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Context of 'Early September 2001: Sharp Increase in Short Selling of American and United Airlines Stocks'

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Ex-President Bush Sr. meeting with Saudi Arabia’s King Fahd on behalf of the Carlyle Group in 2000.
Ex-President Bush Sr. meeting with Saudi Arabia’s King Fahd on behalf of the Carlyle Group in 2000. [Source: Saudi Embassy]Former President George H. W. Bush meets with the bin Laden family on behalf of the Carlyle Group. He had also met with them in November 1998 (see November 1998), but it is not known if he meets with them again after this. Bush denies this meeting took place until a thank you note is found confirming that it took place. [Wall Street Journal, 9/27/2001; Guardian, 10/31/2001]

Entity Tags: Bin Laden Family, Carlyle Group, George Herbert Walker Bush

Timeline Tags: Complete 911 Timeline

’Blackout,’ by John J. Nance.’Blackout,’ by John J. Nance. [Source: Pan Books]Blackout, the new novel by aviation thriller writer John J. Nance, includes scenes which appear to predict aspects of the 9/11 attacks, such as a character suggesting the possibility of a Boeing 747 crashing into the World Trade Center because its pilots have been incapacitated by terrorists. [Nance, 2000, pp. 251, 320, 344-345; Associated Press, 8/24/2003] The novel’s storyline involves its two central characters, FBI agent Kat Bronsky and Washington Post reporter Robert MacCabe, investigating what has caused two American passenger jets to crash. It appears that terrorists are using a special ray gun stolen from the government to kill or blind pilots in midair, resulting in their planes crashing. [Publishers Weekly, 1/31/2000; Los Angeles Times, 4/16/2000]
FBI Agent Fears 747 Hitting WTC - In one scene, Bronsky explains to MacCabe her fear that the terrorists are “going to shoot down another airliner somewhere.” She says: “So who’s next? Are we going to get a seven-forty-seven impacting the World Trade Center in New York because the two pilots were neutralized on takeoff from Newark or Kennedy?” [Nance, 2000, pp. 319-320] Similar to this scenario, in the terrorist attacks on 9/11, the WTC will be hit by two Boeing 767s. [New York Times, 9/11/2001]
Agent Suggests Terrorists Profiting from Insider Trading - In a later scene, Bronsky suggests to MacCabe that the attacks against aircraft may be motivated by financial gain. She says: “How can you make lots of money from seriously undermining the airlines? How about selling their stock short or softening up the industry for financial takeovers?” She suggests the terrorists “may already be getting precisely what they want from collapsing airline market prices.” When asked if stock prices are down as a result of the plane crashes, Bronsky replies: “Big-time. As much as a 10 percent drop. If this continues, they’ll go into free fall.” [Nance, 2000, pp. 344-345] Similar to this scenario, evidence of possible insider trading will surface in the aftermath of 9/11, indicating that some people may have profited from having advance knowledge of the attacks. [CNN, 9/24/2001; 9/11 Commission, 7/24/2004, pp. 499] In the week before 9/11 there will be surges in the volume of put options, which pay off when a stock drops in price, purchased on the stocks of the parent companies of American Airlines and United Airlines, the airlines whose planes are targeted in the attacks (see September 6-10, 2001). [San Francisco Chronicle, 9/29/2001; 9/11 Commission, 7/24/2004, pp. 499] Also, in the month before 9/11 there will be a significant increase in short selling of stocks of those two companies, essentially betting that the value of the stocks will decrease (see Early September 2001). [San Francisco Chronicle, 9/22/2001; CNN, 9/24/2001] On the first day of trading following the attacks, the shares of the two companies will fall by 39 percent and 42 percent. [Associated Press, 9/18/2001]
Terrorist Has Name Similar to Alleged 9/11 Commander - Furthermore, one of the terrorists responsible for causing the plane crashes in Blackout is called “Ben Laren,” a name similar to (Osama) bin Laden, who allegedly orders the 9/11 attacks. [Nance, 2000, pp. 251]
Earlier Novel Described Plane Used as a Weapon - Nance, described by Publishers Weekly as “[a]rguably the king of the modern-day aviation thriller,” is a decorated Air Force pilot and a retired airline captain. He has extensive flying experience, having piloted jet aircraft including Boeing 727s, 737s, and 747s. He is also an internationally recognized analyst on matters of aviation safety and works for ABC News as an aviation consultant. [Publishers Weekly, 1/31/2000; Associated Press, 8/24/2003; ABC News, 1/6/2006] In his 1995 novel Pandora’s Clock, Nance in fact mentioned the possibility of a plane being used as a weapon by terrorists. In that novel, the deputy director of the CIA recalled an American-trained Iranian pilot, who is a member of a terrorist group, who had been caught “preparing to fly a MIG-29 fighter on a low-level suicide mission into Rome. His target had been the Vatican—and the Pope.” [Nance, 1995, pp. 144]

