Karen Hudes

Enron at Bretton Woods

Karen Hudes Thu, Oct 30, 2014 at 9:47 AM

From: Karen Hudes

Date: Thu, Oct 30, 2014 at 9:47 AM
Subject: Fwd: Enron at Bretton Woods
To: Jason Waskey

Jason,

It is necessary for you all to get with the coalition for the rule of law that is now in charge. The rally that
Barbara Mikulski and Hilary Clinton are mounting this afternoon is a great opportunity. Everyone who
hesitates to get with the program is going to have an uphill battle going forward.

Best,
Karen Hudes
Acting General Counsel
International Bank for Reconstruction and Development
Legal Counsel Global Debt Facility TVM LSM 666

Re: World Bank Thu, Apr 8, 2010 12:08 pm

From
Jason Waskey
To Karen Hudes
Karen -
Thanks for keeping me in the loop. As you know, there isn't anything I can do, but I appreciate getting the
update emails.
Thanks,
Jason
--
Jason Waskey
Maryland State Director
Organizing for America
www.dnc.org

On Sat, Apr 3, 2010 at 7:18 AM, Karen Hudes wrote:

Dear Jason,

This chain of emails begins with Pieter Stek, the former Executive Director from the Netherlands who
helped to alert the Board about the cover-up on the Philippines Banking Sector Reform Loan. The World
Bank's Managing Director from Australia tried to appoint Pieter to a team tasked with evaluating the World
Bank's internal justice system after Pieter retired, but Robert Zoellick vetoed this.

The next email is to an adviser in the Canadian Executive Director's office.

1
 The next email is to Femi Badaki. Femi is now acting Vice President of the Human Resources
Department during Hasan Tuluy's travel. Femi served as my personnel adviser when I was country lawyer
for the Philippines. My email is copied to chairs of the Board's committees, board members familiar with
the cover-up on the Philippines Banking Sector Reform Loan, and Mark Otto, who works in the US
Executive Director's office.

Best,
Karen

---------- Forwarded message ----------

From: Karen Hudes
Date: Mon, Feb 11, 2013 at 10:04 AM
Subject: Enron at Bretton Woods
To: ac3133@columbia.edu

Dear Prof. d'Almeida,

I have also been in touch with Saskia Sassens and Jose O'Campo on this
governance matter.

Sincerely,
Karen Hudes
www.kahudes.net

---------- Forwarded message ----------

From: Karen Hudes
Date: Mon, Feb 11, 2013 at 10:00 AM
Subject: Thank you for taking my call
To: hg2252@columbia.edu

Dear Hande,

Thank you for taking my call. I would appreciate your forwarding this to the
journalists involved in ethics and politics as we discussed.

Best,
Karen Hudes
www.kahudes.net

----------- Forwarded message ----------

From: Karen Hudes
Date: Mon, Feb 11, 2013 at 9:25 AM
Subject: Re: Rule of Law
To: michael.ulrich@nyu.edu,
Cc: mike.tae@nyu.edu,

bcc: joshua_benton@harvard.edu

2
Dear Mr. Ulrich,

I received my B.A. from NYU in 1970; I am in contact with several other universities
about bringing the International Bank for Reconstruction and Development into
compliance. This matter can be characterized as Enron at Bretton Woods.

Sincerely,
Karen Hudes
www.kahudes.net

---------- Forwarded message ----------

From: Karen Hudes
Date: Sun, Feb 10, 2013 at 7:02 AM
Subject: World Bank Financial Statements
To: dllr@dllr.state.md.us
Cc: Chair of Development
Committee, mike.heavican@nebraska.gov, andrew.lippstone@state.de.us, dquam@ng
a.org, jmcpherson@naag.org, nass@sso.org, laura_minor@ao.uscourts.gov, geoffrey.h
arris@ep.europa.eu, CAB-ASHTON-ARES@ec.europa.eu, sintonb@parliament.uk,
ihoven <ihoven@worldbank.org>, mhasan@worldbank.org,
<emiagkov@worldbank.org>, rtreffers@worldbank.org>,
<afayolle@worldbank.org>, , intosai@rechnungshof.gv.at, intosai.donor.secretariat@idi.
no, Sattler Robert <sattler@rechnungshof.gv.at>

Dear Secretary Howie,

Thank you for your offer of January 29, 2013 to assist in matters under Maryland's
jurisdiction: ensuring that a World Bank bondholder in Maryland receives accurate
financial statements. The International Organization of Supreme Audit Institutions is
also assisting in this endeavor.

I have requested the Conference of Chief Justices, which may be affiliated with such
organizations having purposes consonant with those of the Conference, as well as the
National Governors Association, the National Association of Attorneys General, and the
National Association of Secretaries of State to prevent an otherwise all but certain
currency war by correcting clerical error in the DC Circuit Court of Appeals.
Correspondence with the attorneys general concerning the enforcement of state blue
sky laws is at: http://kahudes.net/wp-content/uploads/2012/05/exhibit12.pdf

I am copying the Chairman of the Joint Ministerial Committee of the Boards of

Governors of the World Bank and the International Monetary Fund (the
Development Committee), and some Executive Directors on the World Bank's Board.
The Development Committee advises the 188 Ministers of Finance on the World Bank's
Board of Governors.

3
Sincerely,
Karen Hudes
Law Offices of Karen Hudes
www.kahudes.net

---------- Forwarded message ----------

From: Karen Hudes
Date: Sat, Feb 9, 2013 at 11:52 AM
Subject: Maryland's Senators are engaging Senate Legal Counsel at the request of
Maryland's Secretary of Labor, Licensing and Regulation
To: thomas_caballero
<thomas_caballero@legal.senate.gov>, Patricia_bryan@legal.senate.gov, Morgan_Fra
nkel@legal.senate.gov, Grant_Vinik@legal.senate.gov
Cc: dllr@dllr.state.md.us

From: Karen Hudes

Date: Fri, Feb 8, 2013 at 6:13 PM
Subject: http://kahudes.net/wp-content/uploads/2013/01/ljudicialconference1.pdf
To: laura_minor@ao.uscourts.gov
Cc: andrew.lippstone@state.de.us, dquam@nga.org, dllr@dllr.state.md.us,
"sekretariat.gp" <sekretariat.gp@nbp.pl>, geoffrey.harris@ep.europa.eu, CAB-
ASHTON-ARES@ec.europa.eu, sintonb@parliament.uk, ihoven
<ihoven@worldbank.org>, kfarley@ncsc.org

Dear Ms. Minor,

I have heard from three of the 50 governors concerning clerical error in the DC
Circuit Court of Appeals currently under review by the Judicial Conference. Governor
Jack Markell asked me to keep Mr. Lippstone informed; Governor Bob McDonnell's
office put me in touch with the legislator who proposed a feasibility study for issuing
currency of the Commonwealth of Virginia in the event of a dollar crisis; and the
Secretary of Maryland's Department of Labor, Licensing and Regulation asked me on
behalf of Governor Martin O'Malley to contact him for assistance. I trust that the
Administrative Office will correct the error by the clerk in the DC Circuit Court of Appeals
to disregard the International Bank for Reconstruction and Development Board of
Governors' settlement of my case.

Sincerely,
Karen Hudes
Law Offices of Karen Hudes
www.kahudes.net

4
---------- Forwarded message ----------
From: Karen Hudes
Date: Mon, Jan 28, 2013 at 4:12 AM
Subject: Rule of Law
To: mike.heavican@nebraska.gov
Cc: andrew.lippstone@state.de.us, dquam@nga.org, geoffrey.harris@ep.europa.eu, CAB-ASHTON-
ARES@ec.europa.eu, sintonb@parliament.uk

Dear Justice Heavican,

I am contacting you as President-Elect of the Conference of Chief Justices to inform you about a
governance crisis. I faxed background information on December 14, 2012, to the 51 Chief Justices
comprising the CCJ.

