PENTHOUSE INTERVIEW - FRANK TERPIL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP09S00048R000100020003-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: August 5, 2011
• Sequence Number: 3
• Publication Date: December 1, 1983
• Content Type: OPEN SOURCE

11 1 HiL.JiLl >UIL~ i i
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".ARTICLE APPEARED
PE'T10USE
December 1983 -
PENTHOUSE INTEEVIE
rank Terpil, a fugitive ex-CIA operative and one of the tart' uniforms, mercenaries,: and coups d'etat to the highest
id' most tint, erous and wanted men, is alive bidders. It was literally a cutthroat business, and it proved to
s
g
wor
and well and living ... from day to day ... in luxuri- be a profitable one as well. Within a few years of leaving the
A f rm r intelli ence adviser to deposed CIA. Terpil was a multimillionaire, concealing his wealth
e 9
h
ieing. o
ous
Ugandan dictator Idi Amin and to Libyan strongman Muam- through the anonymity of Swiss bank accounts and Liberian
mar eI-Oaddafi, Terpil moves incognito through a world that fronts while acquiring a Rolls-Royce, a small British hotel,
can only be compared to Robert Ludlum's fiction. He has objets d'art, and town houses in Washington, London, and
played host to Carlos ("The Jackal") Ramires;. he is a con- Paris.
sultans to the PLO. he has contacts in more than a dozen In the constellation of conspiracies known collectively as
foreign intelligence services on both sides of the ideological "the Wilson-Terpil case, Terpil remains the only indicted
curtain, and he was the onetime business partner of rene- conspirator still at large. Edwin Wilson, lured back to the
gade CIA agent Edwin P. Wilson. United States in 1982 by a canny federal prosecutor, pro-
Terpil became a fugitive in September 1980. He fled to ceeds from trial to trial, keeping his mouth shut while accu.
Syria to avoid trial on charges stemming from a scheme to mulating sentences of _ millenarian proportions. Gary
sell 10.000 British Sten guns to undercover detectives poi- Korkala, arrested in Spain earlier this year, was returned to
ing as revolutionaries. Terpil and an associate, Gary Kor. the United States with the proviso that he would receive a
kala, were both tried in absentia, ' in New York,' and new trial. Others implicated in the case have pleaded guilty
sentenced to fifty-three years in prison with the recommen- to a variety of charges, and some have entered the govern-
dation that neither man receive parole. That, however, was ment's Federal Witness Protection Program, and not a few
only one of the charges against Terpil. Other counts against have died-violently or unexpectedly. Among the. last-
him still outstanding involve the alleged training of terrorists. named: Kevin Mulcahy, the ex-CIA officer, whose ad hoc
in Libya, the illicit transfer of explosives aboard a commer investigation of the case led to Wilson's exposure, was..
cial airliner, violations of passport laws and the Foreign found dead at a motel in West Virginia; Waldo Dubberstein,
'Agents Registration Act, and solicitation to murder. a top analyst with the Defense Intelligence Agency from
Before the indictments came raining down upon him, Ter- whom Wilson allegedly purchased classified information for
pit was a respected; if somewhat mysterious. man of affairs. transmission to Libya, was-found dead of a shotgun wound,
Brooklyn-both and -bred, he retired from the CIA in 1971, apparently self-inflicted; and Rafael Villaverde, an anti-Cas-
having spent seven years as a cotnmunications'technician tro Cuban hit man, is presumed dead after an explosion at
in ttie inner sanctum of the.U.S. intelligence community, sea. off the coast of Bermuda.
Streetwise and ambitious, he was a natural entrepreneur, The importance of the Wilson-Terpil case goes tar be-
with a penchant for big houses, big cars, petite mistresses, yond the particular indictments brought to date. What is at
and enough servants to keep it all running smoothly. Well. issue is not only the question of who shot whom, and why.
liked, amoral, and superbly well connected, he became a but also the pattern of violent criminal activity. involving the
middleman in the international arms bazaar, supplying corruption of public officials in Congress, the military, and
weapons with silencing devices, binary explosives, poison the CIA; me sale of secrets and high-technology hardware
mili. to avowed enemies of the United States; and the extent to
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11y and the workings of the U.S
',government. As our interview with Frank
Terpil makes clear, there is a panoply of
questions that remain to be answered.
These questions concern the CIA's al-
leged involvement in opium trade; the re-
lationship between the CIA and the
mysterious Nugan Hand Bank: the use of
CIA personnel to train Mehmet Ali Agca,
the would-be assassin of the pope; Ed Wil-
son's relationship to South Korean intelli-
gence agent Tong Sun Park; the CIA's
apparent access to a stable of hired as-
sassins; and the acquisition of assassina-
tion weapons by an elite American military
unit stationed at Fort Bragg, N.C.