Entity Tags: John J. Nance

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

The FBI Minneapolis field office wishes to search Zacarias Moussaoui’s belongings, which will later be found to contain enough information to potentially stop 9/11 (see August 16, 2001). To do so it must get the approval of the Radical Fundamentalist Unit (RFU) at FBI headquarters. However, the RFU throws obstacles in the warrant request’s path:
bullet RFU chief Dave Frasca stops the Minneapolis office from pursuing a criminal warrant (see August 21, 2001);
bullet When French authorities say that Moussaoui is connected to the Chechen rebels, RFU agent Mike Maltbie insists that the FBI representative in Paris go through all telephone directories in France to see how many Zacarias Moussaouis live there (see August 22, 2001);
bullet Maltbie stops Minneapolis from informing the Justice Department’s Criminal Division about the case (see August 22, 2001);
bullet When RFU agent Rita Flack, who is working on the Moussaoui case, reads the Phoenix memo suggesting that bin Laden is sending pilots to the US for training, she apparently does not tell her colleagues about it, even though it was addressed to several of them, including Frasca (see July 10, 2001 and August 22, 2001);
bullet The RFU does not provide the relevant documentation to attorneys consulted about the request. In particular, Flack does not tell them about the Phoenix Memo, even though one of the attorneys will later say she asked Flack if anyone is sending radical Islamists to the US to learn to fly (see August 22-28, 2001);
bullet When Minneapolis learns Moussaoui apparently wants to go on jihad, Frasca is not concerned and says jihad does not necessarily mean holy war. However, a top Justice Department attorney will later say “he would have tied bells and whistles” to this comment in a request for a search warrant had he known this (see August 17, 2001 and August 29, 2001);
bullet Maltbie tells the Minneapolis office that getting a warrant will “take a few months” (see August 24, 2001). He also tells Minneapolis, “We know what’s going on. You will not question us.” (see August 27, 2001);
bullet Maltbie weakens the warrant request by editing it and removing a statement by a CIA officer that Chechen rebel leader Ibn Khattab was closely connected to Osama bin Laden, despite there being intelligence linking that leader to bin Laden (see August 28, 2001);
bullet In a key meeting with an attorney about the request, Maltbie and Flack, who are submitting the warrant, are adamant that it is not sufficiently supported (see August 28, 2001);
bullet Frasca opposes a plan to put an undercover officer in the jail cell with Moussaoui to find out more information about his connections to Islamic militants (August 29, 2001 and Shortly After);
bullet The RFU does not want a Minneapolis agent to accompany Moussaoui when he is deported (see (August 30-September 10, 2001));
bullet The RFU does not re-consider getting a criminal search warrant after a decision is taken not to seek a warrant under the Foreign Intelligence Surveillance Act (see After August 28, 2001);
bullet Frasca and Maltbie are said to oppose a search warrant after 9/11 (see September 11, 2001).
It is unclear why the RFU opposes the warrant so strongly. The Justice Department’s Office of Inspector General will later criticize the RFU staff, but will conclude that they did not intentionally sabotage the warrant application. [US Department of Justice, 11/2004, pp. 101-222 pdf file] A 2004 book by independent researcher Mike Ruppert will speculate that Frasca is actually a CIA agent. Ruppert suggests that the CIA placed Frasca in the FBI to prevent CIA operations from being compromised by FBI investigations. But he does not provide any direct evidence of ties between Frasca and the CIA (see October 1, 2004). The Minneapolis agents will offer a different interpretation of RFU actions. Coleen Rowley will say, “I feel that certain facts… have, up to now, been omitted, downplayed, glossed over and/or mischaracterized in an effort to avoid or minimize personal and/or institutional embarrassment on the part of the FBI and/or perhaps even for improper political reasons.” She asks, “Why would an FBI agent deliberately sabotage a case? The superiors acted so strangely that some agents in the Minneapolis office openly joked that these higher-ups ‘had to be spies or moles… working for Osama bin Laden.’… Our best real guess, however, is that, in most cases avoidance of all ‘unnecessary’ actions/decisions by FBI [headquarters] managers… has, in recent years, been seen as the safest FBI career course. Numerous high-ranking FBI officials who have made decisions or have taken actions which, in hindsight, turned out to be mistaken or just turned out badly… have seen their careers plummet and end. This has in turn resulted in a climate of fear which has chilled aggressive FBI law enforcement action/decisions.” [Time, 5/21/2002] Minneapolis FBI agent Harry Samit will agree with explanation, telling the Justice Department’s Office of Inspector General that the RFU is guilty of “obstructionism, criminal negligence, and careerism.” [Associated Press, 3/20/2006] Samit will also say that Maltbie even told him he was acting this way to “preserve the existence of his advancement potential” in the FBI. [Newsday, 3/21/2006]