Please contact Governor Markell, President of the National Governors Association. The 188 member
countries of the World Bank are aware of this matter; I am copying the European Union and the
Parliament of the United Kingdom, which are assisting.

Sincerely,
Karen Hudes

---------- Forwarded message ----------

From: Karen Hudes
Date: Fri, Feb 8, 2013 at 12:54 PM
Subject: Report to the Joint Economic Committee and the Congressional Liaison of the
National Governors Association
To: Monica_Swintz@casey.senate.gov

I would like to request a meeting with Senator Casey in order to bring the International
Bank for Reconstruction and Development into compliance, prevent a further
downgrade in the US credit rating, and avoid a currency war.

Sincerely,
Karen Hudes
Law Offices of Karen Hudes
www.kahudes.net

---------- Forwarded message ----------

From: Karen Hudes
Date: Fri, Feb 8, 2013 at 8:57 AM
Subject: World Bank Corruption
To: Gail_cohen@jec.senate.gov, robert_O'Quinn@jec.senate.gov, colleen_healy@jec.s
enate.gov, matthew_salomon@jec.senate.gov, jeff_schlagenhauf@jec.senate.gov, jim_
whitney@jec.senate.gov, tom_jones@jec.senate.gov, doug_branch@jec.senate.gov
Cc: dquam@nga.org

Dr. Jim Kim's refusal to implement the decision of the Board of Governors of the World
Bank is currently with Maryland's Secretary of Labor, Licensing and Regulation. Dr. Kim
has continued IBRD's litany of escalating impunity in contempt of Congress:

5
 • IBRD disregarded the Joint Economic Committee's 2005 inquiry into IBRD's
"corporate governance irregularities" and "accounting problems
problems" http://kahudes.net/wp-content/uploads/2012/10/101.pdf

• IBRD failed to follow the JEC's advice that professional financial and accounting
employees be given independent access to IBRD's Board and its Audit
Committee;

• IBRD failed to protect me against retaliation for challenges of illegality or

other misconduct that could threaten the bank's mission through external
arbitration pursuant to the 2005 Lugar-Leahy amendment, 22 U.SC. §262o-4

http://kahudes.net/wp-content/uploads/2012/10/105.pdf

• IBRD stonewalled Senator Lugar's and Congressman Van Hollen's four

requests for the advice of the executive search firm following my disclosure of
internal control lapses http://kahudes.net/wp-content/uploads/2012/10/108.pdf

http://kahudes.net/wp-content/uploads/2012/10/1101.pdf
https://docs.google.com/file/d/0Bzss7Q0pShvzejNWLWR3Yjljdmc/edit

• IBRD fails to confront its three-year refusal to comply with the Government
Accountability Office inquiry into corruption requested by Senators Lugar, Leahy
and Bayh. http://kahudes.net/wp-content/uploads/2012/10/124.pdf Congress
reiterated its request for the GAO inquiry during hearings on the IBRD capital
increase.

http://www.foreign.senate.gov/hearings/hearing/?id=33c66777-5056-a032-525a-
a0a5806634e9

• Secretary Geithner misrepresented progress on World Bank reform in

his 11/21/12 report to the Appropriations Committees pursuant to § 7082 of
the Consolidated Appropriations Act, 2012 (Pub. L. 112-74).

https://docs.google.com/file/d/0Bzss7Q0pShvzWmE5Rlp1NVdMQlk/edit

---------- Forwarded message ----------

From: Karen Hudes
Date: Fri, Feb 8, 2013 at 8:20 AM
Subject: Please also forward to Mesdames Raj and Mirza my response to the attached
29/1/13 letter from the Secretary of the State of Maryland's Department of Labor,
Licensing and Regulation
To: london.reception@fitchratings.com
Cc: "jamie.kogan" <jamie.kogan@moodys.com>, rosaleen_manzi

6
<rosaleen_manzi@sandp.com>, "trevor.pijper"
<Trevor.Pijper@moodys.com>, Paul_Coughlin@standardandpoors.com,
thomas_caballero <thomas_caballero@legal.senate.gov>

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Fri, Feb 8, 2013 at 7:24 AM
Subject: Hans, I hope you don't mind my forwarding your correspondence to Maryland's
Governor and Secretary of the Department of Labor, Licensing and Regulation
To: Hans Wabnitz

bcc: pierre.vimont@eeas.europa.eu,
CAB-ASHTON-
ARES@ec.europa.eu,
"christopher.jones"
<christopher.jones@ec.europa.eu>,
"antti.karhunen"
<antti.karhunen@ec.europa.eu>,
intosai
<intosai@rechnungshof.gv.at>,
"sekretariat.gp"
<sekretariat.gp@nbp.pl>,
andris.piebalgs@ec.europa.eu

This is to the Secretary of Maryland's Department of Labor, Licensing and Regulation

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Fri, Feb 8, 2013 at 6:26 AM
Subject: Abuses of Authority at the World Bank
To: dllr@dllr.state.md.us
Cc: julia_frifeld@mikulski.senate.gov, Shannon_Kula@mikulski.senate.gov, Catie_Finle
y@mikulski.senate.gov, Jean_Doyle@mikulski.senate.gov, Rachel_MacKnight@mikuls
ki.senate.gov, Christopher_Lynch@cardin.senate.gov, Debbie_Yamada@cardin.senate
.gov, Priscilla_Ross@cardin.senate.gov, Sue_Walitsky@mikulski.senate.gov, oag@oag
.state.md.us

To: Secretary Leonard J. Howie III

Dear Secretary Howie,

Thank you for your letter of January 29, 2013, attached for your ready reference.
The abuses I have been reporting to Governor O'Malley concern the Maryland
Securities Act, COMAR Title 2 Subtitle 02, as per the attached fax of November 11,
2012 to Ms. Melanie Lubin, Maryland's Securities Commissioner. I have reported to the
other Governors violations under their respective blue sky laws as well. The violation of
federal and state securities laws, as well as the securities laws of other nations with

7
jurisdiction over IBRD's $135 billion issued on their respective capital markets, is about
to plunge the world into a currency war. On January 14, 2013 Germany announced the
repatriation of 674 tons of gold valued at $17.9 billion from the New York Federal
Reserve. The state of Virginia is investigating the feasibility of issuing its own currency
in the event of a crisis in the dollar.

I am also forwarding for your information:

• my email of December 4, 2012 requesting Senator Mikulski's assistance in

restoring rule of law at the World Bank and bringing the International Bank for
Reconstruction and Development into compliance
• my fax of February 3, 2013 informing Honorable Robert M. Bell, Chief
Judge, Court of Appeals of Maryland, of the US' refusal to implement the
decision of the Board of Governors of the World Bank. Similar faxes went to the
other Chief Justices and to the Conference of Chief Justices
• my testimony in the UK and EU
Parliaments: http://www.publications.parliament.uk/pa/cm201213/cmselect/cmint
dev/writev/402/contents.htm and

http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubadm/writev/
publicpolicy/m03.htm

http://www.europarl.europa.eu/document/activities/cont/201105/20110518ATT19
540/20110518ATT19540EN.pdf

I am copying staff of Senators Mikulski and Cardin and Attorney General Gansler in
the confidence that I and other World Bank bondholders in Maryland will now have
access to accurate financial statements.

