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On February 22, 1991, President Bush announced a cease-fire in the Gulf War and reinstated the dictator of Kuwait. The very next day (one and a half years after BNL-Atlanta was raided), prosecutors finally brought indictments in the BNL case. Three former BNL-Atlanta officials, the Iraqi Rafidian Bank, and four Iraqi officials (among others) were charged with fraud and conspiracy. The indictment assumed that neither the US government nor the Italian government (owner of the BNL) had been aware of BNL-Atlanta’s relationship with Iraq, despite evidence and testimony that revealed that even Bush himself knew about the entire operation.

There are reasons why it happened, but no excuses. ” As a result of the scandal, numerous administration officials and others were indicted for their parts in the Iran Contra scandal. A majority of the officials pleaded guilty. Poindexter, North, Weinburger, and McFarlane were all convicted, but Poindexter and North’s charges were vacated due to their protected testimony during the Iran Contra investigation. President Reagan, Vice President Bush, and CIA Director Casey were all implicated during numerous testimonies, but no connection could be made between the three and the illegal diversion of funds.

In addition, the American taxpayer financed the guarantees and insurance that freed up almost $6 billion for Iraq to use for buying those weapons of mass destruction that you hear about all of the time. So not only were American taxpayers financing the guarantees, they ended up paying a hefty sum for Iraqi nonpayment. The BNL Scandal Due to working with Iraq under guarantees from the CCC and Eximbank, officials at the Atlanta-BNL had acquired a close relationship with Iraqi officials. Close enough, in fact, to loan Iraq large sums of money with 5-7 year maturities for Iraq’s reconstruction programs following the end of the Iran Iraq War in 1988.

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