The LSD Connection

Who provided the drugs that swamped the anti-war movement and the college campuses of the United States in the late 1960s? The organized crime infrastructure which had set up the Peking Connection for the opium trade in 1928 -- provided the same services in the 1960s and 1970s it had provided during Prohibition. This was also the same network Huxley had established contact with in Hollywood during the 1930s. The LSD connection begins with one William "Billy" Mellon Hitchcock. Hitchcock was a graduate of the University of Vienna and a scion of the millionaire Mellon banking family of Pittsburgh. (Andrew Mellon of the same family had been the U.S. Treasury Secretary throughout Prohibition.) In 1963, when Timothy Leary was thrown out of Harvard, Hitchcock rented a fifty-five-room mansion in Millbrook, New York, where the entire Leary-Huxley circle of initiates was housed until its later move back to California.26

Hitchcock was also a broker for the Lansky syndicate and for the Fiduciary Trust Co., Nassau, Grand Bahamas — a wholly owned subsidiary of Investors Overseas Services. He was formally employed by Delafield and Delafield Investments, where he worked on buying and selling vast quantities of stock in the Mary Carter Paint Co., soon to become Resorts International.

In 1967, Dr. Richard Alpert put Hitchcock in contact with Augustus Owsley Stanley III. As Owsley's agent, Hitchcock retained the law firm of Babinowitz, Boudin and Standard 27 -- to conduct a feasibility study of several Caribbean countries to determine the best location for the production and distribution of LSD and hashish.

During this period, Hitchcock joined Leary and his circle in California. Leary had established an LSD cult called the Brotherhood of Eternal Love and several front companies, including Mystics Art World, Inc. of Laguna Beach, California. These California-based entities ran lucrative trafficking in Mexican marijuana and LSD brought in from Switzerland and Britain. The British connection had been established directly by Hitchcock, who contracted the Charles Bruce chemical firm to import large quantities of the chemical components of LSD with financing from both Hitchcock and George Grant Hoag, the heir to the J.C. Penney dry goods fortune, the Brotherhood of Eternal Love set up LSD and hashish production-marketing operations in Costa Rica in 1968. 28

Toward the end of 1968, Hitchcock expanded the LSD-hashish production operations in the Caribbean with funds provided by the Fiduciary Trust Co. (IOS). In conjunction with J. Vontobel and Co. of Zurich, Hitchcock founded a corporation called 4-Star Anstalt in Liechtenstein. This company, employing "investment funds" (that is, drug receipts) from Fiduciary Trust, bought up large tracts of land in the Grand Bahamas as well as large quantities of ergotamine tartrate, the basic chemical used in the production of LSD.29

Hitchcock's personal hand in the LSD connection abruptly ended several years later. Hitchcock had been working closely with Johann F. Parravacini of the Parravacini Bank Ltd in Berne, Switzerland. From 1968, they had together funded even further expansion of the Caribbean-California LSD-hashish ventures. In the early 1970s, as the result of a Securities and Exchange Commission investigation, both Hitchcock and Parravacini were indicted and convicted of a $40 million stock fraud. Parravacini had registered a $40 million sale to Hitchcock for which Hitchcock had not put down a penny of cash or collateral. This was one of the rare instances in which federal investigators succeeded in getting inside the $200 billion drug fund as it was making its way around the "offshore" banking system.

Another channel for laundering dirty drug money -- a channel yet to be compromised by federal investigative agencies is important to note here. This is the use of tax-exempt foundations to finance terrorism and environmentalism. One immediately relevant case makes the point.

In 1957, the University of Chicago's Robert M. Hutchins established the Center for the Study of Democratic Institutions (CSDI) in Santa Barbara, California. Knight Commander Hutchins drew in Aldous Huxley, Elisabeth Mann Borghese, and some Rhodes Scholars who had originally been brought into the University of Chicago during the 1930s and 1940s.

The CSDI was originally funded 1957 to 1961 through a several-million-dollar fund that Hutchins managed to set up before his untimely departure from the Ford Foundation. From 1961 onward, the Center was principally financed by organized crime. The two funding conduits were the Fund of Funds, a tax exempt front for Bernie Cornfeld's lOS, and the Parvin Foundation, a parallel front for Parvin-Dohnnan Co. of Nevada. IOS and Marvin-Doorman held controlling interests in the Desert Inn, the Aladdin, and the Dune -- all Las Vegas casinos associated with the Lansky syndicate. IOS, as already documented, was a conducting vehicle for LSD, hashish, and marijuana distribution throughout the 1960s.30 In 1967 alone, IOS channeled between $3 and $4 million to the center. Wherever there is dope, there is Dope, Inc.

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