Sincerely,
Karen Hudes
www.kahudes.net

Mr. Zoellick stonewalled a GAO investigation

http://citizenoversight.com/pdf/blwb.pdf into corruption at the World Bank requested
by Senators Lugar, Leahy and Bayh. Paul Volcker's investigation into this
corruption was discredited http://www.commondreams.org/newswire/2010/04/06-3 With
corruption at the World Bank, the United States lost the 66 year old
Gentlemen's Agreement for the US to appoint the president of the World
Bank http://www.imf.org/external/np/cm/2010/042510.htm

8
---------- Forwarded message ----------
From: Karen Hudes <->
Date: Tue, Dec 4, 2012 at 3:43 AM
Subject: Abuses of Authority at the World Bank
To: julia_frifeld@mikulski.senate.gov

I spoke with the offices of the Senate Select Committee on Intelligence about this
problem last week. The US credit rating is at risk because of this festering problem. Dr.
Kim is further jeopardizing the continued US presidency at the World Bank.

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Tue, Feb 5, 2013 at 7:10 AM
Subject: Compliance
To: iansolomon@worldbank.org

Dear Mr. Solomon,

The stakeholder analysis referred to in the attached article has been guiding my efforts since
2004 in forming a coalition for the rule of law. During these years, I have been in contact with
the Committees in the US Congress responsible for oversight of the World Bank, as well as other
legislatures, oversight agencies and regulators.

The United States' resistance to the Board of Governors' decision to bring the World Bank
into compliance is futile at this point. Further brinksmanship only
increases the risks of another reduction in the US' credit rating and a currency war.

Sincerely,
Karen Hudes
Law Offices of Karen Hudes

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Tue, Feb 5, 2013 at 5:05 AM
Subject: Rule of Law in Bretton Woods
To: jpia.club@nyu.edu, onlineforum@nyujilp.org
Cc: jacek.kugler , University of Amsterdam, T.J.S.Offerman@uva.nl

Dear JILP,

I have not heard back whether you have accepted the article on Rule of Law in Bretton Woods
which I submitted to you on October 31, 2012 for publication in NYU's Journal of International
Law and Politics

https://docs.google.com/file/d/0Bzss7Q0pShvzNWZkQnlmOGZCQ2M/edit?usp=sharing

9
My litigation in the DC Circuit Court of Appeals is now before the Judicial Conference and the
Conference of Chief Justices. The stakeholder analysis' prediction that countervailing coalitions
in favor of the rule of law will develop (page 4, footnote 11) has been borne out by events:
Since my submission, the UK Parliament has published a second statement:
http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubadm/writev/publicpolicy/m03.htm
On January 14, 2013 Germany announced that it will repatriate 674 tons of gold valued at $17.9
billion. This sends a strong signal to the Judicial
Conference of the United States that decisions of the Board of Governors of the World Bank are
to be respected and implemented.
https://docs.google.com/file/d/0Bzss7Q0pShvzS2Npbk9lV0xkWkk/edit

Please let me know whether I should update the article to include the developments since
submission of the first draft or whether I am free to
submit the article for publication elsewhere.

Sincerely,
Karen Hudes
Law Offices of Karen Hudes
www.kahudes.net

-----Original Message-----
From: kahudes <Karen Hudes>
To: richard.fleck <richard.fleck@hsf.com>
Sent: Mon, Feb 4, 2013 2:48 pm
Subject: Financial Reporting Council

Dear Mr. Fleck,

I regret the formatting difficulties. I am currently in contact with 600,000+ members of the National
Taxpayers Union, which published a blog on my report of internal control lapses at the World
Bank: http://www.ntu.org/governmentbytes/government-reform/whistleblower-protections-a1220.html

The World Bank Board of Governors settled my litigation in the US Court of Appeals, DC Circuit. I
have requested the US Judicial Conference to correct court records:
http://kahudes.net/wp-content/uploads/2013/01/ljudicialconference1.pdf and informed the Chief Justices
of State Supreme Courts:
https://docs.google.com/file/d/0Bzss7Q0pShvzS2Npbk9lV0xkWkk/edit

Sincerely,
Karen Hudes
Law Offices of Karen Hudes
www.kahudes.net

From: "Fleck, Richard" <Richard.Fleck@hsf.com>

Date: 1 October 2012 12:56:50 BDT
To: "elaine.colville@blueyonder.co.uk" <elaine.colville@blueyonder.co.uk>
Subject: Request for FRC Investigation of Deloitte and KPMG for deficient audits of World Bank Group.

Dear Ms Colville,

10
I am writing to confirm that your emails dated 29 august, 9 September and 1 October have been passed
to me and that the matters that you have raised are being looked into to determine the appropriate
approach to be taken by the Financial Reporting Council.

I will be in touch as soon as we have completed our review of the information you have provided.

Regards
Richard Fleck
Chairman, FRC Conduct Committee.

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Fri, Jan 25, 2013 at 8:37 AM
Subject: Constitutional Crisis
To: ccj@ncsc.dni.us
Cc: andrew.lippstone@state.de.us, dquam@nga.org, geoffrey.harris@ep.europa.eu, robert_kelly
@menendez.senate.gov, daniel_o'brien@menendez.senate.gov, priscilla_ross@cardin.senate.gov

I would appreciate for the Conference of Chief Justices to inform the Chief Justices about the
crisis in the translatlantic alliance caused by corruption and improper accounting at the World
Bank.

I have requested the Judicial Conference to supervise the Director of the Administrative Office
of the U.S. Courts in the performance of his duties as the administrative officer of the courts of
the United States under 28 U.S.C. § 604.

I am forwarding background documentation for your information. The Eckhard Deutcher

referred to in the following correspondence with the Senate Committee on Foreign
Relations https://docs.google.com/file/d/0Bzss7Q0pShvzbVpwZ2FpRHJUcTQ/edit
represented the Government of Germany on the Board of Executive Directors of the
International Bank for Reconstruction and Development. The co-author in this article
http://www.kahudes.net/wp-content/uploads/2012/05/ilsaJournal1.pdf is on a first-name basis
with Chancellor Angela Merkel.

Germany is simply signaling to the US that we are at a fork in the road: we can either choose rule
of law and the transatlantic alliance, or we will have a currency war and China will come up very
fast. This is based on a 2004 stakeholder analysis using game theory modeling which predicted
that the US would lose the right to name the President of the World Bank if we did not observe
financial rules. (that happened in 2010 http://www.imf.org/external/np/cm/2010/042510.htm)
This game theory modeling tool has a 90-95% accuracy rate based on years of experience.
See http://kahudes.net/wp-content/uploads/2012/05/board-of-governors.pdf , starting page 16.

https://docs.google.com/file/d/0Bzss7Q0pShvzLWlzMFo3bXkzY2c/edit

Respectfully,
Karen Hudes

11
Law Offices of Karen Hudes

Here is my recent post in Business Insider:

http://www.businessinsider.com/german-gold-claw-back-causes-concern-2013-
1?pundits_only=0&comments_page=1#comment-5101029269bedd056a000002

Karen Hudes (URL) on Jan 24, 4:44 AM said:

Germany's announcement that it will repatriate 674 tons of gold valued at $17.9 billion sends a strong
signal to the Judicial Conference of the United States that decisions of the Board of Governors of the
World Bank are to be respected and implemented. The Board of Governors settled bondholder litigation
in the District of Columbia Circuit Court of Appeals against the International Bank for Reconstruction and
Development and its auditor, KPMG, in order to bring the IBRD into compliance.http://kahudes.net/case-
in-court-of-appeals/ An April 8, 2005 letter to the World Bank stated, "The Joint Economic Committee of
the US Congress has received credible evidence indicating that the World Bank has experienced
accounting problems involving its borrowing, investment, and lending activities over a number of years."
Senators Lugar, Leahy and Bayh requested a GAO inquiry in 2008, which the World Bank simply
stonewalled. "In March 2009, GAO staff stated that 'we cannot begin this work because of challenges we
recently faced in gaining access to World Bank officials to discuss these types of questions. We are
continuing to negotiate access with World Bank officials but this process is likely to take at least several
months.’ Senator Lugar’s staff continues to press the World Bank and GAO to begin this report during the
first half of 2010." See page 18 http://www.foreignpolicy.com/files/fp_uploaded_images/int_fin_inst2.pdf

