More Halperngate - the other side of the Pickard story

[Torsten]

CITY JET-SETTER'S BIZARRE LSD TRIP

HIGH-SOCIETY HEIR BUSTED AS DRUG-RING MASTER

By JEANE MacINTOSH

ACID WASH:Stefan Wathne has been accused of laundering $3 million in LSD money.

February 18, 2008 -- A Harvard-educated Manhattan jet-setter has been pegged as the money-laundering mastermind behind a massive LSD drug ring run out of a Kansas missile silo, The Post has learned.

Stefan Wathne, a 39-year-old scion of New York's socially prominent Wathne apparel family, surrendered to federal agents Jan. 7 as he stepped off a plane at Newark Airport - after three years on the lam.

Wathne is accused in a 2005 federal indictment of laundering as much as $3 million through Russia between 1996 and 2000 for what authorities have described as the most prolific LSD operation in US history.

His arrest marks the latest chapter in a bizarre federal drug case that has unfolded over five years and featured a surreal cast of characters.

In addition to Wathne - an erstwhile financial planner and former American Ballet Theatre trustee - the case has included a prominent Harvard psychiatrist and a deputy director of a UCLA drug-study program.

In another strange twist, singers Sting and Paul Simon helped pay the legal bills for a witness in the case.

The drug ring was cracked in November 2002, when the US Drug Enforcement Agency descended on a decommissioned military silo outside Topeka, which had been converted to a lab capable of churning out massive amounts of LSD.

The drug, formally known as lysergic acid diethylamid and originally used to study personality disorders, is the most potent hallucinogen known. The government banned it in 1966.

The feds arrested the Princeton- and Harvard-educated head of the operation, William Leonard Pickard, a noted chemist who at the time was deputy director of UCLA's Drug Policy Analysis program.

Pickard and an accomplice, California computer specialist Clyde Apperson, were charged with conspiracy and possession to distribute after agents seized enough raw material to produce 16 million doses of LSD, with an estimated street value of as much as $160 million.

The arrests put Wathne on the DEA's radar.

A Reykjavik-born Icelandic national whose family later put down roots here, Wathne was introduced to Pickard through Dr. John Halpern, a leading psychedelic researcher from Harvard's prestigious McLean Hospital.

Halpern, records show, was paid $319,000 by Pickard from 1996 to 1999 - the same years Wathne is charged with laundering money for Pickard.

Testimony at Pickard's drug trial suggested that Halpern was paid for the Wathne introduction.

Wathne's alleged role in the LSD ring was to take drug money, cycle it through Russia and then send it back to Pickard, partly in the form of a "donation" to his UCLA research program, according to testimony at Pickard's trial.

After the silo bust, Halpern made a deal with the feds and ratted out his friends.

He also rolled on a one-time New Mexico business partner, Alfred Savinelli, from whom Pickard had bought chemicals and glassware to make LSD.

Savinelli, whose company, Native Scents, sells botanicals and oils, was called as a witness. He testified that part of his legal bill was paid by Sting and Paul Simon, whom he counted as friends.

The two entertainers have declined to comment on the case.

Pickard was convicted in 2003 and is serving multiple life sentences.

Wathne had by then vanished from the New York scene and was reportedly living in Russia. Indicted in San Francisco federal court, he was declared a fugitive by the DEA.

A smooth-talking bon vivant fond of Rolex watches and expensive foreign cars, Wathne was well-known in social circles from Manhattan to Moscow.

In addition to being an ABT trustee, he sat on the board of the American Russian Youth Orchestra, which counts Laura Bush as its honorary chairwoman.

Wathne's 60-something mother, Thorunn, and her sisters, Soffia, 51, and Berge, 59 - a photogenic trio nicknamed "the triplets" and known for dressing alike in couture outfits at social functions - are fixtures on Manhattan's charity and party circuit.

Avid sportswomen, the three women made a fortune with their luxury outdoor and equestrian-related apparel and accessory firm. They sold to Bergdorf Goodman and I. Magnin and had a namesake boutique on West 57th Street that boasted Venetian plaster walls, a fireplace with a hand-carved limestone mantel and chandeliers made of antlers.

The firm also produced high-end luggage for designer Ralph Lauren.

Stefan Wathne headed the Moscow Institute for Advanced Studies, a nonprofit group run out of the West 56th Street Manhattan headquarters of the Wathne sisters' apparel business. The charity was staffed by Wathne employees, tax records show.