Because, of course. Frank Terpil did not
sell his wares to terrorists alone: U.S. gov-
ernment agencies were also among his
customers. Which raises the question: are
the CIA and the American military still in
the assassination business? If not, then
why would the latter commission Terpil to
acquire handguns that were not merely si-
lent but "sterile"-i.e., manufactured in
Switzerland and impossible to trace? So,
too, when it came time for Terpil to hire a
team of assassins to hit Libyan dissident
Umar Abdullah Muhayshi, ft was from a
pool of CIA contract agents that the intend-
ed hit men were selected. If the CIA is not
in the assassination business, then why
does it employ agents known precisely for
that expertise?
Penthouse: What was your life like before
you fled the States?
Terpil: I was an up-and-coming Washing-
ton millionaire, with all the assets: big
house, the right cars, the right address, of-
fice building,.all the respectable amenities
that go. with success in Washington.
Penthouse: And your business?
Terpil: Import-export. I also owned a man-
ufacturing business which aided law-en-
forcement agencies. I manufactured the
Denver boot [a tire-locking device], for
scofflaw parking violators.
Penthouse: Do you feel strongly about
scofflaws?
Terpil: I probably ... (Laughs) Do I feel
strongly about scofflaws?
Penthouse: Should someone who gets a
ticket pay his debt to society?
Terpil: Well, short of capital punishment
Penthouse: And yet, you're avoiding a
sentence of fifty-three years.
Terpil: I wasn't there to receive It, unfortu-
nately. I was planning to submit a blow-up
doll with a little mustache on it; they could
put the doll in for fifty-three years, but I
don't know who would keep it inflated.
Penthouse: Well, in prison you never
+know: Was this your first offense?
Terpit: Yes. With the exception of normal
juvenile delinquency.
Penthouse: What did you do as a juve-
nile?
Terpil: I sold a machine gun to an'under-
cover policeman in New York.
Penthouse: And twenty-five years later?
continents. The first meeting occurred in vity has been to make him an inveterate
the old-world atmosphere of a central-Eu- museumgoer and an omnivorous reader.
ropean country on the wrong side of the He exhausts the sights wherever he
iron curtain. The second meeting took goes-planning 'escape routes' on the
place on a small Caribbean island, at a way to, say, viewing a cathedral-and he
lavish resort hotel frequented by rock devours a book a day. Terpil seems to
stars and the very rich-including at least have come to terms, indeed to be at ease,
one other fugitive sought by Interpol. with the dangers and uncertainties that de-
Hougan reports: "In many ways Terpil fine his existence. Sought by Interpol, the
remains the same person that he was be- Mossad, and the CIA, he has been kid-
fore fleeing the United States, in 1980. A napped and released by Syrian intelli-
gifted raconteur with a million 'war sto- gence agents, shelled by the Israelis, and
ries.' each darker and funnier than its pre- sniped at by the Christian Phalangists, and
decessor, he is also a.candid critic of his he figures prominently on the hit lists of
own character. Unlike so many others former associates who fear what he
who have been implicated in the legion of knows.
conspiracies that make up the Wilson-Ter- "Sitting in a beach chair with a gin and
pil case, he does not claim to have been tonic in one hand and A Confederacy of
duped into criminality, nor does he sug- Dunces in his lap, Terpil looked during the
gest for a second (as others have) that he interview like any other tourist with money
was operating secretly on behalf of the to spend. The Rolex glistening on his wrist
CIA. He says he did what he did for the. suggested a certain solvency. Months in
money and for the excitement; which is to the tropical sun had bleached his hair and
say that, however amoral Terpil may be, tanned his body. The only thing that
hypocrisy is not one of his sins, seemed to bother him was his ever pre-
"Terpil's life, however, has changed. sent need of a gun. He carried it at the
As a fugitive who is never far from a war small of his back, wedged between his
zone, he is accustomed to traveling light. blue jeans and his tan, discreetly out of
Accordingly, he has little interest in the view under the flap of his sportshirt. Shift-
bulky status symbols of days gone by; in- ing his weight in the chair, he dug one of
deed, it is fair to say that Terpil is at this his feet into the white sand, sipped his
point one of the least materialistic men on drink, and nodded toward the yachts bob-
the planet. If it will not fit in his suitcase, he bing at anchor in the harbor. 'Bread
doesn't want it, because he knows that at alone,' he said, and grinned." {
Terpil: I sold another machine gun to an- Penthouse: One of the federal charges
other undercover policeman in New York. against you was conspiring to assassinate
Penthouse: But this time it was 10,003 . Umar Muhayshi, a Libyan dissident.
submachine guns. Terpil: I supposedly utilized three Cu-
Terpil: Yes, but the product was the same. banos who work for the agency. Their job.
