By The Blogging Hounds
A sweeping sanctions evasion scandal, now unraveling in U.S. courts, is exposing a deep and potentially treasonous network of corruption involving Standard Chartered Bank (SCB), the Federal Reserve, and now—New York Attorney General Letitia James.
At the heart of the controversy is $9.6 billion in illicit payments funneled through SCB’s New York City branch to Iranian regime entities and Hezbollah, both designated by the U.S. Treasury as state sponsors of terror. According to whistleblower evidence filed in the explosive federal case United States ex rel. Brutus Trading v. Standard Chartered Bank, these payments were deliberately hidden from regulators, violating U.S. sanctions law and the bank’s Deferred Prosecution Agreement (DPA).
But what’s even more shocking is the web of institutional cover-up—including alleged complicity from Letitia James, the Federal Reserve, and SWIFT officials—that allowed this financial pipeline to thrive under the radar.
Letitia James Knew—and Did Nothing
In early 2024, NYAG Letitia James and five top staff members, including Deputy Scott Spiegleman, were personally briefed—twice—by national security and sanctions experts, including bank whistleblowers, about the $9.6 billion in concealed payments. According to documented meeting records, James’s office acknowledged that these transactions were new violations not previously covered in SCB’s past settlements.
And yet, despite full awareness of the scale and national security implications, James did nothing. In fact, she reapproved SCB’s annual state banking license, greenlighting continued operations by a bank now confirmed to have actively supported America’s enemies.
Adding further suspicion, Spiegleman left the NYAG’s office later that year to join IBM, whose Promontory division advised SCB on concealing currency trades. IBM also runs tech infrastructure tied to the SWIFT payments system—a linchpin in global finance now under scrutiny for enabling this scandal.
Federal Reserve and SWIFT: Complicit or Incompetent?
Equally disturbing is the role of the Federal Reserve, which has failed to act despite SCB’s clear violations of OFAC regulations and terror sanctions.
The SWIFT system, quasi-regulated by the Fed under the Dodd-Frank Act, has come under fire for enabling the flow of illicit dollars. Cheri McGuire, now COO of SWIFT, previously worked at SCB—where she was allegedly directly involved in hiding these dollar trades. The Fed approved her promotion, despite her questionable track record.
SWIFT’s U.S. headquarters are located in Virginia, and sources report that the Eastern District of Virginia USA is weighing criminal investigations into its role in the scandal. Meanwhile, the Fed’s failure to enforce Maximum Pressure sanctions on Iran raises a serious question: Is the Fed deliberately undermining U.S. foreign policy?
The China-Iran Oil Connection
The SCB payments aren’t limited to historical transactions. According to the whistleblowers, the bank’s 53 branches in mainland China continue to facilitate illegal oil trade in U.S. dollars, helping China buy sanctioned Iranian oil, often used to fund weapons programs and regional proxy wars.
Despite U.S. law requiring all international oil purchases to be conducted in USD—and thereby subject to OFAC screening—SCB bypassed this safeguard using its NYC branch, clearing illicit funds with full knowledge of regulators.
This end-run around American financial controls is now seen as a critical failure of the “Maximum Pressure” policy against Iran. Treasury has been undermined not only by foreign adversaries—but by internal saboteurs within the Fed, SWIFT, and New York State.
Recommendations: A National Security Response Is Urgently Needed
Given the enormity of the crime and its geopolitical implications, national security advocates are calling for immediate and aggressive action:
- Direct USA Pirro (DCUSA) to prosecute SCB for breach of its Deferred Prosecution Agreement.
- Order SDNY Clayton to intervene in the active Second Circuit case and bring criminal charges.
- Retract enforcement authority from the Federal Reserve, returning it to Treasury to manage sanctions.
- Terminate the Fed’s operating agreement with SWIFT, and absorb its enforcement functions into Treasury.
- Seize and fine SCB for at least $10 billion, potentially more, in illicit proceeds and penalties.
Letitia James: Focused on Lawfare, Not Law Enforcement
While national security experts sounded the alarm, Letitia James was busy weaponizing her office for political lawfare—targeting President Trump, conservative charities, and religious organizations—all while ignoring billions flowing to Hezbollah and the Ayatollah.
The double standard is not just hypocritical; it’s criminal negligence, and possibly worse.
The same NYAG who claims to “defend the rule of law” has now been caught turning a blind eye to terrorist financing—even after being handed clear, documented evidence.
Prophetic Echoes: Babylon’s Financial Deception
Revelation 18 speaks of a day when the “merchants of the earth” are exposed for trafficking in souls and nations, enriching themselves through deception. Could this scandal be yet another sign that the world’s financial system—long corrupted by globalist greed—is beginning to collapse under its own weight?
Just as Babylon fell for its corruption, the modern-day financial empire is now teetering, dragged down by lies, cover-ups, and blood money.
Conclusion: The Biggest Financial Scandal No One Wants to Talk About
This case may be the most damning example of systemic betrayal by America’s regulators, central bankers, and political elites in decades. With over $9.6 billion already traced, and potentially $100 billion more in Chinese oil-linked payments yet to be uncovered, this scandal dwarfs previous banking crises in scope and threat.
Letitia James, the Federal Reserve, and SWIFT are not just negligent—they are complicit in a network that funds terror, evades justice, and undermines American sovereignty.
And yet—the media is silent.
TAKE ACTION
Call the Southern District of New York at 212-637-2200
Demand accountability in United States ex rel. Brutus Trading vs. Standard Chartered Bank.
Expose the enablers. Enforce the law.
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