Michael Jon Hand

Michael Jon Hand (born December 8, 1941) is an American former Green Beret, CIA contractor, and co-founder of the Nugan Hand Bank, an Australian merchant bank notorious for its alleged role as a CIA front for money laundering, arms trafficking, and covert operations during the 1970s. Hand’s intelligence background, mysterious disappearance after the bank’s collapse in 1980, and ties to figures like Frank Nugan and Edwin P. Wilson made him a central figure in one of Australia’s most infamous financial scandals.

Early Life and Education

Michael Jon Hand was born on December 8, 1941, in the Bronx, New York, to a working-class family. Little is known about his early life, but he grew up in a modest environment, displaying a knack for adventure and discipline that led him to military service.

• Education: Hand attended New York City public schools but did not pursue higher education, instead enlisting in the U.S. Army in his late teens. His military training and subsequent CIA involvement shaped his career more than formal education.

Military and CIA Career

Hand’s intelligence career began with his military service and evolved into covert operations for the CIA, particularly in Southeast Asia during the Vietnam War era.

• Military Service (1963–1966): ◦ Hand joined the U.S. Army’s Special Forces (Green Berets) in the early 1960s, serving in Vietnam and Laos. As a Green Beret, he trained in unconventional warfare, counterinsurgency, and intelligence operations, earning decorations including the Distinguished Service Cross, Silver Star, Bronze Star, and Army Commendation Medal for valor. ◦ In Laos, Hand worked with Air America, the CIA’s covert airline, supplying Hmong forces under General Vang Pao in the “Secret War” against the Pathet Lao and North Vietnamese. His role involved coordinating logistics, including arms and supply drops, under the supervision of CIA station chief Ted Shackley.

• CIA Contractor (1966–1971): ◦ After leaving the Army in 1966, Hand became a CIA contract operative, continuing his work in Laos. He operated under the cover of a civilian contractor, managing logistics and intelligence-gathering for CIA operations in Southeast Asia. ◦ In 1967, Hand relocated to Australia, reportedly on CIA orders to monitor or destabilize the left-leaning government of Prime Minister Gough Whitlam, who was critical of U.S. intelligence activities, including the Pine Gap surveillance base. Hand’s move marked the beginning of his integration into Australian society, setting the stage for Nugan Hand Bank.

Nugan Hand Bank

In 1973, Hand co-founded Nugan Hand Bank (initially Nugan Hand Ltd.) in Sydney with Frank Nugan, an Australian lawyer. Hand’s CIA background and covert expertise complemented Nugan’s legal and financial connections, making the bank a vehicle for both legitimate banking and alleged illicit activities.

• Role in the Bank: Hand served as co-founder and a key operational figure, leveraging his intelligence contacts to manage the bank’s covert activities. While Nugan was the public face, Hand oversaw international operations, particularly in Southeast Asia and offshore financial hubs. The bank offered high-interest (up to 16%) offshore accounts, attracting wealthy clients with promises of tax-free banking in the Cayman Islands and elsewhere.

• Operations: ◦ Financial Fraud: Nugan Hand operated as a Ponzi scheme, using new deposits to pay interest to earlier investors. By 1979, it claimed $1 billion in assets, a figure later exposed as fraudulent by Australian investigations.

◦ Arms Trafficking: The bank facilitated arms deals, notably a 1974 transaction by Edwin P. Wilson, a former CIA officer, to ship 10 million rounds of ammunition and 3,000 weapons to southern Africa, likely for anti-communist groups like UNITA in Angola. Hand’s connections ensured the deal’s financial secrecy.

◦ Money Laundering: Nugan Hand laundered funds for CIA operations, moving money through Hong Kong, Singapore, and the Cayman Islands to support anti-communist activities in Southeast Asia, Africa, and Latin America.

◦ Drug Allegations: Investigations, including by journalist Jonathan Kwitny (The Crimes of Patriots, 1987), alleged the bank laundered heroin proceeds from the Golden Triangle. Former employee Neil Evans, manager of the Chiang Mai branch, testified that couriers delivered drug money to Hong Kong, implicating Hand’s oversight.