Penthouse: Why did the authorities come was assassination. but on behalf of the
down so hard on you? Why are they trying United States government. ?:
so hard to get you back? Penthouse: Are you saying these Cubans
Tarpil: I think I was an enigma in their performed assassinations for the CIA?
minds. They really could not place me, be- Terpil: Yes. I asked-that's how we got
cause of my CIA background. I was a them. They were well known to the agen-
missing link in a puzzle they couldn't un- cy.
derstand..'The trial in Washington was Penthouse: Now, one of these Cubans,
rather peculiar in that there were forty-two 'Rafael "Chi-Chi Ouintero, claimed he
unindicted co-conspirators. was a party at a meeting in Rosslyn. Vir-
Penthouse: And you fled? ginia. and at that meeting a former CIA
Terpil: From the New York case. not from- agent was present. Who was that CIA
the federal case, agent?
Penthouse: What was different about it?. Terpil: Tom Clines. He had been director
Terpil: First, I tried to hire the best attorney of training for the CIA's clandestine ser-
available who had connections in City vices.
Hall. I understood that there would never Penthouse. Did that meeting have any-
be a trial, that the fix was already in. That I thing to do with Muhayshi?
would be required to pay $50,000 up Terpit: Yeah..
front, presumably to take care of Morgen- Penthouse: Rafael "Chi-Chi" Quintero
thau (Manhattan district attorney), City has since testified that he and one of the
Hall. and the underlings within the assis- other two Cubans, Rafael Viltaverde, were
tant prosecutor's office. And i1 was openly led to believe they were to kill Carlos, the
stated there would never be a trial. It terrorist
would just go away, it would die. Terpil: That's ridiculous. Carlos was never
Penthouse: You were told that? mentioned. The Cubans backed out in Ge-
Terpii: Yes. The fix was in. neva, and the backout was for one reason:
Penthouse: Why, then, did you become a they wanted to know it there were Cubans
fugitive? in Libya. At that time Oaddafi did have
Terpil: Ah, because there was going to be some Cubans there, who were acting as
a trial. ? ' his bodyguards. Rafael Villaverde Jumped
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up and sal.. '. ,>> .,~j, yVi?y 1V wu, n ,v< it w mienigence prison in Damascus. thought 1 was getting ready to leave for an.
Q ttlosee ou's. Those are fucking Castro Penthouse: What did you think was going other prison. They took me blindfolded.
scents." And he left. Quintero said, "Don't to happen to you? When I got outside, they stuffed me inside
wccrry. we'll :ake care of him, we'll calm Terpil: I had no idea. The initial accusation a Peugeot, took my blindfold off, took my
hIm down was that I was a spy for the CIA. Then they handcuffs off, and drove me on the road to
Penthouse: When you fled the States to thought I was a spy for the Mossad (Israeli Lebanon. I had my own clothes, which I
avoid trial; what was on your mind? intelligence). Then they went back and had to hold up by a string they gave me.
.Terpil: I was elated to avoid what I as- questioned me about my travels in the And I must have been really reeking. My 1
sumed would be a farce. Middle East,,What they tried to do was lab- hair was matted like dreadlocks. And the
Penthouse: 117by do you say that? ricate a case that I was (stilt) a CIA agent. food was all encrusted in my beard. I felt
Terpil: The trial's outcome was predeter- Penthouse: Which is not true? squeamish about being myself. They took
mined. A judge was brought out of retire- Terpil: Which is not true, but the more I de- me across the Syrian-Lebanese border
ment. Judge Gallagher, known to be a nied it, the more they were convinced that I and stopped the car in the middle of no. personal friend of Morgenthau's. Why was. where. I figured, "This is it. They're going
would they bring a judge out of retirement Penthouse: What was prison like? to knock me off right here. This is the tradi-
for one case? My lawyers told me, "Now, Terpil: Prison conditions were absolutely 1 tional dumping ground." But they said,
we've got a problem. When you show up horrible. It was similar to the comic strip "Get out That way is Chtaura, this way is
Monday, you are not going to be released "The Wizard of Id." The dungeon was ex- Baalbek. Good-bye."
on further bail." So it seemed to me it was actly two meters long by one meter wide. They gave me my watch back and 200
a'one-act play from that point. Nothing in the room. No bed. Nothing. You Lebanese pounds. I got into Chtaura with
Penthouse: So it was a last-minute deci- sleep on the floor. It's underground. No no documentation at all. I asked for a cab
sion to flee? windows. No lights. There's a steel door, to get into Beirut. The taxi driver said, "Let
Terpil: Definitely. Because if there were You're in solitary. me see the money first" I said, "I can't
any possibility that I could have received a Penthouse: Were you beaten? pass any checkpoints, because I don't
fair trial, I would have stayed. If I were go- Terpil: Yes, but that's normal. All prison. have identification," meaning I couldn't
ing to run. I would have run when I knew of ers are beaten. I didn't know what time it pass any Christian checkpoints, because
the indictment coming down from the fed- was, what day it was. I attempted to keep obviously I would have been bagged for
eral authorities. Why pay another $75,000 track of time by counting the meals, sure. And he said, "No, no, we're going
bail when I could have taken that $75,000 Penthouse:. Gourmet meals? around by the airport"
and used it for my travels? T
iTh
Th
rp:
e
e meals could b td "l I got into Bit I i G
eermeearyeru. wentoary's flat and
Penthouse: Having worked for the CIA in survival." In the morning, you got halvah the concierge told me Gary was not there.
