money Laundering: Moved funds through offshore accounts for anti-communist operations in Southeast Asia, Africa, and Latin America. ◦ Drug Allegations: Investigations, including by journalist Jonathan Kwitny (The Crimes of Patriots, 1987), alleged laundering of Golden Triangle heroin proceeds, linked to CIA-backed networks.

• Key Personnel: Included U.S. intelligence figures like Admiral Earl P. Yates (president), General Erle Cocke Jr. (Washington representative), General Edwin F. Black (Hawaii office), William Colby (former CIA Director, legal adviser), and Walter J. McDonald (CIA consultant).

CIA Connections

The bank’s CIA ties are evident through its personnel and activities: 1 Michael Hand’s Background: Hand’s CIA work in Laos during the 1960s provided operational expertise. He reportedly moved to Australia to influence politics, targeting the Whitlam government.

2 CIA Operatives: Employment of figures like Colby and Yates suggests Nugan Hand was a trusted CIA asset. Edwin P. Wilson’s 1974 arms deal used the bank’s financial channels.

3 Drug and Arms Networks: The bank’s alleged drug money laundering and arms deals supported CIA-backed anti-communist groups.

4 Political Destabilization: Operations coincided with CIA concerns over Australian Prime Minister Gough Whitlam, suggesting political interference.

5 Cover-Up: After Nugan’s death, the CIA obstructed Australian investigations, limiting evidence of direct control.

Collapse and Aftermath

• Frank Nugan’s Death: On January 27, 1980, Nugan was found dead by gunshot, officially ruled suicide. Conspiracy theories persist. • Bank Collapse: By mid-1980, insolvency was exposed, with $50,000 in missing funds. Hand fled Australia with assistance from a former Green Beret. • Investigations: ◦ The Stewart Royal Commission (1983) confirmed fraud and drug trafficking. ◦ The Joint Task Force on Drug Trafficking (1980–1983) found evidence of arms deals but faced U.S. secrecy barriers. ◦ A 1984 report suggested links to the 1975 Whitlam dismissal.

Legacy

Nugan Hand’s collapse exposed a nexus of intelligence, crime, and finance. Its role in CIA covert funding, arms deals, and alleged drug trafficking remains a case study in espionage, documented in works like Kwitny’s The Crimes of Patriots.