From The Octopus, Secret Government and the Death of Danny Casolaro
by Kenn Thomas and Jim Keith
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The Mena story begins with a drug dealer named Barry Seal who apparently began smuggling drugs through the airstrip in 1982. The operation continued past Seal's 1984 drug conviction in Miami. As Seal began working deals with the Drug Enforcement Agency and Ollie North's network after that conviction--trading undercover work against the Sandinistas for leniency--a second wave of questionable businesses descended upon Mena. These businesses described themselves variously as aircraft and parts delivery services but stories of drug traffic continued. In 1989, new allegations were made by a former investigator for the U.S. military, Gene Wheaton, that the airfield was also used for commando training. The Arkansas state police investigated and reported to the U.S. attorney but expected indictments were never returned, leading to the suspicion that the Reagan administration could add one more small cover-up to its tally.
It seemed originally that Bill Clinton did not become involved with the story until a pair of students at the University of Arkansas, Mark Swaney and Tom Brown, appealed directly to their then-governor to investigate. The appeal, and another call for a state grand jury from Arkansas' deputy state prosecuting attorney, met a stonewall. When Arkansas representative Bill Alexander met with Governor Clinton, he was told that $25,000 in state money had been set aside to investigate Mena. The amount was slight enough for an effective investigation but even that was never delivered. The prosecuting attorney in Mena's Polk County at the time said he never received the offer from the then-governor's office.
The IRS began an investigation of Barry Seals' operation in Mena after Seal was murdered in Baton Rouge, Louisiana by Columbian drug traffickers, but according to Bill Duncan, a former IRS investigator, the investigators were warned off, causing Duncan to quit and testify before a House committee about all he had learned of money laundering, cover operations and drug smuggling in Mena.
The claim that Clinton was remiss in not investigating Mena was first made publicly by Larry Nichols in a defamation suit against the governor. Clinton had hired Nichols as marketing director for the Arkansas Development Finance Authority (ADFA) but fired him when his alleged contacts with the contras became too apparent, citing the charge that Nichols had made unauthorized phone calls to Central America as a reason for the firing. In Nichols' subsequent lawsuit contesting that charge, he also first publicized the claims of Gennifer Flowers.
Another court case, that of Terry Reed, also added much to the Mena story. In 1988 Reed was charged with postal fraud for receiving insurance money on a false claim. Reed claimed that his airplane had been stolen as part of an Ollie North-styled project called "Projection Donation," wherein "donations" to the contra cause were filed as lost or stolen with insurance companies and then reimbursed. According to Reed, he had no awareness of "Project Donation" at the time of his plane's disappearance, and so reported it as a legitimate loss. The plane reappeared after Reed learned of the Donation project and warned his contacts in the Ollie North network that he would have no part of it. Reed tells his story with co-author John Cummings in Compromised: Clinton, Bush and the CIA, recently published by SPI Books/Shapolsky.
The person who first reported the discovery of what turned out to be Reed's plane to the National Crime Information Center was Raymond L. "Buddy" Young, then working for Bill Clinton as security chief and since chosen by Clinton to head the Dallas regional office of the Federal Emergency Management Agency. Federal Judge Frank Thels later said that Young and an associate "acted with reckless disregard for the truth" in their version of how they came to realize the plane was not stolen, charges against Reed were dropped.
p. 138-139