the past, were you worried that you'd get and a bowl of water. Then lunch, rice with I said, "Where is he?" He said something
knocked off in prison? some bugs. At supper ... well, they about Spain. I thought he said Gary had
Terpil: Not only worried about it. This was claimed ft was a soup. There was no exer- opened up a Spanish restaurant. So I went
told to an attorney. He met with an FBI cise at all. You come out of the room for over to the girlfriend's houses t said,
agent from- verseY City, who told him
y~
h
ere is Ga ?
a she said. ~~
"They [Terpil and Korkala] won't last eight gatin
gd llhit'~gjt. And
i
l'
~'
?
n fal
I Mo
Wht
Wh Wh
g
cels were fifteen..aoere?" I thought
months: They'll be dead in eight months." approximately he'd been put back by the Syrians. She
P nO ese: So you left. Did you leave in meters away.
would scream all night. said, "He's in Spain." I said. jail? In
cause the Spain?" I couldn't even comprehend how
Terpil: Yeah. I was under surveillance. Penthouse: Did you have. second the hell he got to Spain,
There was a truck parked in front of my thoughts about leaving the States? Penthouse. Then what ha
house, a moving van that supposedly had Terpil: No. A prison is a prison. I just made PPewho
Terpil: Then the hell-inspired wo sought
broken down and had been there for four up my mind: make the best of it. tQ destroy world days. I left as if f were going to the store, no Penthouse: Your partner, Gary Korkala ` ble in in
Beirut with their heir artr a rytille/Broke my bub-
baggage was also imprisoned and interrogated. : itry.
, no luggage. I made an alteration Penthouseuse. The Israelis invaded. The
Tetpil: Yeah, but he
to my appearance, which took about I was released be. shot your bubble awa They
t
cau
h
t
mi
wen
se
y
nutes
e agreed to cooperate b
.. Terpit: They shot my.
bubble away.
Penthouse: Can you tell us what kind of Penthouse. Did he make statements Penthouse. What was it like being in Bei-
al
Terpil: teration? about you? j rut, a recently released fu dive
Thera: No. Terpil: He made statements that I was a ! g ? who
CIA agent couldn't go back to the States? And with
Penthouse: Okay. So where did you go? the Israelis moving toward your apart-
Terpil: I left through. Washington National, Penthouse: How were you released? ment?
went to Mexico City. then to Houston. Terpil: It was Arafat got me out Arafat Terpil: The initial reaction, believe ft or not,
Penthouse: Why? said, "We know he's in jail there. I want was one of relief, of elation. I had antici
Terpit: I had some very important business him out, here in Beirut" No questions. ed it would be only a matter of time before
that I had overlooked. And I was out. No explanation nothing .
: What was
Penthouse: And then where did you o? I Penthouse your condition? g the on squads came and with one of their get me
Te g Terpil: (Laughs) I probably looked like a nation squads and attempted to get me
rpil: To Damascus, then to Beirut. Until again. Very few
some Syrian visitors came, to. m door. I filthier thinner version of Howard Hughes, but a people leave Syrian high
was . kidnapped from the restaurant that point ,was released ohs alive. And those who do have a high
version at that mortality rate on the street..
m
y partner,: Gary Korkala. and I had in April '82, after six months, and at that I did not anticipate the Israelis would
bought. time I had not had a shower since late Dp.
-- -?-?~ y.,...y w uc~.wnt a -- r ?~ ?~~. new, ; come as far as the airport. Norman ih
restaurateur? - didn't cut my hair and my beard was down would come, cause some y ey
Prob.
Terpil: Yes.'As a matter of tact, it was the to about chest length. I was down to 135 bomb for one or two days, and
t eln go
restaurant closest to the U.S. Embassy. Pounds. home again. Then they crossed the Litani
Penthouse: And what happened from the Penthouse: From what? River. moment you were kidnapped? Terpil: About 270. I went from a size 44 go back Nowt home. they weren't going to
Terpil: I was blindfolded, handcuffed, waist to a 32. They came one morning and rageous back So we mustered the cou-
stuffed in a Mercedes. A second person said, "Get ready, you're leaving." I raPalestine Liberation Army,
was stuffed in the Mercedes with me. It
turned out to be Gary. We were driven to ~S 1 N
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could use them. ansu we just settled down
lot the itivasion of West Beirut. anticipat-
:r:g house?to-house fighting.