US taxpayers are calling for an end to corruption at the World Bank.

http://www.ntu.org/governmentbytes/government-reform/whistleblower-protections-a1220.html Congress
sanctioned the Treasury Department for its inaccurate report to the Appropriations Committees dated
November 21, 2012 on World Bank Reform pursuant to Section 7082 of the Consolidated Appropriations
Act, 2012 (Pub. L. 112-74). https://docs.google.com/file/d/0Bzss7Q0pShvzWmE5Rlp1NVdMQlk/edit

The World Bank intimidated any accountant or lawyer, including the International Finance Corporation's
General Counsel, who tried to correct inaccurate financial information.
http://www.commondreams.org/newswire/2010/04/06-3
The Court of Appeals' clerk ignored the Board of Governors' decision to settle the litigation and bring the
IBRD into compliance. Instead of entering the settlement into the docket, the Clerk entered an
unpublished opinion issued by a panel consisting of Judges Garland, Williams and Randolph one day
after this statement in Foreign Policy:
http://thecable.foreignpolicy.com/posts/2012/11/07/the_romney_national_security_transition_team_that_
might_have_been?wp_login_redirect=0
"I have requested the Board of the World Bank to remove this litigation from the DC Circuit Court of
Appeals.The World Bank's General Counsel, who is supervising the litigation, is part of the internal control
lapses.I have testified before the European Parliament and the UK Parliament posted my evidence on its
website twice. The latest testimony was published on November 2, 2012 and is at:
http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubadm/writev/publicpolicy/m03.htm"
The 50 Governors and Attorneys General are also trying to bring the World Bank into compliance under
blue sky laws.

Read more:
http://feedproxy.google.com/~r/JohnBrownesMarketCommentary/~3/hQje8c7L7gw/german_gold_claw_b
ack_causes_concern#ixzz2IswfWbZG

12
On January 22, 2013, I was on Spingola Speaks; the two podcasts dated 1/22/2013 are listed on the
following website: www.kahudes.net

I am also on a blog by the National Taxpayers' Union:

http://www.ntu.org/governmentbytes/detail/whistleblower-protections-a-living-example-
of-their-relevance

---------- Forwarded message ----------

From: Karen Hudes
Date: Thu, Jan 24, 2013 at 6:47 AM
Subject: Please ask Senator Kerry/Secretary Clinton what he/she intends to do about the crisis in the
translatlantic alliance caused by corruption and improper accounting at the World Bank
To: robert_kelly@menendez.senate.gov, daniel_o'brien@menendez.senate.gov, priscilla_ross@cardin.se
nate.gov

I would appreciate if the above question could be entered into the record.

This unresolved matter, with Senators Mendez and Cardin for many years, is also causing a constitutional
crisis. See attached

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Thu, Jan 10, 2013 at 9:52 AM
Subject: Handshake
To: geoffrey.harris@ep.europa.eu
Cc: dquam@nga.org, andrew.lippstone@state.de.us

Dear Mr. Harris,

Yesterday I spoke with Mr. David Quam, Director of the National Governors
Association's Office of Federal Relations, and with Governor Jack Markell, Chair of
the National Governors Association, about bringing the International Bank for
Reconstruction and Development into compliance with states' blue sky securities
laws.

I am copying Mr. Andrew Lippstone, Governor Markell's Chief Legal Counsel.

Sincerely,
Karen Hudes
Law Offices of Karen Hudes
www.kahudes.net

https://docs.google.com/open?id=0Bzss7Q0pShvzejNWLWR3Yjljdmc

--------- Forwarded message ----------

From: Karen Hudes
Date: Tue, Jan 15, 2013 at 8:31 AM
Subject: Congress and States are Bringing the World Bank into Compliance
To: alan_hanson@shelby.senate.gov, david_young@grassley.senate.gov, rick_dearbor

13
n@sessions.senate.gov, Karen_Billups@murkowski.senate.gov, David_Ramseur@begi
ch.senate.gov, paul_cancienne@mccain.senate.gov,Steve_Voller@flake.senate.gov, A
ndy_York@pryor.senate.gov, matt_sagely@boozman.senate.gov, Chris_Thompson@fe
instein.senate.gov, Chad_wallace@boxer.senate.gov, sarah_moffat@feinstein.senate.g
ov, Laura_Schiller@boxer.senate.gov,Michael_Sozan@udall.senate.gov, Jonathan_Da
vidson@bennet.senate.gov, laurie_rubiner@blumenthal.senate.gov, Francis_Creighton
@murphy.senate.gov, Jim_Reilly@carper.senate.gov, Todd_Webster@coons.senate.g
ov,Pete_Mitchell@nelson.senate.gov, cesar_conda@rubio.senate.gov, Charlie_Harman
@chambliss.senate.gov, Teresa_Ervin@chambliss.senate.gov, chris_carr@isakson.se
nate.gov, andy_winer@schatz.senate.gov, Betsy_Lin@hirono.senate.gov,Susan_Wheel
er@crapo.senate.gov, John_Sandy@risch.senate.gov, patrick_souders@durbin.senate.
gov, Kate_Dickens@kirk.senate.gov, Dean_Hingson@coats.senate.gov, Joel_Elliott@d
onnelly.senate.gov, Brian_Ahlberg@harkin.senate.gov,Jackie_Cottrell@roberts.senate.
gov, Todd_Novascone@moran.senate.gov, Josh_Holmes@mcconnell.senate.gov, Dou
g_Stafford@paul.senate.gov, Jane_Campbell@landrieu.senate.gov, Kyle_Ruckert@vitt
er.senate.gov, steve_abbott@collins.senate.gov, kay_rand@king.senate.gov, Rachel_
MacKnight@mikulski.senate.gov, Marianne_Kreitner@mikulski.senate.gov, Chris_Lync
h@cardin.senate.gov, Mindy_Myers@warren.senate.gov, David_lyles@levin.senate.go
v, Amanda_Renteria@stabenow.senate.gov, Jonathan_Becker@klobuchar.senate.gov,
Casey_Adenansbury@franken.senate.gov, Steven_Wall@cochran.senate.gov, michelle
_barlow@wicker.senate.gov, julie_dwyer@mccaskill.senate.gov, Glen_Chambers@blu
nt.senate.gov,Paul_Wilkins@bauchus.senate.gov, mollie_binotto@tester.senate.gov, to
m_lopach@tester.senate.gov, kathline_amacio@johanns.senate.gov, tim_becker@joha
nns.senate.gov, Mike_Hybl@fischer.senate.gov, david_krone@reid.senate.gov,bill_dau
ster@reid.senate.gov, josh_finestone@heller.senate.gov, leonardo_benavides@heller.s
enate.gov, mac_abrams@heller.senate.gov, erica_anhalt@shaheen.senate.gov, Maura
_Keefe@shaheen.senate.gov, John_Easton@ayotte.senate.gov,judy_rainey@lautenbe
rg.senate.gov, dan_katz@lautenberg.senate.gov, daniel_o'brien@menendez.senate.go
v, Michael_Collins@udall.senate.gov, Steve_Haro@heinrich.senate.gov, mike_lynch@s
chumer.senate.gov, jess_fassler@gillibrand.senate.gov, chris_joyner@burr.senate.gov,
crystal_king@hagan.senate.gov, sara_garland@conrad.senate.gov, elizabeth_gore@d
organ.senate.gov, mark_powden@brown.senate.gov, Ryan_Jackson@inhofe.senate.go
v,Brian_Treat@coburn.senate.gov, Joshua_Sheinkman@wyden.senate.gov, Michael_Z
amore@merkley.senate.gov, james_brown@casey.senate.gov, Christopher_Gahan@to
omey.senate.gov, Neil_Campbell@reed.senate.gov,Sam_Goodstein@whitehouse.sena
te.gov, Richard_Perry@graham.senate.gov, Kimberly_Wallner@scott.senate.gov, Drey
_Samuelson@johnson.senate.gov, Ryan_Nelson@thune.senate.gov, Ryan_Loskarn@
alexander.senate.gov,Todd_Womack@corker.senate.gov, Beth_Jafari@cornyn.senate.
gov, Chip_Roy@cruz.senate.gov, Michael_Kennedy@hatch.senate.gov, Spencer_Stok
es@lee.senate.gov, John_Dowd@leahy.senate.gov, Michaele_Crowell@sanders.senat
e.gov,Jacob_Lew@sanders.senate.gov, Luke_Albee@warner.senate.gov, Mike_Henry
@kaine.senate.gov, Mike_Spahn@washington.senate.gov, Jennifer_Griffith@cantwell.s
enate.gov