Wathne - who also used the alias Gunner Stefan Moller - was arrested in New Delhi on Sept. 24, 2007. Authorities here were trying to extradite him from India when he voluntarily agreed to return to the United States.

His arrest has sparked a new round of headaches for his family.

The mega-wealthy Wathne women recently sold off an $8 million oceanfront home in Nantucket. In 2001, they shuttered the Manhattan boutique.

They still hold millions in property around the city and own homes in Rye, Westchester County, and in Key Largo, Fla., records show.

On Jan. 10, Wathne pleaded not guilty to the money-laundering charges.

He surrendered his passport and was freed on $5 million bond to the custody of the Wathne sisters. Part of the family's vast real-estate holdings - including six apartments on Central Park South - were put up as collateral.

If convicted, Wathne faces up to 20 years in the slammer.

An assistant for the Wathnes referred calls to a lawyer, who did not return calls.

Outside the family home in Rye, a chauffeur said Stefan Wathne isn't talking.

Additional reporting by Brigitte Williams

[AndyAmine.]

What a epic series of events. Im sure itll end up as a movie because it already sounds like one.

[gerbil]

thanks for sharing that T, much appreciated, nice follow up to the TER article.

Now to put on some simon and garfunkel

[sweeet]

http://www.law.com/jsp/article.jsp?id=1202422821742

A Money Laundering Case With All Kinds of Dirt

Dan Levine

The Recorder

July 8, 2008

When a case involves such spectacles as a fashion heir charged with money laundering, not to mention a former missile silo converted into an LSD factory, the legal fireworks usually live up to the occasion.

And so San Francisco Bay Area attorneys for Stefan Wathne, international socialite and indicted heir to the Wathne sportswear and accessory fortune, supplied their own holiday explosions last week.

Cristina Arguedas of Arguedas Cassman & Headley and solo practitioner Karen Snell accused the feds -- specifically former Assistant U.S. Attorney-turned-Fenwick & West partner Christopher Steskal -- of prosecutorial misconduct, saying he did not tell grand jurors that evidence they were considering had been obtained in Russia through coercive means.

In this instance, though, some legal observers think it will be very difficult for the defense motion to succeed.

Northern District of California prosecutors accuse Wathne of laundering money on behalf of Leonard Pickard, who at one point worked as the assistant director of University of California at Los Angeles' Drug Policy Analysis Program, according to court filings. But Pickard also ran a side business: constructing an LSD factory in Kansas in an old missile silo. Pickard is currently serving two life terms.

An Icelandic citizen, Wathne lived in New York and Moscow. His family leads the kind of life whose details are salaciously reported by the New York Post: Wathne's mother and two aunts were known in haute couture circles as the "triplets" because of their tendency to wear the same outfit to fashion shows.

Wathne met Pickard through a mutual friend, who eventually ratted them out. According to defense filings, the government's theory is that Pickard funded his own $140,000-a-year position at UCLA by giving the money to Wathne, who passed it through Russian businessmen, who in turn sent it to the university as "donations."

Steskal and a team of agents traveled to Moscow in 2003 to interrogate Wathne and other witnesses. They got help from the Russian police, the defense says.

In the motion to dismiss, the defense lists the constitutional protections that are lacking in Russia. And because Steskal sat in on interrogations in which the witnesses could be criminally prosecuted if they refused to cooperate, the defense argues that Steskal had a duty to disclose those circumstances to grand jurors.

Though Arguedas acknowledges she cannot cite a case directly on point, she says it is because these facts are so unique.

"We are not aware of any other case where the United States has relied on the Russian security apparatus to this extent, where the U.S. instigated, and stood by, and benefited from this level of prosecutorial misconduct," Arguedas said in an interview.

Steskal declined to comment, and a spokesman for the U.S. Attorney's Office did not respond to a request for comment. Assistant U.S. Attorney S. Waqar Hasib is now assigned to the case.

Given the current environment regarding terrorist threats, judges have been more likely to defer to prosecutors on the behavior of foreign authorities, said Stanford Law School's Mariano-Florentino Cuellar.

"This whole fabric of law -- what is coercive -- is becoming more permissive for the government," said Cuellar, who teaches international criminal law.

In addition, this defense doesn't involve allegations of torture, which may make the Russian tactics seem less extreme for a judge.

But the case is before Chief Judge Vaughn Walker, who in his rulings on warrantless wiretapping has shown his willingness to buck the Justice Department.