Entity Tags: Radical Fundamentalist Unit, Michael Maltbie, David Frasca, FBI Headquarters, Harry Samit, Rita Flack, Coleen Rowley

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

There is a sharp increase in the short selling of American and United Airlines stocks on the New York Stock Exchange prior to 9/11. A short sell is a bet that a particular stock will drop. Short selling increases 40 percent over the previous month for these two airlines, compared to an 11 percent increase for other big airlines and one percent for the exchange overall. United’s stock will drops 43 percent and American 39 percent the first day the market reopens after the attack. [Reuters, 9/20/2001; San Francisco Chronicle, 9/22/2001] There is also a short spike in the short interest in Dutch airline KLM three to seven days before 9/11, reaching historically unprecedented levels. [USA Today, 9/26/2001]

Entity Tags: American Airlines, United Airlines, New York Stock Exchange

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

A. B. “Buzzy” Krongard.A. B. “Buzzy” Krongard. [Source: Public domain]Suspicious trading occurs on the stock of American and United, the two airlines hijacked in the 9/11 attacks. “Between 6 and 7 September, the Chicago Board Options Exchange [sees] purchases of 4,744 put option contracts [a speculation that the stock will go down] in UAL versus 396 call options—where a speculator bets on a price rising. Holders of the put options would [net] a profit of $5 million once the carrier’s share price [dive] after September 11. On September 10, 4,516 put options in American Airlines, the other airline involved in the hijackings, [are] purchased in Chicago. This compares with a mere 748 call options in American purchased that day. Investigators cannot help but notice that no other airlines [see] such trading in their put options.” One analyst later says, “I saw put-call numbers higher than I’ve ever seen in ten years of following the markets, particularly the options markets.” [Associated Press, 9/18/2001; San Francisco Chronicle, 9/19/2001] “To the embarrassment of investigators, it has also [learned] that the firm used to buy many of the ‘put’ options… on United Airlines stock was headed until 1998 by ‘Buzzy’ Krongard, now executive director of the CIA.” Krongard was chairman of Alex Brown Inc., which was bought by Deutsche Bank. “His last post before resigning to take his senior role in the CIA was to head Bankers Trust—Alex Brown’s private client business, dealing with the accounts and investments of wealthy customers around the world.” [Independent, 10/14/2001]

Entity Tags: Chicago Board Options Exchange, United Airlines, American Airlines, Deutsche Bank, Computer Assisted Passenger Prescreening System

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

A soldier monitors a NORAD radar screen.A soldier monitors a NORAD radar screen. [Source: National War College]NORAD has had fighter jets deployed to Alaska and Northern Canada for the past two days. They are there for a real-world maneuver called Operation Northern Vigilance, tasked with monitoring a Russian air force exercise being conducted in the Russian Arctic all this week (see September 9, 2001). [North American Aerospace Defense Command, 9/9/2001] At its operations center deep inside Cheyenne Mountain, Colorado, NORAD is also reportedly at “full ‘battle staff’ levels for a major annual exercise that tests every facet of the organization.” The operations center is now contacted by NORAD’s Northeast Air Defense Sector (NEADS), based in Rome, New York. NEADS says the FAA believes there is a hijacking in progress and is asking NORAD for support; this is not part of the exercise. As the Toronto Star will later report: “In a flash, Operation Northern Vigilance is called off. Any simulated information, what’s known as an ‘inject,’ is purged from the screens.” [Toronto Star, 12/9/2001] NORAD has the capacity to inject simulated material, including mass attacks, during exercises, “as though it was being sensed for the first time by a radar site.” [US Department of Defense, 1/15/1999] However, Northern Vigilance is a military operation, not a training exercise. [North American Aerospace Defense Command, 9/9/2001; US Congress, 3/11/2005] So presumably the “simulated information” is part of a NORAD exercise currently taking place, such as Vigilant Guardian (see (6:30 a.m.) September 11, 2001). Therefore, many minutes into the real 9/11 attacks, there may be false radar blips appearing on the screens of NORAD personnel. Additional details, such as whose radar screens have false blips and over what duration, are unclear. However, while the Toronto Star will indicate that the simulated material is removed from NORAD radar screens shortly before 9:03 a.m., when the second attack on the World Trade Center takes place, at 10:12 a.m. an officer at the operations center will call NEADS and ask it to “terminate all exercise inputs coming into Cheyenne Mountain” (see 10:12 a.m. September 11, 2001). [North American Aerospace Defense Command, 9/11/2001; Toronto Star, 12/9/2001] This would indicate that the NORAD operations center continues receiving simulated radar information for over an hour more, until after Flight 93 has crashed (see (10:06 a.m.) September 11, 2001) and the terrorist attacks have ended. The Russians, after seeing the attacks on New York and Washington on television, will quickly communicate that they are canceling their Russian Arctic exercise. [Toronto Star, 12/9/2001; National Post, 10/19/2002]