On December 20, 2012 I informed the Senate and House Appropriations Committees:
"The Treasury Department should be sanctioned for its report to the Appropriations Committees
dated November 21, 2012 on World Bank Reform pursuant to Section 7082 of the Consolidated
14
Appropriations Act, 2012 (Pub. L. 112-74). The uncertified report is inaccurate in all material
respects." See https://docs.google.com/file/d/0Bzss7Q0pShvzWmE5Rlp1NVdMQlk/edit

I testified on the corruption at the World Bank to the European Parliament:

http://www.europarl.europa.eu/document/activities/cont/201105/20110518ATT19540/20110518
ATT19540EN.pdf

And the UK Parliament:

http://www.publications.parliament.uk/pa/cm201213/cmselect/cmintdev/writev/402/contents.htm
http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubadm/writev/publicpolicy/
m03.htm
The rest of the world settled my appeal in the DC Circuit Court of Appeals, but court records
do not yet reflect this fact. US taxpayers associations in the National Taxpayers Union are fully
briefed
http://www.ntu.org/governmentbytes/detail/whistleblower-protections-a-living-example-of-their-
relevance So is Justice Stephen Breyer, the Chief Justices of the State Supreme Courts, and the
National Center for State Courts.
See: https://docs.google.com/file/d/0Bzss7Q0pShvzaTJMQWFfcWNFS28/edit

Sincerely,
Karen Hudes
---------- Forwarded message ----------
From: Karen Hudes <->
Date: Sat, Feb 9, 2013 at 11:15 AM
Subject: Paul Craig Roberts http://www.paulcraigroberts.org
To: Larry Garrison

Lar,

I think our days of herding cats is now over. I spoke with Governor Brown's people
yesterday, and I think California may be joining the rest of the pack of states that are
finally fighting the corruption that got us into this mess.

I just heard back from a former Assistant in US Treasury. Somebody somewhere in

the media should be ready to roll with this.

Kar

---------- Forwarded message ----------

From: Karen Hudes
Date: Sat, Feb 9, 2013 at 11:07 AM
Subject: Avoiding a currency war
To: instituteforpe@gmail.com

Dear Paul,

15
Thank you for responding to my email. The state governments now seem to
understand the risk of a currency war and how we created this risk through corruption in
the Bretton Woods institutions.

Here is where things stand with the Governors and Attorneys General. The secretariat
of the Conference of Chief Justices is the National Center for State Courts. NCSC is
refusing to accept emails from me, so I send them friendly faxes instead.

It is a simple matter to acknowledge what we did and pull back from the precipice. But
for this to happen, it is necessary to brief the public. The National Taxpayers
Associations are fully briefed, http://www.ntu.org/governmentbytes/detail/whistleblower-
protections-a-living-example-of-their-relevance
but I do not want to tire them with more and more emails. I have sent them five emails
already.

If you are near Washington, DC, perhaps we could meet?

Best,
Karen

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Sat, Feb 9, 2013 at 10:37 AM
Subject: http://kahudes.net/wp-content/uploads/2013/01/ljudicialconference1.pdf
To: ccj@ncsc.dni.us

After consulting several staff in the Conference of Chief Justices and National
Center for State Courts, I was advised to contact Ms. Farley on this matter. I just
received the attached email notice.
How does NCSC justify recusing the CCJ from a Constitutional law issue under
consideration by the National Governors Association and the National Association of
Attorneys General?
NCSC may not interfere with consultation in the CCJ among the highest judicial officers
of the states on a matter of import.

Sincerely,
Karen Hudes

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Sat, Feb 9, 2013 at 6:05 AM
Subject: Compliance of the World Bank
To: frank.mcguire@jud.ca.gov

16
I have also been in contact with Ms. Kamala Harris concerning enforcement of
California's blue sky laws and with Mr. Mark Paxson, General Counsel, California State
Treasurer's Office. California's State Pension owns bonds issued by the International
Bank for Reconstruction and Development. Correspondence with state attorneys
general can be viewed at http://kahudes.net/wp-content/uploads/2012/05/exhibit12.pdf

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Fri, Feb 8, 2013 at 6:26 AM
Subject: Abuses of Authority at the World Bank
To: dllr@dllr.state.md.us
Cc: julia_frifeld@mikulski.senate.gov, Shannon_Kula@mikulski.senate.gov, Catie_Finle
y@mikulski.senate.gov, Jean_Doyle@mikulski.senate.gov, Rachel_MacKnight@mikuls
ki.senate.gov, Christopher_Lynch@cardin.senate.gov, Debbie_Yamada@cardin.senate
.gov, Priscilla_Ross@cardin.senate.gov, Sue_Walitsky@mikulski.senate.gov, oag@oag
.state.md.us

To: Mr. Leonard J. Howie III

Dear Mr. Howie,

Thank you for your letter of January 29, 2013, attached for your ready reference.
The abuses I have been reporting to Governor O'Malley concern the Maryland
Securities Act, COMAR Title 2 Subtitle 02, as per the attached fax of November 11,
2012 to Ms. Melanie Lubin, Maryland's Securities Commissioner. I have reported to the
other Governors violations under their respective blue sky laws as well. The violation of
federal and state securities laws, as well as the securities laws of other nations with
jurisdiction over IBRD's $135 billion issued on their respective capital markets, is about
to plunge the world into a currency war. On January 14, 2013 Germany announced the
repatriation of 674 tons of gold valued at $17.9 billion from the New York Federal
Reserve. The state of Virginia is investigating the feasibility of issuing its own currency
in the event of a crisis in the dollar.

I am also forwarding for your information:

• my email of December 4, 2012 requesting Senator Mikulski's assistance in

restoring rule of law at the World Bank and bringing the International Bank for
Reconstruction and Development into compliance
• my fax of February 3, 2013 informing Honorable Robert M. Bell, Chief
Judge, Court of Appeals of Maryland, of the US' refusal to implement the
decision of the Board of Governors of the World Bank. Similar faxes went to the
other Chief Justices and to the Conference of Chief Justices
• my testimony in the UK and EU Parliaments:

17
 http://www.parliament.uk/documents/commons-committees/public-administration/Complaints-1-
consolidated-13-sept.pdf

http://www.publications.parliament.uk/pa/cm201213/cmselect/cmintdev/writev/402/contents.htm

http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubadm/writev/publicpolicy/m03.htm

http://www.europarl.europa.eu/document/activities/cont/201105/20110518ATT19540/20110518A
TT19540EN.pdf

I am copying staff of Senators Mikulski and Cardin and Attorney General Gansler in
the confidence that I and other World Bank bondholders in Maryland will now have
access to accurate financial statements.