There were notices on the radio for
Americans to evacuate. American ships
were being brought in. Naturally,, I didn't
care what they brought in. I couldn't go to
tie Americans and say, "Hey, here I am.
'm a citizen. I plan on leaving." And there
was a big problem getting over to East
Beirut. Decause "the Phalangists weren't
stupid. They knew I worked with the PLO.
I was, for all intents and purposes, PLO.
not American. I couldn't leave. Ships go-
ing to Cyprus were being intercepted by
Israeli patrol boats: I had no choice but to
stay and fight.
Penthouse: Were you armed?
Terpil: * Everybody's armed in
That's like wearing clothes.
Penthouse: What were you armed with?
Terpil: Grenades, AKs, the standard issue.
Penthouse: What happened?
Terpil: I had a very beautiful flat. Unfortu-
nately, it looked into both East and West
Beirut-it had huge balconies. So we
were caught in a cross fire. If you wanted
to get coffee in the kitchen, you had to
make sure the kitchen was not under
siege. We kept little Coleman stoves in the
r'aliway, in the living room. You actually
had to establish a little kitchen in every
room, because you didn't know which
room might be under fire.
Penthouse: It came time to leave. What
happened? 1. 1
Terpil: The Israelis broke through on Mu-,
seum Road. And when they broke]
through, I knew we weren't going to stop
them. They were approximately fifty me-i.
tors down the road. Then, on the other i
side, they occupied ever)ithing to the east. ~
They had us encircled.
Penthouse: How did you leave?
Terpil: PLO. I had the fighter's uniform:
kaffiyeh, AK-and sunglasses, of course.
Penthouse: You had your Rolex?
Terpil: I had my uniform buttoned down
over the Rolex. Not too many PLOs.wear-;
ng Rolexes that day. We infiltrated the
ines to reach the port area. There must
have been 1,000 to 1,200 people in uni-'
'orm in the port, all trying to get out of the
,)lace. I left on a PLO ship.
enthouse: Where did you go?
:Terpil: I went to the camps in Tunis. From
i unis many of the PLO people infiltrated
Sack to Beirut. via Syria and Jordan.
:,enthouse: They went right back?
'erpil: When I was at the port, I witnessed
?.nese people kissing their wives and chit.
Iren good-bye, and the children and
'ives returned to Sabrah and Shatitla. A
.-week later, these same people were dead,
massacred. Now you have these men
rearing newspaper reports, assuming the
rorst. In most cases it was a justifiable as-
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Penthouse: So that's what started the PLO
split?
Terpil: That's what started it. These people
didn't have families anymore. They de-
manded retaliation. At the same time, you
had Arafat saying, "We're going to try to
settle this diplomatically. We scored a vic-
tory in Beirut."
"What victory?" these people wanted
to know. "We walked out with our tails be-
tween our legs. That's a victory? And our
families were slaughtered right after
that?"
So now you have,these people with no
families. What have they fought for?
They've fought for nothing. They have no
house, they have no personal belongings,
they have no families, they have nothing.
These people are like living shells. They're
not going to listen to Arafat. They listened
to Arafat once. Why listen to him? Why not
listen to George Habash? Why not listen to
Abu Nidal? Retaliate. Retaliate. An eye for
an eye, a tooth for a tooth. They're death
squads. They volunteer, as suicide i
squads. They have nothing else to live for. I
So ... they went down into Bekaa.
The massacre loll was higher than the
press said. They bulldozed people under
houses. There were mass graves. No one
will ever know the death toll. But I would
say it probably runs between two and
.three thousand.
Penthouse: Is it your view, then, that the
PLO has only one road to follow: terror-
ism?
Terpil: Yes. And not only in the Middle
East. The United States is not immune. It
hasn't happened yet. But there are a great
many Palestinians in New York, Miami,
California-Palestinian students who con-
sider themselves warriors at this point.
And there could be occurrences.
Penthouse: Such as?
Terpil: Such as the Olympics.
Penthouse: Let's talk a bit about your life
since then. Do you still carry a weapon?
Terpil: Yes. A Makarov.
Penthouse: Why?
Terpil: I wish it were unnecessary. I'm not
a cowboy. But I'm not going back to nego-
tiate a fifty-three-year sentence.
Penthouse: You'd get out at ninety-six.
Terpil: They probably wouldn't have Ii-
?cense plates by then.
Penthouse: Before you became an under-
cover tourist, you were associated with a
number of very dictatorial regimes. The
one in Uganda, for example. Have your
politics changed?