Entity Tags: Northeast Air Defense Sector, Vigilant Guardian, Operation Northern Vigilance, North American Aerospace Defense Command

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

As part of a NORAD training exercise, a simulated plane hijacking was scheduled to occur around this time. It was to have been based around politically motivated perpetrators taking command of an aircraft, landing it on a Cuba-like island, and seeking asylum there. The hijacking was one of several simulated scenarios prepared for the day. Details of the other scenarios are unknown. Major Kevin Nasypany, the mission crew commander at NORAD’s Northeast Air Defense Sector (NEADS) who’d helped designed the exercise, initially thought the reports of Flight 11 being hijacked were because “Somebody started the exercise early.” [Vanity Fair, 8/1/2006] The exercise was canceled after the second plane hit the World Trade Center (see (Shortly After 9:03 a.m.) September 11, 2001).

Entity Tags: Vigilant Guardian, Kevin Nasypany, North American Aerospace Defense Command, Northeast Air Defense Sector

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

The on-line Wall Street Journal article discussing the connections between Lt. Gen. Mahmood Ahmed, Saeed Sheikh, and Mohamed Atta.The on-line Wall Street Journal article discussing the connections between Lt. Gen. Mahmood Ahmed, Saeed Sheikh, and Mohamed Atta. [Source: Public domain]ISI Director Lt. Gen. Mahmood Ahmed is replaced in the face of US pressure after links are discovered between him, Saeed Sheikh, and the funding of the 9/11 attacks. Mahmood instructed Saeed to transfer $100,000 into hijacker Mohamed Atta’s bank account prior to 9/11. This is according to Indian intelligence, which claims the FBI has privately confirmed the story. [Press Trust of India, 10/8/2001; Times of India, 10/9/2001; India Today, 10/15/2001; Daily Excelsior (Jammu), 10/18/2001] The story is not widely reported in Western countries, though it makes the Wall Street Journal. [Australian, 10/10/2001; Agence France-Presse, 10/10/2001; Wall Street Journal, 10/10/2001] It is reported in Pakistan as well. [Dawn (Karachi), 10/8/2001] The Northern Alliance also repeats the claim in late October. [Federal News Service, 10/31/2001] In Western countries, the usual explanation is that Mahmood is fired for being too close to the Taliban. [London Times, 10/9/2001; Guardian, 10/9/2001] The Times of India reports that Indian intelligence helped the FBI discover the link, and says, “A direct link between the ISI and the WTC attack could have enormous repercussions. The US cannot but suspect whether or not there were other senior Pakistani Army commanders who were in the know of things. Evidence of a larger conspiracy could shake US confidence in Pakistan’s ability to participate in the anti-terrorism coalition.” [Times of India, 10/9/2001] There is evidence some ISI officers may have known of a plan to destroy the WTC as early as July 1999. Two other ISI leaders, Lt. Gen. Mohammed Aziz Khan and Lt. Gen. Muzaffar Usmani, are sidelined on the same day as Mahmood (see October 8, 2001). [Fox News, 10/8/2001] Saeed had been working under Khan. The firings are said to have purged the ISI of its fundamentalists. However, according to one diplomat, “To remove the top two or three doesn’t matter at all. The philosophy remains.… [The ISI is] a parallel government of its own. If you go through the officer list, almost all of the ISI regulars would say, of the Taliban, ‘They are my boys.’” [New Yorker, 10/29/2001] It is believed Mahmood has been living under virtual house arrest in Pakistan (which would seem to imply more than just a difference of opinion over the Taliban), but no charges have been brought against him, and there is no evidence the US has asked to question him. [Asia Times, 1/5/2002] He also has refused to speak to reporters since being fired [Associated Press, 2/21/2002] , and outside India and Pakistan, the story has only been mentioned infrequently in the media since. [Sunday Herald (Glasgow), 2/24/2002; London Times, 4/21/2002] He will reemerge as a businessman in 2003, but still will not speak to the media (see July 2003).