Sincerely,
Karen Hudes
www.kahudes.net

Mr. Zoellick stonewalled a GAO investigation

http://citizenoversight.com/pdf/blwb.pdf into corruption at the World Bank requested
by Senators Lugar, Leahy and Bayh. Paul Volcker's investigation into this
corruption was discredited http://www.commondreams.org/newswire/2010/04/06-3 With
corruption at the World Bank, the United States lost the 66 year old
Gentlemen's Agreement for the US to appoint the president of the World
Bank http://www.imf.org/external/np/cm/2010/042510.htm

---------- Forwarded message ----------

From: Karen Hudes
Date: Tue, Dec 4, 2012 at 3:43 AM
Subject: Abuses of Authority at the World Bank
To: julia_frifeld@mikulski.senate.gov

I spoke with the offices of the Senate Select Committee on Intelligence about this
problem last week. The US credit rating is at risk because of this festering problem. Dr.
Kim is further jeopardizing the continued US presidency at the World Bank.

---------- Forwarded message ----------

From: Karen Hudes
Date: Tue, Dec 4, 2012 at 2:37 AM
Subject: Will you help me go back to the World Bank in order to correct corrupt abuses
of authority?
To: thomas_caballero <thomas_caballero@legal.senate.gov>

The Board of Executive Directors asked me to restore rule of law at the World Bank
after they were threatened for removing Paul Wolfowitz from the Presidency of the
World Bank. Here is my contemporaneous email to Robert Post, the Dean of Yale Law

18
School. I am also forwarding my email today to Maryland's Attorney General, Doug
Gansler, President of the National Association of Attorneys General.

From: Karen Hudes

Sent: Sunday, October 14, 2007 10:29 PM
To: Dean of Yale Law School
Subject: Our Conversation

Per our conversation, here is some information concerning the Sarbanes Oxley scandal at the
World Bank. I would like to take you up on your kind offer of help in exposing this scandal to the
public. I am attaching a copy of my email I sent a month ago to the Wall Street Journal, but
WSJ did not correct their misleading story about the Volcker Panel's report.

In 2005 the Dutch Government asked the Audit Committee to end a campaign of retaliation
against me for reporting to the Executive Board about an inaccurate evaluation on a failed
Banking Sector project in the Philippines. I am attaching a chronology of the scandal. Senator
Lugar and the Senate Foreign Relations Committee have written three letters to the World Bank
on my behalf, asking for an end to the ongoing cover-up. I also met with Chris Armstrong in
Senate Finance, Jayme Roth in Senator Bayh's office, and Nicole Willet in Senator Clinton's
office. The Senate is asking GAO to investigate the World Bank in this year's appropriations
legislation, and requiring an independent audit of the World Bank's internal controls.

The Audit Committee referred my case to the Bank's Institutional Integrity Department
(INT). INT, which reports to the President of the World Bank, is used to intimidate staff. Paul
Volcker ignored INT's sinister role and simply recommended that whistleblower retaliation cases
should be removed from INT's mandate.

I met with the Ministry of Foreign Affairs of the Dutch Government on September 24,
2007. The Dutch are not happy with the Volcker Report and the ongoing cover-up. Moreover ,
the current and previous Dutch Executive Directors, Herman Wijffels and Ad Melkert, disclosed
that "third parties" attempted to intimidate them and other members of the World Bank's Board
through shocking invasions of their private lives. I attach a translation of these stories. If the US
violated the safe-conduct normally accorded to diplomats, it would be a great breach of honor.
Article VII, Section 8 of the World Bank's Articles provides immunities to Executive Directors,
officers and staff.

I saw that Ben Heineman (who was a member of the Volcker Panel) spoke at the Law
School on October 5th. On October 8th, at the suggestion of minority staff on the Senate
Foreign Relations Committee, I contacted Kenneth Peel at Treasury, to encourage the Bush
Administration to end the cover-up on the Philippines Banking Sector Reform Loan and restore
the rule of law to the Bank.

I also attach the following documents:

A press release
An annotated version of the World Bank's Administrative Tribunal decision on my case (I
have another ongoing case in which the Bank's Legal Department falsified important documents
and then objected to the jurisdiction of the Tribunal based on the false documentation)
My letter to the Volcker Panel requesting an end to the cover-up
My memorandum to the Institutional Integrity Department

19
 A memo concerning rule of law at the World Bank

Thanks again for your offer of help. Best, Karen

From: Karen Hudes

To: bstephens@WSJ.com
Subject: Fwd: Volcker Panel
Date: Tue, 04 Sep 2007 23:28:44 -0400
Dear Bret,

I am a regular reader of your column, and wanted to set you straight about my next-door
neighbor, Suzanne Folsom, and her role as Director of the World Bank's Institutional Integrity
Department. INT's function under Ms. Folsom is not as you described in your column today.
Ms. Folsom has continued to direct INT along the same lines as her predecessor Marteen de
Jong: as a "goon squad" that intimidates any staff member who steps out of line and informs the
Board of Directors about what is actually happening at the World Bank.

Until August 1, 2007 I was in-house counsel at the World Bank, and fulfilled my ethical
obligations to report to the Audit Committee about a cover-up on a failed Banking project in the
Philippines which resulted in the corrupt take-over of the second largest Bank in the
Philippines, a $493 million bail-out from Philippines Deposit Insurance Corporation when
depositors lost confidence in Philippines National Bank, the cancellation of $200 million from the
World Bank's associated loan to the Government of the Philippines, and the cancellation of
$200 million in financing from Japan.

Instead of defending me, INT attacked me in a flawed report to the Audit Committee. I am
not the only whistleblower whom INT has attacked. The Senate is fully aware of this scandal at
the World Bank, which served as a poignant backdrop to Mr. Wolfowitz' forced departure. The
Europeans are withdrawing their funding from the World Bank in favor of the European
Investment Bank as a result of these severe governance issues. Relevant documentation is
attached to this email.

Because of AOL's limitation on the size of files that may be attached to emails, I will forward
other supporting documentation to you separately.

Sincerely, Karen Hudes

-----Original Message-----
From: Karen Hudes
To: benjamin.heineman@wilmerhale.com; melitot@gao.gov; derek_dorn@lieberman.senate.go
v; nicole_wilett@clinon.senate.gov; Tim_Rieser@appro.senate.gov
Cc: thomas_novelli@finance-rep.senate.gov; Chris_Armstrong@finance-
rep.senate.gov; Keith_Luse@foreign.senate.gov; jay_branegan@foreign.senate.gov; tom_croh
an@kennedy.senate.gov

20
Sent: Thu, Aug 30 10:01 PM
Subject: Volcker Panel

Dear Mr. Heineman,

I have informed the Senate about the World Bank's failure to prevent the corrupt take-over of
Philippines National Bank during supervision of the Philippines Banking Sector Reform Loan
and the flawed report of the Institutional Integrity Department ("INT") to the Board's Audit
Committee on this serious matter. The Senate Foreign Relations Committee, concerned about
the US reputation for probity, wrote to the World Bank three times requesting an end to the
cover-up.

Ignoring recent legislation mandating whistleblower protections, the World Bank retaliated
against me after I continued to report internal control lapses up the management chain. Both
Messrs. Zoellick and Debevoise refused to provide the whistleblower protections that the Senate,
in fulfilling its oversight responsibilities, had specifically requested on my behalf. Ana Palacio,
the General Counsel, terminated my employment in the World Bank's Legal Department on July
31, 2007 after sabotaging my transfer to the External Affairs Department, where I was to
establish a global partnership involving the American Bar Association, the International Legal
Assistance Consortium, the UNDP, the State Department, and the Center for International Legal
Cooperation.