Terpil: Sure.
Penthouse: What's changed yuu?
Terpil: Being forced to live within the com-
munity of these people. Hearing what they
feel imperialism is, capitalism is. And. of
.mption. So you had these people say-.
- g, "I'm not going 10 stay in Tunis.. For
het?" They defied Arafat. They went
ck, as many as two and three hundred
that had "California Ordnance Depot" on
it. I really felt a little bit miffed about that-
my tax dollar was trying to destroy me!
Penthouse: But it's not your tax dollar.
You have an outstanding tax bill of about 4
million dollars.
T rpil: Four and a half, or something.
Penthouse: You ought to be booted.
Terpil: Ha. ha, ha, ha.
Penthouse: You've traveled in Central
America recently. How do you feel about
what's going on there?
Terpil: I never have been against covert
action, but in Nicaragua you had So-
moza-an absolute dictator. People ac-
cuse me of being friendly with Idi Amin,
but Somoza was worse than Idi Amip.
However, he graduated West Point; he's a
friend of the United States. Finally, a radi- !
cal group said, "Hey, it's about time the:
people had a cut of the pie." They're not
Communists, they're just looking for a
piece of the action for the people. Ironical
ly, they take over the country through co-
vert action.
So Somoza is gone. He runs off with his
millions or billions, and he goes to Miami.
Now, suddenly, he becomes an embar-
rassment to the United States. My God.
we can't have Somoza in the country. Ev-
erything Carter said about human rights.
Somoza did the opposite. So, we've got to
get rid of Somoza. Send him to South
America someplace, get rid of the guy.
Somoza gets killed. Very. very mysterious
circumstances-how he was killed. Peo-
ple knew he had an armored car, so they
use the appropriate weapon, a 3.5 rocket
launcher, which is manufactured only in
the United States. The people had Ameri-
can equipment-I'm talking. about radio
equipment. They were dressed, ironically,
in red wigs, similar to Howard Hunt. May-
be they came from the same source. I
[Howard Hunt wore a CIA-supplied wig for
a clandestine interview with Dita Beard, an
ITT lobbyist.)
- But to get back to what the United
States is doing.. The Sandinistas have ac-
tually made overtures toward the United
States. They are not so pro-Soviet, or so
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 orce?
- ---vu people assigned " "" "'a- wilco to provide what is
tneirs away to other countries that were, by President Reagan are supposedly as. called an Order of Battle [OB) plan. It's a '
let's say, more friendly. But the use was signed to Miami. Where are these people? complete capability [breakdown) of troop
the same. The use was for remote detona- They went right through Miami into Central strength, morale, physical capabiiwes--
tion, for clandestine explosives, for assas- America. Central America now had the weak spots and strong spots. Wilson
sinations. Now how do you differentiate biggest DEA force in the world. What is the knew, and I knew, that it was impossible to
which is bad and which is good? DEA doing? CIA activities. How do you dif-. obtain this except through the Defense In-
Beirut was a testing ground for live ex- ferentiate between CIA and DEA? telligegce Agency or the CIA. Wilson went
periments with the latest developments of Penthouse: Okay, while we're talking a high-level CiA officer to see if he could
U.S. weapons. The vacuum bomb, for in. about Miami, let's talk a bit about the con- assemble an 08, knowing full well where
stance. A vacuum bomb is dropped from troversies that have surrounded the Miami the CIA officer would go to obtain the infor
an aircraft and explodes above the tar t CIA t
e
t
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t! a hu,-~iianr ano Cubans are the people Penthouse: For their use? what do you do with It? You Pay It to Alice
who have offered them aid. What is the Terpil: Of course for their use. The toxin Springs, Australia, the site of a huge miii-
United States going to do? It will continue was to be from nicotine, an extremely fast. tary-intelligence installation. Billions of
rs covert action against them, acting poison. Nicotine sulphate. If you dollars-not millions-billions of dollars.
Penthouse: You've dealt with, among oth. just got scratched on the arm or anywhere More money than you knew what the hell
ers. Amin and Oaddati; neither of whom is you'd be dead in a matter of seconds. 10 do with.
or was controllable by the United States. Penthouse: What would you have sold Penthouse: So you're saying that the
Terpil: T hat's why they're despised. that gun for? agency would provide gold, which would
Penthouse: At the same time, you make Terpil: Robghly $245. The silencer would then be flown into the Golden Triangle.
Me
e point that Sornoza was, in many ways, have been, possibly, an additional 5110. Terpil: To pay for the drugs.
bad as or worse than Amin. The same This was in quantity. Penthouse: And these would then be sold
can be said of other dictators the United Penthouse: We understand you know in any of three cities, and the move
States supports. If you had dealt only with something about a number of DEA agents into different banks? Y put
controllable dictators, would you be in the who were sent down to Florida, and then Terpil: Then farmed back into the agency
"public-relations crisis" that you are in? to Central America. accounts.
