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	Angel of Death Gives Deposition to Justice 
		Department in Inslaw Case

		     by J. Orlin Grabbe

	On April 2, 1996, Charles S. Hayes--retired CIA 
operative, Air Force Colonel, and Kentucky salvage 
dealer--was deposed by the U.S. Department of Justice 
with respect to the Inslaw case [1].  The attorney for the 
Department of Justice, Beth Cook, seemed ill-prepared for 
what turned out to be a brutal assault on the integrity of the 
Justice Department itself, which Hayes accused of lying, 
cheating, and stealing.

	Hayes has recently acquired the Internet label of 
AOD ("Angel of Death" or "Angel of Doom") due to his 
efforts in encouraging the early retirement of corrupt 
politicians. "Do you know the Angel of Death?" Cook 
asked at one point.  "I know him well," Hayes replied.

	Hayes has previously testified with respect to the 
Inslaw case, most notably before a Chicago grand jury in 
August 1992.  Hayes' extensive testimony in that case was 
redacted under the National Security Act.  The reasons for 
the redaction are not known, but apparently the grand 
jury's questions lead far afield from the principal topic of 
the Justice Department's apparently illegal sales of Inslaw's 
PROMIS software, and got into topics related to a tangled 
web of  freelance arms dealers, drug runners, assassins, 
and government miscreants--whose murky and disparate 
interrelationships Hayes dubbed "the Octopus"--a term 
adopted and popularized by freelance journalist Danny 
Casolaro [2], who used Hayes as a frequent source of 
information.  Hayes is said to have testified to detailed 
criminal violations of U.S. law by employees of the 
Department of Justice and other government agencies.         

	Although Hayes will not discuss his grand jury 
testimony, other sources say that with respect to the Inslaw 
case, he testified to a meeting at which he was present in 
Brazil in the course of which Earl Brian called Attorney 
General Ed Meese (then in the United States) to get 
approval for the sale of PROMIS to the Brazilian 
government.  Hayes is said to have backed up this 
assertion with an affidavit of Brazilian President Joćo 
Figueiredo.  

	Earl Brian, who is said to have marketed the 
PROMIS software to intelligence agencies around the 
world, is currently under indictment in California. The 
indictment concerns ten of millions of dollars of fraudulent 
lease transactions made while Earl Brian was Chairman of 
the Board and Chief Executive Officer of three separate 
companies: Infotechology, Financial News Network 
(FNN), and United Press International (UPI).  

	Early in the April 2, 1996, deposition, Justice 
Dept. attorney Beth Cook enjoined Hayes not to discuss 
his grand jury testimony.  Subsequently, however, she 
began to question him about it.  "Are you trying to entrap 
me?" Hayes asked.

	In the five-hour deposition, Hayes declared he was 
not present to help Inslaw, nor to help any government 
agency which was pirating software.  "I'm here to help the 
people of the United States, whom I hold in esteem second 
only to my God" he said, and admonished Cook for what 
he called her lack of preparation, laziness, and wasting of 
taxpayers' money.  He asked her if there was "some 
medical reason related to the time of month" for her 
"arrogance" and "obstinance". 

	Hayes asked to be reimbursed for expenses related 
to the Justice Department subpoena.  "We don't pay for 
subpoenas," Cook said, although in fact Federal law 
requires that expenses incurred in response to Federal 
subpoenas be reimbursed.

	Hayes pointed out that U.S. attorney Allen Lear 
had threatened to bring the FBI down on him on January 
18, 1996. "I don't think that's legal," Hayes said.  Anyway, 
"the FBI is not a chartered organization."  

	(A check with the Library of Congress shows that, 
in fact, the FBI is not chartered.  As such, laws related to,  
and convictions based on, "lying to the FBI" are apparently 
not valid, for no such chartered organization exists.  The 
correctness of this argument, based on lack of charter, has 
been upheld in court cases involving the FBI in 
Massachusetts and Vermont.  In addition, since the FBI, as 
a subdivision of  the Department of Justice, is larger than 
the DoJ itself,  Federal law bars FBI employees from 
receiving benefits.  FBI agents who currently receive 
benefits are thus apparently in violation of Federal law, 
and could properly be required to return the money.)  

	Hayes accused the DoJ of theft, saying they owed 
him money stemming from the largest gem seizure in U.S. 
history.  (This appeared to be in reference to Indictment 
No. 86-44, U.S. vs. Antonio Carlos A Calvares, Mauricio 
Alcides Kruger, Mark Edward Lewis, Empresa Brasileira 
de Mineracao Imp e Exp. Ltda., filed Dec. 3, 1986, in the 
U.S. District Court for the Eastern District of Kentucky.  
Charles Hayes personally delivered gems with an 
appraised value of $1.3 million.  Customs Form 4655, 
Receipt for Seized Goods, dated July 25, 1985, for goods 
delivered by Charles Hayes is signed by Paul E. 
Carpenter.  A similar receipt on July 28 is signed by 
George F. Fritz, Special Agent, witnessed by John D. 
Morton, RAC.  The total seizure in the case involved more 
than $10 million in property.  Under 18 USC 371, 542, 
545, Hayes says, he is entitled to *mordi*--this being 
typically 25 percent of the total seizure, but a minimum of 
10 percent.)