Wathne was on the lam for more than two years after the grand jury indicted him in 2005, and he was arrested while traveling in India last year. As part of the deal to bring him to the United States, Arguedas preserved the right to challenge the validity of the extradition, which she is doing. All of the motions to dismiss are scheduled for hearing before Walker next month, which will feature, via video conference, a former chief judge of India's supreme court as a defense expert.

[meme]

I was sitting next to Mark MacCloud in Switzerland when the 'Halperngate' thing blew up. I, and my friend Mydriasis (ATL PSY), were featured promanently in the video that came out of this.

I talked with John Halpern a bit, off camera. He was the portrait of a guilty man! During the DEAs questioning he even gave complete disclosure on his wife regarding misdemenor shoplifting charges! As people questioned him, he continued to say that he couldn't talk anymore because he throat was dry. My friend and I slipped away at one point to give him a glass of water, and, when we returned to give him the glass of water, he shouted something along the lines of "Aha! I know what you are trying to do!" He took the glass of water carefully, and gave it to a friend, who took it off and away, carefully. He thought we were trying to DOSE HIM!

In the US, husbands and wives can never be made to testify against one another, btw. His self-admitted testimony against his wife could not be compelled by any court! He also said that he disclosed any email or private conversation to them when asked! NOTHING was sacred!

So, I guess John and I might not ever be friends . . . I mean, even living a legit life, who wants ALL of their secrets available to anyone?

[apothecary]

Wow meme with the inside scoop.

This story has been developing for a fair while now, if it isn't too crass, do you mind if I ask why you are only making this stuff public now?

Thanks for the info!

[meme]

Wow meme with the inside scoop.

This story has been developing for a fair while now, if it isn't too crass, do you mind if I ask why you are only making this stuff public now?

Thanks for the info!

When DMTWORLD fell apart, I got a little bitter on the online entheo scene. I took a few years of sabbatical. A little while ago, I started feeling the need to share what I've learned and experienced. I've spent the last few years being a busy little bee ;) , studying, and acquiring a foothold as a legitamate researcher in the psychedelic field.

It's tough trying to remain professional in a field like this!

Really, I have never been as glad as I was that day to miss the Shulgins! While the nature of the lecture that Mark spoke up after escapes me at that moment, I don't think that I'll forget that day for some time!

Really, I wasn't sure if I might have to work with Dr Halpern. He did some real awesome work for the community, and I wish he had the courage to stand right. As an American, I pretty much have to jump for any oppurtunity to be in this field! It is not an easy thing to get one's foot in the door. But I really don't feel that even the most strait laced researchers want much to do with Dr Halpern anymore. It would be a little suicidal for a young researcher to work with him! Dr Andrew Sewell can manage working with him, but I am no Dr Sewell! AFAIK Strassman and he are not in collaboration at this time.

But, I guess, I just wanted my first post after about 3 years of registration to be *special*

[sweeet]

http://www.marinij.com/marinnews/ci_10017899

Trafficker's alleged aide claims Russian coercion

Gary Klien

Article Launched: 07/27/2008 10:59:15 PM PDT

A man charged with laundering money for William Leonard Pickard - a former Mill Valley man convicted of running a massive LSD lab inside a defunct Kansas missile silo - says his indictment should be dismissed because federal authorities relied on witness statements coerced by Russian agents.

Stefan Wathne, a wealthy New York-raised Icelander, was arrested in New Delhi last year on a federal grand jury indictment from San Francisco. The indictment charges Wathne with conspiring to launder the proceeds from Pickard's LSD lab between spring 1996 and November 2000.

Pickard, a Harvard graduate and former drug policy researcher at the University of California, was convicted in 2003 of possession with the intent to distribute and conspiracy to manufacture and distribute LSD. Pickard was sentenced to life in prison; an accomplice, Sunnyvale resident Clyde Apperson, was sentenced to 30 years.

Pickard and Wathne, who moved to Moscow after graduating from Harvard, met in the mid-1990s through a Harvard friend. Unbeknownst to Wathne, according to defense attorneys, Pickard agreed to pay the mutual friend a 10 percent commission for any drug proceeds he could launder through Wathne.

"In 1999, Pickard became the assistant director of UCLA's Drug Policy Analysis Program," Karen Snell, an attorney for Wathne, wrote in a recent motion. "It is the government's theory that Pickard funded his position by giving approximately $140,000 to Stefan Wathne, who then gave it to two Russian businessmen, who sent it to UCLA as 'donations' to support Pickard's work."