I have devoted my career to the World Bank, designed as a cornerstone of the global public
commons when it was created at the end of World War II. Paul Volcker's interim report failed to
address INT 's sinister role in attacking whistleblowers, widely understood by staff and members
of the Board alike. The documentation on my case leaves no doubt about INT's lack of
integrity, but there are other cases that provide serious indictments of INT as well. The
Europeans have been withdrawing their support from the World Bank in favor of the European
Investment Bank as a consequence of the failure of the US to play by the rules within the Bank.

A highly accurate stakeholder analysis has predicted that the Gentleman's Agreement,
whereby the US appoints the president of the World Bank and Europeans appoint the managing
director of the IMF, will not continue if the US continues to circumvent the rule of law at the
World Bank. I am forwarding a copy of this stakeholder analysis (see page 17 of attached
Correspondence), which I have also provided to the Senate and State Department.

On July 23, at an open meeting of the Legal Department, Mr. Zoellick asked me whether the
World Bank has a Sarbanes Oxley problem, and then asked me to help him solve it when I
answered his question in the affirmative. I am requesting the Volcker Panel to carry out its
mandate by ending the cover-up on the Philippines Banking Sector Reform Loan and resolving
the associated internal control lapses and governance crisis within the World Bank.

Sincerely,
Karen Hudes

---------- Forwarded message ----------

From: Karen Hudes <->

21
Date: Mon, Dec 3, 2012 at 10:20 AM
Subject: I am resending the fax because my signature was omitted inadvertently on the
form your office requested me to fill; I also forward an email to the European
Parliament's Washington office
To: securities@oag.state.md.us

---------- Forwarded message ----------

From: Karen Hudes
Date: Mon, Dec 3, 2012 at 7:26 AM
Subject: Will the European representatives on the Board of Executive Directors of the
World Bank support my reinstatement?
To: geoffrey.harris@ep.europa.eu
Cc: delegation-usa-info@eeas.europa.eu, CAB-ASHTON-
ARES@ec.europa.eu, peteris.ustubs@ec.europa.eu, christopher.jones@ec.europa.eu,
antti.karhunen@ec.europa.eu

Dear Mr. Harris,

I am forwarding email correspondence with Hans Wabnitz, a German lawyer that I

worked with in the World Bank's Legal Department who is in touch with his government.
I am also forwarding email correspondence with US authorities, the International
Organization of Supreme Audit Institutions, and with the World Bank's credit rating
agencies.

May I call you this morning?

Sincerely,
Karen Hudes

------ Forwarded message ----------

From: hans wabnitz
Date: Mon, Dec 3, 2012 at 5:38 AM
Subject: Re: Next Steps: re-instate : ok, I gathered as much - but
To: Karen Hudes <->

22
one never knows - -

Karen, from the long story over time I gathered as much, and also your smart move via
the bondholder -
but I was not sure,
and your last messages make the story very succinct and easy to follow for newcomer,
such as the Ambassador Mr Ammon and the German ED's.

I shall tackle this important issue.

keep pounding -
hans

On Sun, Dec 2, 2012 at 11:07 PM, Karen Hudes <-> wrote:

Dear Hans,

Yes, I brought the lawsuit, against IBRD, and against KPMG, its auditor. The lower
court held the Bank was immune, ignoring that I own a World Bank bond and IBRD has
no immunity against bondholders. As a bondholder I am entitled to accurate financial
information. The court did not consider the fact that KPMG did not follow generally
accepted auditing standards (KPMG refused to allow me to inform KPMG's audit team
that the World Bank refused to cooperate with a Government Accountability Office audit
requested by 3 Senators -- the Staff Association was on record that staff were too
intimidated to report misconduct after the Bank forged documents) Appellate courts that
review summary dismissals are required to review the case de novo. The Appeals Court
could not simply affirm without giving a reasoned opinion because the standard of
review required the court to consider all of the issues I raised afresh as if the lower court
had not decided the case at all. This is in my Reply brief. http://kahudes.net/wp-
content/uploads/2012/10/appeal119.pdf
What I mean by reinstate is what the US Congress requires in appropriations legislation
for the US contribution to the capital increase: "results that eliminate the effects of
retaliation" See http://www.whistleblower.org/blog/42/1707
Thanks again.

Best,
Karen

On Sun, Dec 2, 2012 at 3:07 PM, hans wabnitz wrote:

or is that a term in the current legal battle you have infornt of the courts ?
If you say the Appeals Court did not review the facts - I take it that the first court ruled
against you ?
But what was the argument before that first court ?
And did you sue the Bank, or vice versa ?

23
So I shall try to email the German ED and Vice - of which you gave me the names. But I
would need to understand what you mean by <reinstate>

cheers,
hans

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Sun, Dec 2, 2012 at 2:44 PM
Subject: Next Steps
To: Baltimore <Baltimore@ic.fbi.gov>, Washington Field
<washington.field@ic.fbi.gov>, fmulhauser@aol.com, thomas_caballero
<thomas_caballero@legal.senate.gov>

I have blind copied the German Executive Director and the Executive Director of
Sweden's International Legal Assistance Consortium. The American Bar Association is
a member of ILAC.
---------- Forwarded message ----------
From: Karen Hudes <->
Date: Sun, Dec 2, 2012 at 2:25 PM
Subject: Next Steps
To: Hans Wabnitz
Bcc: ihoven <ihoven@worldbank.org>, International Legal Assistance Consortium

Hans,

I'll need all the luck I can get. Robert Zoellick illegally locked me out after I met with
the Chair of COGAM and the Board tried to reinstate me in 2009, following my
meetings with the Chair of the Audit Committee, the Chair of the Board's Ethics
Committee (now the Dean of the Board) and the Chair of the Committee on
Development Effectiveness. That is when I bought an IBRD bond and sued the IBRD
and its auditors KPMG for breach of the securities laws. The US Court of Appeals
canceled oral arguments and simply affirmed the decision of the lower court without an
opinion, although the Appeals Court is required to look at my case de novo. This is
highly irregular, to put it mildly.

This illegality is before US Congress as well as 3 million judges and lawyers in the
Swedish International Legal Assistance Consortium http://kahudes.net/case-in-court-of-
appeals/ The UK Parliament has published two of my statements, and I testified for the
European Parliament. KPMG is under investigation by the Financial Reporting Council
in the UK. I have until December 20 to ask the US Court of Appeals to reconsider its
decision. Instead, I asked the officials who attended the launch of the World Justice Project
on November 28, 2012 (See minute 1:29:30) to contact their Executive Directors so that
the Board would affirm its decision to reinstate me in 2009.

24
http://www.youtube.com/watch?feature=player_embedded&v=BFu4dseulqE#!

I have also asked Elaine for the UK's new ED, Gwen Hines, to admit me.

What if the situation simply festers? Reputational risk, lowering of the IBRD's credit
rating, and 90-95% chance of a currency war. Thanks in advance for any help.

Karen

On Sun, Dec 2, 2012 at 1:37 PM, Hans Wabnitz wrote:

Can the Ed's invite you ? Sure, why not ? Except I do not know any of them,
and have no contact with them either - but I think all staff and former staff ought to be
entitled ? Or are you officially <persona non grata> ?

Maybe the inviting unit is afraid of you ?

But it is always worth trying -

good luck -
hans

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Sun, Dec 2, 2012 at 1:34 PM
Subject: Fwd: What Next?
To: colville elaine

Elaine,

Yes, IFC clearly has a conflict, and uses IDA subsidies from the World's taxpayers
to fleece both the taxpayers and IFC member countries.

Would Gwen Hines (the new UK ED) also admit me to the atrium? Here's what I
wrote Hans Wabnitz:

Best,
Karen

On Sun, Dec 2, 2012 at 12:11 PM, E Colville wrote:

Karen,

Thanks for this.