Terpil: I could have sold the identical - Terpil: They're not DEA agents; they're Penthouse: into the operations,in?Alice
equipment that I have been alleged to CIA agents. Springs?
have sold, to General Pinochet of Chile, or Penthouse:txptain. {{' Terpil: Right. A lot of money.
to Somoza, and I would not be in any Terpil: Okay. A number of CIA agents Penthouse: Okay, let's move on to Libya.
problem whatsoever, were let go in the early 1970s, in mid-ca. You stated at one time that the first Libyan
Penthouse: What kind of equipment? Year. They had. Possibly, fourteen or fit- attempt to invade Chad took place on the
Terpil: We're talking about silent weap- Teen years' service and all of a sudden basis of information that came, indirectly,
ons; we're talking specifically about as they find pink slips on their desks. Where through the agency. Can you elaborate?
sassinations or covert activities. The do these people go? They show up in Terpil: Wilson and I were in Libya. No big
weapons that I sold-my sources for them DEA. Their operational methods haven't secret. Oaddafi entertained thoughts
were the exact same sources the CIA changed, except they now have greater about invading Chad. However, Oaddafi
uses. Do you see the CIA under indict- flexibility. They're not encumbered by ri. had no knowledge of two key factors.
ment? The same laboratory that devel- diculous rules and regulations. If they ( One, would France come to the aid of i
oiled remote-detonation equipment for want to blow a guy's head off, that's the t Chad? Two, what were the capabilities of !
the CIA, I used. The only difference was I fastest way to gel rid of him Chad's army and air f
sold mine to n
g
. s a
ron. maton. The officer was paid $50,000 for
The air rush implodes the building, taus- Terpil: The significance of Miami is the the OB. Now, this man, who is not an ex-'
ing no damage to the surrounding area drug syndicate. Miami's the base. The Pert in
of with these affairs at all, had to rely on.the
but killing everything within that building. ' people that I hired from the agency to ter- nhelp si , o one who works Waldo D a dal.
They used this flimsy excuse in Beirut: minate other people are there. [Terpil, giv- stein. e r whom was Waldo Dubber-.
they "thought" Yassir Arafat was in.the ing names, then alleged that two former, hunts accident in the laundry unfortunately, roe had a
building. That's total bullshit. Israeli intelli- l highly placed CIA officers were responsi- hunting accident in the laundry room of his
Bence has been known to be more exact ble for the following scheme.) The .girlfriend's apartment.
than that. They killed 283 people, mainly volved in this big drug scandl, whic
y h was n dead 1n th b alemDubbe was
to
to prove that the vacuum bomb was a tea- I whitewashed. Where do the drugs come found dead in the basement area ofa o1an Ar-
weapon. from? Laos. Where did the money come } lington apartment he shared with his girl-he had Penthouse: You were charged with hav. from? Nugan Hand Bank. [Amid allega- L intend. Police said
a 12-been shot once
ing trained people. Libyans and others, in lions of corruption and international drug the head with a 1h sod shotgun.
ub er.
assassination techniques. You've gone to traffic, the Nugan Hand Bank, a Far East stein, was found near his body. Dyst for
U.S. military personnel or CIA personnel. bank with branches worldwide whose offi. stein, a former-CIA
Defense er Intelligence officer and Agency from
Why is it they have this kind of expertise? cars included many ranking members of the tof19 had been indicted days
Terpil: Because they were trained by the the U.S. intelligence establishment, went 1o y a2, had l grand two days
U.S. government in this expertise. bankrupt in 1981.) The idea was- In the charged earlier by t a federal grand jury. He was
Penthouse: Why? Golden Triangle [of Laos) you had to buy unauthorized with
disclosure sccounts of conspiracy,
Terpil: t's being used. As a matter of fact, warlords. How do you do that? You gave
ssifd in-
Nhile under indictment in New York I had them more money [than the going market formation, , and briber
iberhe grand jury at-
in my possession two U.S.-government rate) for their product. Now what do you teged that Dubbersiein turned over-both
arms licenses. I was picking up from New. do? You sell the opium through Singa- y
to Ed Wilson and direct) to Libyan intetli-
irk Airport a special pistol made by a pore, Hong Kong, and Delhi. You reinvest g
:rk A industrial group, an assassination the profits in your own opera. The es ofe Middle dlee summaries and ana-
.~eapon for the U.S. Special Forces. We money is brought to Kabul and td posited Lisbya Libya. East affairs beneficial asked by the U.S.Special Forces ' in the First National City Bank of Afghani. ceived . The indictment alleged that he re
more than 532,000 from Wilson in
Droup, Delta Division, of Fort Bragg, North star. The other bank was Nugan Hand_ return.]
arolma, to come up with a suitable for. that's where the transfers went. Now Penthouse: , So
z Iina factured pistol with silencer n Wilid went to this high-
you've got an accelerated 'fund. Now level CIA officer, and he wA
`-j poison bullets. That was n 11-4-A ..,,..?.._ _ .. ~ nt to Dubber-
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 ---- --- -_ j_. 1... .1.1
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1'011111011,b t:1IUI DubberDIrr111 pat It?