As federal investigators pursued the case, they contacted Russian authorities for their assistance in locating Wathne and interviewing potential witnesses. According to defense attorneys, a team of U.S. investigators traveled to Russia and allowed Russian agents to detain and interrogate Wathne and numerous witnesses according to their own harsh and coercive standards.

"The use of beatings, intimidation and blackmail to gain confessions is widely understood to be common throughout Russia," Snell said. "As a result, abuse is both feared and expected by nearly every Russian who finds himself in police custody in whatever capacity."

The American investigators used the information gathered by the Russians to prepare their case for the U.S. grand jury without telling the jurors how it was obtained, according to Wathne's lawyers. As a result of this prosecutorial misconduct, defense attorneys said, Wathne's constitutional rights were violated and the indictment should be dismissed.

A hearing on the motion to dismiss the indictment is scheduled for Aug. 12 before Chief Judge Vaughn Walker of U.S. District Court in San Francisco.

"We have no comment," said Josh Eaton, a spokesman for the U.S. attorney's office in San Francisco.

Wathne, whose family owns a prosperous high-end apparel company, is free on $5 million bail.

[sweeet]

http://www.law.com/jsp/article.jsp?id=1202424725281

Federal Judge: Socialite Shouldn't Have Been Extradited From India

Dan Levine

The Recorder

September 23, 2008

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Stefan Wathne

Image: Jason Doiy / The Recorder

International socialite Stefan Wathne shouldn't have been extradited to the United States on money laundering charges, according to a federal ruling released Monday.

The heir to the Wathne sportswear fortune was nabbed last year on an American indictment when he traveled to India from his home in Russia. Federal prosecutors then agreed to let Wathne litigate extradition in San Francisco district court.

Since money laundering was not a crime in India at the time prosecutors allege Wathne broke the law, Indian precedents would have prevented him from being brought here, Northern District of California Chief Judge Vaughn Walker found Monday.

But Wathne isn't totally in the clear. Walker didn't dismiss the indictment, and has asked for further briefing on the remedies.

It's possible Wathne, who is free in the United States on $5 million bail, may need to dust off the list of countries that don't have extradition treaties with the U.S. Walker could return Wathne to India. From there, Wathne would just need to steer clear of countries with stronger treaties.

"Needless to say, the defendant's options may be quite limited," Walker wrote. "But, dismissal of the indictment is not appropriate."

Prosecutors accuse Wathne of laundering money on behalf of Leonard Pickard, who at one point worked as the assistant director of UCLA's Drug Policy Analysis Program, according to court filings. Pickard also ran a side business: constructing an LSD factory in Kansas in an old missile silo. Pickard is currently serving two life terms.

Wathne met Pickard through a mutual friend, who eventually ratted them out. According to defense filings, the government's theory is that Pickard funded his own $140,000-a-year position at UCLA by giving the money to Wathne, who passed it through Russian businessmen, who in turn sent it to the university as "donations."

After his arrest in New Delhi, Wathne's lawyers and the Justice Department came up with a deal, in which Wathne would return to the U.S. before having his case decided by an Indian court. Instead, the Northern District of California was called upon to decide Wathne's extradition rights under Indian law.

In a unique hearing before Walker last month, the defense called a former chief justice of the Indian Supreme Court, as well as that country's former solicitor general, to testify via videoconference.

And while Assistant U.S. Attorney S. Waqar Hasib contended that money laundering was a crime in India at the time of extradition -- and thus Wathne could be removed -- Walker went with the defense experts' take.

Whatever Walker's decision on remedies, Wathne's attorney, San Francisco solo Karen Snell, said she expected the government to ask for a stay of his ruling, pending an appeal to the 9th U.S. Circuit Court of Appeals. The defense would then cross appeal, asking for an outright dismissal.

A spokesman for the U.S. Attorney's Office declined to comment.

But Snell still holds out hope of persuading Walker to toss the case.

"I'm firmly convinced he has the authority to dismiss the indictment," she said, "and that's the remedy he should choose. And I need to do a better job providing him a legal framework for that decision."

The defense also tried to get the indictment voided by arguing that former Assistant U.S. Attorney Christopher Steskal committed misconduct. Steskal, Snell argued, should have told the grand jury that the government was presenting evidence gathered in Russia, a barren land in terms of civil liberties.

Walker didn't go for it.

"While defendant presents evidence of severe injustices in the Russian law enforcement system as a whole," he wrote, "there is very little evidence of coercion of the witnesses who provided testimony used in grand jury proceedings in this case."