Entity Tags: Muzaffar Usmani, Mohamed Atta, Federal Bureau of Investigation, Northern Alliance, Mohammed Aziz Khan, Taliban, Saeed Sheikh, Pakistan Directorate for Inter-Services Intelligence, Mahmood Ahmed, India, World Trade Center

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Author Mike Ruppert.Author Mike Ruppert. [Source: From the Wilderness]Mike Ruppert, a former detective with the Los Angeles Police Department, publishes Crossing the Rubicon, in which he argues that al-Qaeda lauched the 9/11 attacks, but certain individuals within the Bush administration, the US Secret Service, and the CIA not only failed to stop the attacks but prevented others within government from stopping them. In contrast to other prominent skeptic literature (see, for example, November 8, 2005 and March 20, 2006), Ruppert focuses on non-physical evidence. He believes that those responsible for the attacks intended to use it as a pretext for war in the Middle East with the intention to gain control of a large amount of the planet’s oil reserves, which he thinks will soon start to run out, forcing prices higher. He also discusses the various war games on 9/11 (see (9:00 a.m.) September 11, 2001 and (9:40 a.m.) September 11, 2001), allegations of insider trading before the attacks (see Early September 2001), whether the CIA had a hand in thwarting the Moussaoui investigation (see August 20-September 11, 2001), and US relations with Pakistan and Saudi Arabia (see October 7, 2001 and January 2000)). [Ruppert, 2004]

Entity Tags: Michael Ruppert

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Steven E. Jones.Steven E. Jones. [Source: Publicity photo]Steven E. Jones, a 20-year physics professor at Brigham Young University in Utah, posts a 9,000-word academic paper on the Internet, in which he says it is likely there were explosives in the three WTC towers that collapsed on 9/11. In his paper, which has been accepted for peer-reviewed publication in 2006, he states, “It is quite plausible that explosives were pre-planted in all three buildings and set off after the two plane crashes—which were actually a diversion tactic.… Muslims are (probably) not to blame for bringing down the WTC buildings after all.” He says the official explanation for the collapses—that fires and structural damage caused them—cannot be backed up by either testing or history. The Pittsburgh Tribune-Review will comment, “Jones isn’t the first to make this shocking/unbelievable claim… But it’s hard to imagine anyone making it clearer.” Jones, who conducts research in fusion and solar energy, wants a new, independent investigation into what caused the collapses. [Deseret Morning News, 11/10/2005; KUTV 2 (Salt Lake City), 11/10/2005; MSNBC, 11/16/2005; Pittsburgh Tribune-Review, 11/20/2005]

Entity Tags: World Trade Center, Steven E. Jones

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Charlie SheenCharlie Sheen [Source: Publicity photo]Well-known Hollywood actor Charlie Sheen reveals that he believes there is a massive US government coverup of what really occurred on 9/11. Appearing on the Alex Jones radio show, he says, “It seems to me like 19 amateurs with boxcutters taking over four commercial airliners and hitting 75 percent of their targets, that feels like a conspiracy theory. It raises a lot of questions.” [CBS 2 (Chicago), 3/23/2006] He says, “I saw the South Tower hit live, that famous wide shot where it disappears behind the building and then we see the tremendous fireball,” and comments, “it didn’t look like any commercial jetliner I’ve flown on any time in my life.” He questions how a commercial plane could have performed the elaborate maneuvers necessary to hit the Pentagon, as Flight 77 reportedly did, and also says the collapses of the Twin Towers looked like a “controlled demolition.” [CNN, 3/22/2006] In response, some newspaper columnists ridicule him, with the New York Post accusing him of joining the “9/11 gone-bonkers brigade,” and a columnist with the London Guardian calling him “insane.” [New York Post, 3/23/2006; Guardian, 3/25/2006] However, CNN’s daily entertainment news show Showbiz Tonight gives him more sympathetic attention, and covers the story four shows in succession. Several celebrities defend Sheen’s right to express his views. Bestselling author Erica Jong says he has “done his homework, and he’s asking questions. He’s speaking truth to power, which is a brave thing to do.” [CNN, 3/22/2006; CNN, 3/23/2006; CNN, 3/24/2006; CNN, 3/27/2006]

Entity Tags: Erica Jong, Charlie Sheen

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

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