I erpll: Yea. Dubberstein actually made a
trip into Libya with this information.
Penthouse: And for this the high-level CIA
officer was paid $50,000?
Terpit: Yes.
Penthouse: What would Wilson have
charged for such services?
Terpil: Three hundred tt ousand to
$400,000.
Penthouse: Let's talk a bit about Ed Wil-
son. Did he know the Korean Tong Sun
Park?
Terpil: Yes. When Park disappeared into
London, Wilson had all the unlisted phone
numbers and was in direct communica-
tion with him on many, many occasions.
Penthouse: Park, of course, was a KCIA
agent?
Terpil: Of course.
Penthouse: And Wilson was a CIA agent.
Terpil: Yes.
Penthouse: It was alleged, among other
things, that Park was involved in possible
bribery of certain congressmen. Was the
agency aware of this?
Terpil: I don't see how they could not be
aware of it. Wilson was one of the original
members of the Georgetown Club. He
was also a charter member of the Univer-
sity Club. None of this was arranged for-
him through his own introductions.
Penthouse: Then through whom?
Terpil: The Company-the agency. The
agency gave Wilson this profile of having
all this money and everything else.
Penthouse: It's been alleged by jack An-
derson that the Justice Department was
investigating statements that payments
dropping the money was Kevin Mulcahy.
He worked for both Wilson and me. He
stated that the drop was made to another
courier, a prominent Washington socialite,
in front of the passport office on 14th and
K. Mulcahy would give him an -attache
case. And the payments were in incre-
ments of $4,000.
Penthouse: Not a pretty picture.
Terpil: Right. American politics is so fuck-
Ing corrupt Itb unbelievable. When they
shake their finger at somebody else, they
re:.iy snould took in their own backyard.
Penthouse: You said you wanted to talk
about a Turkish organization known as the
Gray Wolves. Let's talk about it.
Terpit: The Gray Wolves are an ultra-right
Turkish political group that felt Turkey
might go to the left. They took it upon
themselves to make sure Turkey stayed to
the right-by means of extreme mea-
sures. It's a paramilitary group.
Penthouse: Who financed it?
Terpil: The chief financier was a Muslim
who held Nazi political ideas. He married
an extremely wealthy woman in Turkey.
He is today probably one of Turkey's
wealthiest people. He was elected to the
Turkish parliament and became a deputy
of the Turkish Justice party. Then he took it
upon himself to become the protector of
the Right in Turkey. He came to the United
States on several occasions. He went to
the CIA for funding. He went to the shah of
Iran, too. Apparently he met with limited
success, and he basically financed his
own operation.
Penthouse: Who trained his private
group?
Terpil: He got what he felt was the best. He
had North Koreans training the group in.'
karate. For clandestine eavesdropping,
he had some West Germans. For possible
assassinations, and in what we call "bang
and boom," an active-duty CIA officer was
hired on a personal basis, while on his an-
nual leave, to train the Gray Wolves. He,:.
was a contact of Ed Wilson's. And he actu-
ally spent two weeks in Istanbul.
were made secretly to Senator Strom I Penthouse: Is it true that one of the people
Thurmond by a middleman acting for Ed who underwent training with the Gray
Wilson. Could you tell us about that? I Wolves was Mehmet Ali Agca, who is ac-
Terpil: The courier who testified about cused of attempting to assassinate the
pope?
Terpil: Yes.
Penthouse: Don't you think it's ironic that
while it has been alleged that the assassin
was working in behalf of the Eastern bloc,
his training came. indirectly, through the
agency. -
Terpil: Yes, but you cannot blame the
agency for specifleally training him to go
after the pope.
Penthouse: You're on the run; you're car-
rying a gun. you rely on phony names.
false passports. You travel out of a suit-
case and live in hotels, admittedly ex-
tremely nice hotels. But you can't really
hold on to anything. Does that bother you?
Terpit: It would bother me a lot more it I
were restricted to a five-by-seven cell.
Penthouse: Ed Wilson, it is rumored,
passed ato:^g a message that you had
placed a contract on Assistant U.S. Prose-
cutor Larry Barcella. Is that true?
Terpil: Total bullshit. Barcella has his job. I
have no personal animosity. tf Barcella
gels his jollies by throwing someone in the
stammer for fifty years, that's good for
Barcella. I personally don't want to be a
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