25
Intrigued by the MSME project Nigeria and links to IFC I checked out on-line documents
at: http://documents.worldbank.org/curated/en/docsearch?query=IDA%20MSME%20Ni
geria

This may interest - an acknowledgement in 2010 and 2011 of poor project design and
slow disbursements requiring extensions:
http://www-
wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/06/08/0003330
38_20100608235624/Rendered/PDF/549480PJPR0P0810Restructuring0Paper.pdf
http://documents.worldbank.org/curated/en/2011/02/13887980/nigeria-micro-small-
medium-enterprise-project-restructuring-vol-1-2-main-report

I'm seeing with ever-increasing clarity the racket that are these Bank/IFC TA
programmes; why my questioning way back in 2001 of duplication of poorly designed
TA activities by the Bank and IFC, using non-technical experts, went down like a lead
balloon. Why INT, the Board and DFID refuse to investigate.

Elaine

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Sun, Dec 2, 2012 at 1:27 PM
Subject: What Next?
To: Hans Wabnitz

Hans,

Do you think the German ED's office can admit me to the atrium? Here's what I sent
the Dean of the Board and the Dutch ED. I am also forwarding what I sent to the US
Congress. I did not hear back from my four colleagues who worked with me during
Barack Obama's campaign at Organizing for America, nor did I hear from Doug Keare,
the former division chief in the Middle East North Africa Region I used to work with, who
contacted me after I wrote to all the World Bank retirees, because he is also a friend of
Dr. Kim from Dartmouth.

Karen

On Sun, Dec 2, 2012 at 12:06 PM, Hans Wabnitz wrote:

They'll be <delighted> to see you in the front row (!)

hw

26
---------- Forwarded message ----------
From: Karen Hudes
Date: Sun, Dec 2, 2012 at 10:47 AM
Subject: Credit Ratings
To: thomas_caballero@legal.senate.gov, info.clerkweb@mail.house.gov, Tabarrok@g
mu.edu, paul_cancienne@mccain.senate.gov, laurie_rubiner@blumenthal.senate.gov
Cc: Baltimore <Baltimore@ic.fbi.gov>

This is to the World Bank's Independent Evaluation Department; at the foot of the email
is another chain of emails concerning the cover-up to US taxpayers and failure to apply
conditionality for appropriations on the World Bank capital increase.

---------- Forwarded message ----------

From: Karen Hudes
Date: Sun, Dec 2, 2012 at 9:56 AM
Subject: Fwd: Dedication of MC Atrium to James D. Wolfensohn 12/3/12
To: Rscobey@worldbank.org

---------- Forwarded message ----------

From: <cheider@worldbank.org>
Date: Sun, Dec 2, 2012 at 8:28 AM
Subject: AUTO: Caroline Heider is out of the office (returning 12/17/2012 08:00 AM)
I am out of the office from 11/21/2012 03:00 PM until 12/17/2012 08:00 AM.

While I'm away from the office until Monday, Dec. 17, Rick Scobey, Deputy to the
Director-General (Rscobey@worldbank.org) has kindly agreed to act on my behalf.
---------- Forwarded message ----------
From: Karen Hudes <->

Date: Sun, Dec 2, 2012 at 8:59 AM

Subject: Dedication of MC Atrium to James D. Wolfensohn 12/3/12
To: intosai@rechnungshof.gv.at, sharon.raj@fitchratings.com, rebecca.mirza@fitchratin
gs.com, elizabeth.mccarroll@moodys.com, jamie.kogan@moodys.com, rosaleen_manz
i@sandp.com, trevor.pijper@moodys.com, paul_coughlin@standardandpoors.com, mel
itot@gao.gov
Cc: rtreffers@worldbank.org, mhasan@worldbank.org, abrandt
<abrandt1@worldbank.org>, abhattacharya@g24.org
bcc: Keith_Luse@foreign.senate.gov,
National Taxpayers Union
mmccurry@psw-inc.com
My question for INTOSAI and IBRD's credit rating agencies is what prospect do you see
for improving the World Bank's internal control over financial reporting with this tone at
the top?

When INTOSAI's protocols

http://www.issai.org/media(802,1033)/INTOSAI_GOV_9150_E.pdf for this investigation

27
into corruption commissioned in 2008 by three senators
http://citizenoversight.com/pdf/blwb.pdf remain on hold
http://www.foreign.senate.gov/imo/media/doc/55285.pdf (see page 18) ?

---------- Forwarded message ----------

From: Karen Hudes <->
Date: Sun, Dec 2, 2012 at 8:27 AM
Subject: Dedication of MC Atrium to James D. Wolfensohn 12/3/12
To: lfrigenti@worldbank.org, eds01@worldbank.org, eds02@worldbank.org, eds03@wo
rldbank.org, eds04@worldbank.org, eds05@worldbank.org, eds06@worldbank.org, eds
07@worldbank.org, eds08@worldbank.org, eds09@worldbank.org, eds10@worldbank.
org, eds11@worldbank.org, eds12@worldbank.org, eds13@worldbank.org, eds14@wo
rldbank.org, eds15@worldbank.org, eds16@worldbank.org, eds17@worldbank.org, eds
18@worldbank.org, eds19@worldbank.org, eds20@worldbank.org, eds21@worldbank.
org, eds22@worldbank.org, eds23@worldbank.org, eds24@worldbank.org, eds25@wo
rldbank.org
Cc: cheider@worldbank.org, devcom@worldbank.org, Chair of Development
Committee1Society@worldbank.org
Bcc: Elaine Colville, pierre.vimont@eeas.europa.eu, Hans
Wabnitz, elizabeth.noel@fco.gov.uk, g@mfa.no, dmm-if@minbuza.nl, dsh@minbuza.nl, dsh-
sr@minbuza.nl,
jos.van.dongen@vara.nl, jan-willem-
le.grand@minbuza.nl, dhkeare56@earthlink.net, intosai.donor.secretariat@idi.no, International Legal
Assistance Consortium, CAB-ASHTON-
ARES@ec.europa.eu, antti.karhunen@ec.europa.eu, melitot@gao.gov,
peteris.ustubs@ec.europa.eu, christopher.jones@ec.europa.eu, Larry Garrison >

I am happy to join Dr. Kim and the Executive Directors tomorrow for the dedication of the MC Atrium. My
question for Internal Communications in advance of the celebration is who initiated this event and what
specifically in the legacy of James D. Wolfensohn is to be commemmorated?

Karen Hudes

-----Original Message-----
From: 1818 Society <1society@worldbank.org>
To: kahudes <Karen Hudes>
Sent: Fri, Nov 30, 2012 4:42 pm
Subject: Dedication of MC Atrium to James D. Wolfensohn 12/3/12

Dear members,

28
We would like to share with you the following announcement made out today through the internal system
of the World Bank. Please note that this will be a standing event, no seating will be available.
Dear Colleagues,
I am pleased to invite you to join me for a conversation with former World Bank Group President, James
D. Wolfensohn, where, as approved by Executive Directors, we will also honor his legacy by dedicating
the Main Complex Atrium in his name.
Monday, December 3, 2012
3:00 to 4:00 pm
MC Atrium (soon to be) “James D. Wolfensohn Atrium”
All World Bank Group staff are invited to join us for this event as well as an informal gathering
immediately afterwards, from 4 to 5 pm, to celebrate this occasion with Jim Wolfensohn.
If you would like to submit questions for Jim to respond to at the event, please send them to Internal
Communications in advance of the event, no later than 12:00 pm (Washington time), Friday, November
30.
I look forward to you joining me for this event.
Jim Yong Kim

Enclosures: http://kahudes.net/wp-content/uploads/2012/05/press3.pdf

29