• Key Personnel: Hand recruited U.S. military and intelligence figures to bolster credibility, including: ◦ Admiral Earl P. Yates (president). ◦ General Erle Cocke Jr. (Washington representative). ◦ General Edwin F. Black (Hawaii office). ◦ William Colby (former CIA Director, legal adviser). ◦ Walter J. McDonald (former CIA Deputy Director, consultant).

• Expansion: The bank established branches in Hong Kong, Singapore, Chiang Mai, Hawaii, and the Cayman Islands, with a Washington, D.C., representative. Hand’s international experience facilitated this rapid growth.

CIA Connections

◦ Hand’s CIA service in Laos, working with Air America and Shackley, directly linked Nugan Hand to U.S. intelligence. His alleged mission to undermine Whitlam aligned with CIA concerns about Australia’s policies.

◦ Edwin P. Wilson’s 1974 arms deal through Nugan Hand, facilitated by Hand, tied the bank to CIA logistics. Wilson’s later claim that his Libyan operations (e.g., shipping 20 tons of C-4 explosives) were CIA-sanctioned suggests Hand’s bank served similar covert purposes.

◦ The presence of CIA figures like Colby and McDonald, combined with the bank’s obstruction of Australian investigations, indicates it was a CIA front, though direct agency control remains unproven.

Collapse of Nugan Hand Bank and Disappearance

On January 27, 1980, Frank Nugan was found dead in his Mercedes-Benz near Lithgow, New South Wales, with a .30-caliber rifle, officially ruled a suicide. The death triggered the bank’s collapse, exposing $50,000 in missing depositor funds and fraudulent accounting.

• Hand’s Disappearance: In June 1980, Hand fled Australia with assistance from James O. “Jimmy” Spencer, a former Green Beret. He was last seen in Sydney, leaving behind a false beard and documents indicating plans to relocate to South Africa or South America. Hand became a fugitive, and his whereabouts remain unknown, though unconfirmed reports suggest he settled in the U.S. under a new identity.

• Investigations: ◦ The Commonwealth-New South Wales Joint Task Force on Drug Trafficking (1980–1983) confirmed drug trafficking and arms deals, with testimony from Neil Evans about Chiang Mai operations. ◦ The Stewart Royal Commission (1983) labeled Nugan Hand a “massive fraud,” finding evidence of money laundering and CIA connections. ◦ A 1984 Australian report suggested the bank’s role in the 1975 dismissal of Whitlam, who threatened U.S. intelligence interests.

Later Life and Whereabouts

After fleeing Australia, Hand vanished, becoming one of the most elusive figures in intelligence history. Speculation about his fate includes: • U.S. Relocation: Australian investigators suspected Hand returned to the U.S., possibly with CIA protection, living under an assumed identity. A 1991 sighting in Bellevue, Washington, was reported but unconfirmed. • Other Theories: Some sources suggest he operated in Central America or Africa, continuing covert activities. No definitive evidence has surfaced, and he remains a fugitive.

Connection to Edwin P. Wilson Hand’s connection to Edwin P. Wilson was through the 1974 arms deal, where Wilson used Nugan Hand Bank to finance the shipment of 10 million rounds of ammunition and 3,000 weapons to southern Africa. As co-founder, Hand facilitated the deal’s financial logistics, leveraging his CIA contacts. Wilson’s later Libyan operations, including shipping 20 tons of C-4 explosives, allegedly involved similar CIA-sanctioned networks, implicating Hand’s bank as a financial conduit. Their shared ties to Ted Shackley, who oversaw CIA operations in Laos, further link them within the same intelligence network.

Legacy Michael Jon Hand’s role in Nugan Hand Bank cemented his reputation as a shadowy figure in CIA covert operations. The bank’s collapse exposed a nexus of intelligence, organized crime, and finance, with Hand’s disappearance fueling conspiracy theories about CIA protection. His story, detailed in works like Jonathan Kwitny’s The Crimes of Patriots and Australian investigations, highlights the murky interplay of espionage and profit in the Cold War era. If you’d like further details on Hand’s CIA activities, his role in specific Nugan Hand operations, or additional sources, please let me know!