	More relevant to the Inslaw case, is the fact that in 
August 1990, Charles Hayes purchased used Justice 
Department computers and peripheral equipment (Lot 097 
from the U.S. attorney's office in Lexington, Kentucky) for 
salvage for $45, and found on them copies of the pirated 
PROMIS software, as well as sealed grand jury 
indictments, and the names of Justice Dept. informants.  
The General Accounting Office found the Justice 
Department's sale of computers from which it had not 
erased sensitive information alarming, noting, "The error 
may have put some informants, witness and undercover 
agents in a 'life-and-death' situation."  

	The Justice Department, having sold Hayes the 
equipment, subsequently seized it under warrant--
apparently to prevent its being used as evidence in the 
Inslaw case.  But Hayes subsequently sued and got the 
equipment back, plus a undetermined settlement amount. 
(This case is discussed, albeit somewhat incompletely and 
inaccurately, in David Burnham, Above the Law:  Secret 
Deals, Political Fixes, and Other Misadventures of the 
U.S. Department of Justice, Scribner, New York, 1996).

	In the April 2, 1996, deposition, Justice attorney 
Beth Cook seemed unaware that the Justice Department 
was under Congressional order from the Brookes 
Committee on the Judiciary (see [1]) to cease the sale of 
pirated software, not to mention hard drives containing 
confidential information.  Similar restrictions have been 
placed on the IRS which, from its Martinsburg, West 
Virginia, central record depository, sold some 40,000 
pounds of used computer disks containing the tax records 
of thousands of U.S. citizens--records of considerable 
interest to credit bureaus, organized crime, and foreign 
intelligence organizations.

	When asked how he felt just prior to the 
deposition, Hayes said, "Great, Kentucky's No. 1," 
referring to the previous night's championship win over 
Syracuse by the University of Kentucky basketball team.

	About the only thing that Hayes didn't accuse the 
DoJ of in his April 2 deposition was murder.  Others are 
not so kind.  In its Addendum to INSLAW's ANALYSIS and 
REBUTTAL of the BUA REPORT, dated February 14, 
1994, Inslaw notes with respect to the Justice Department's 
Office of Special Investigations (OSI):  "OSI's publicly-
declared mission is to locate and deport Nazi war 
criminals.  The Nazi war criminal program is, however, a 
front for the Justice Department's own covert intelligence 
service, according to disclosures recently made to 
INSLAW by several senior Justice Department career 
officials . . . According to written statements of which 
INSLAW has obtained copies, another undeclared mission 
of the Justice Department's covert agents was to insure that 
investigative journalist Danny Casolaro remained silent 
about the role of the Justice Department in the INSLAW 
scandal by murdering him in West Virginia in August 
1991."

	Is the U.S. Department of Justice just another 
tenacle of the Octopus?  If so, then what is the meaning of 
the phrase "with liberty and justice for all"?

			Footnotes

[1]  The Inslaw case was the subject of a Congressional 
report: The Inslaw Affair:  Investigative Report by the 
Committee on the Judiciary, Jack Brookes, Chairman, 
House Report 102-856, U.S. Government Printing Office, 
Washington, 1992.

See also:

Mahar, Maggie, "Beneath Contemp:  Did the Justice Dept. 
Deliberately Bankrupt INSLAW," Barron's National 
Business and Financial Weekly, March 21, 1988.

Mahar, Maggie, "Rogue Justice:  Who and What Were 
Behind the Vendette Against INSLAW?", Barron's 
National Business and Financial Weekly, April 4, 1988.

Martin, Harry V.,  "Federal Corruption: Inslaw", The 
Napa Sentinel, a series of articles with various titles 
beginning March 15, 1991 and extending through March 
19, 1993.

Fricker, Richard L., "The Inslaw Octopus," Wired, #4, 
1993.

Bua, Nicolas J., Report of Special Counsel Nicholas J. 
Bua to the Attorney General of the United States 
Responding to the Allegations of INSLAW, Inc., March 
1993

Inslaw, Inc., INSLAW's ANALYSIS and REBUTTAL of the 
BUA REPORT,  July 1993.

Inslaw, Inc.,  Addendum to INSLAW's ANALYSIS and 
REBUTTAL of the BUA REPORT,  February 14, 1994

[2]  In addition to the sources mentioned  in footnote [1], 
the death of Danny Casolaro is explored in: Connolly, 
John, "Dead Right," Spy Magazine, January 1993.




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