The Strange Story of the Smuggled Bonds

It is indeed strange. After the initial press releases the story fell completly silent. Neither the Fed, the Treasury nor the Italian Guardia di Finanza, who busted the two Japanese at the Swiss-Italian border, had much to say since then.
The Italian authorities are completly silent, while the US Treasury by way of a short statement by a Stephen Meyerhardt,  claimed that the securities were “clearly fakes” yet while admiting that “they only saw the pictures of them on Internet.”

So what’s going on here?

Of course, you’ll find mostly rumors. However, a promising source,, gives a run-down of a the few facts we know and some mild specualation, however, without substantiating it.

So, let us start with what we know and what is confirmed. We know that the two were busted on June 4, 2009. According to

According to them [GDF], the two Asian men stopped at Ponte Chiasso (Italy) on their way to Chiasso (Switzerland) were indeed Japanese nationals, one from Kanagawa Prefecture (central Japan) and the other from Fukuoka Prefecture (western Japan).
The only other certainty is that both men were released after their identity was established.
If police had enough elements to conclude that the securities were fakes (and this is true even for lower denominations or net worth), it had to arrest the two men. Failure to do so would have meant charges for the police officers involved.
If this was not the case, then the two men were released because police authorities were convinced that the securities were real. In fact under Italian law, the authorities could not arrest the two Japanese nationals but could only impose a fine worth 40 per cent of the value of anything above 10,000 €. then goes on to draw conclusions:

All that AsiaNews can conclude is as follow:

The first report by an international news agency is dated 12 June and is by Bloomberg. It includes something odd. Some of the seized securities were issued in 1934; a detail not found in the statement issued by Italy’s financial police.


Conversely, we do know that the US treasury did issue one billion dollar Kennedy Bonds less than ten years ago, like those mentioned in the police’s official statement of 4 June, but whether the latter are real or not is something that has not yet been officially determined.


Two weeks after the story initially broke Bloomberg quoted a US Treasury official, Stephen Meyerhardt, who could claimed that the securities were “clearly fakes”. Yet in another interview Meyerhardt said that he had not seen the securities in person but had relied on a photo on the internet to reach his opinion.

Also, two weeks into the affair, after Italian and US authorities were informed about the seizure, no one from the US Treasury has yet to come to Italy to check out their authenticity; indeed such a simple operation if we are to believe Mr Meyerhardt since he could reach that conclusion just by looking at an internet photo and this against the backdrop of the Italian financial police which claims that if the securities were indeed counterfeit they were so well done that they were indistinguishable from real ones.

What this means is that either the Italian policemen are totally incompetent (which is not very likely) or that Meyerhardt’s statement should be taken with a pinch of salt.

Since no official statement has been forthcoming from the authorities, all we have to rely on is an interview by the commander of the Guardia di Finanza detachment in Como to a news agency in which he expressed his own opinion, not that of his force, which is thus not formally bound by what he said. Even then, as far as the authenticity of the securities is concerned all Colonel Mecarelli would say is that Italy’s financial police “is waiting for our US colleagues to determine whether the bonds are real or forgeries.”

Confidential sources, whose reliability AsiaNews could not confirm, claim that one of the two Japanese stopped and then released in Ponte Chiasso was Tuneo Yamauchi, brother-in-la[w] of Toshiro Muto, who was until recently Deputy Governor of the Bank of Japan, which of course does not automatically mean that the securities are real.However, other sources are saying that for Italian authorities they are real and that Rome is unwilling to play along with the US Federal Reserve, which described them as fakes without taking a peak at them, except via the internet.What seems clear is that the Federal Reserve has a vested interest in helping the Bank of Japan get the Securities back to avoid paying the Italian fine. The Fed in fact is having a hard time trying to sell its bills on various markets and the Japanese are its main buyers.

Are their sources credible? I don’t know, but is the US Treasury credible? Certainly not.

[Source:, Italy]


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