blank.gif - 0.0 KTHE ORAL DEPOSITION OF RICHARD J. BRENNEKE, a witness produced at the request of the Attorney Generalís Office, taken in the above-styled and numbered cause on the 21st day of June, 1991, before Jeff Bennett, C. C. R., Certificate #19, of BUSHMAN COURT REPORTING, INC., Notary Public in and for White County, Arkansas at the Office of the Attorney General, 323 Center Street, Little Rock, Arkansas at 10:10 a.m.


* * * * * * * * * *

RICHARD J. BRENNEKE

the witness hereinbefore named, having been previously cautioned and sworn, or affirmed, to tell the truth, the whole truth, and nothing but the truth testified as follows:

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1blank.gif - 0.0 K MR. ALEXANDER: My name is William Alexander,

2blank.gif - 0.0 K Jr., and Iím an attorney and a member of the United States

3blank.gif - 0.0 K Congress. Iím a member of the Bar of the State of Arkansas as

4blank.gif - 0.0 K well as the District of Columbia and other states. And Iím

5blank.gif - 0.0 K taking this deposition today as a member of the United States

6blank.gif - 0.0 K Congress in my investigative authority under the Constitution,

7blank.gif - 0.0 K and as a member of the Appropriations Committee having

8blank.gif - 0.0 K jurisdiction over all agencies of the federal government,

9blank.gif - 0.0 K specifically those agencies for the Departments of Justice, State

10blank.gif - 0.0 K Commerce and the Federal Judiciary. For some time I have been

11blank.gif - 0.0 K involved in investigating the subject of inquiry today with full

12blank.gif - 0.0 K authority as a member of the United States Congress. In

13blank.gif - 0.0 K addition, Iím acting as a Special Assistant to the Attorney

14blank.gif - 0.0 K General of the State of Arkansas who is represented here today.

15blank.gif - 0.0 K And, Chad, would you state who are you, and what youíre doing

16blank.gif - 0.0 K here?

17blank.gif - 0.0 K MR. FARRIS: My name is Chad Farris. Iím the

18blank.gif - 0.0 K Chief Deputy Attorney General for the State of Arkansas. And

19blank.gif - 0.0 K Representative Alexander is right, that he has been so

20blank.gif - 0.0 K designated, and I am attending as a representative of the

21blank.gif - 0.0 K Attorney Generalís Office and will participate in this

22blank.gif - 0.0 K investigation.

23blank.gif - 0.0 K MR. ALEXANDER: Iíll state further for the

24blank.gif - 0.0 K record, that the nature of this inquiry is confidential. And

25blank.gif - 0.0 K that it is -- the evidence is intended to be used to produce for

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1blank.gif - 0.0 K the benefit of the Special Prosecutor in the Iran-Contra case

2blank.gif - 0.0 K now pending in Washington and for other purposes. And Iíd now

3blank.gif - 0.0 K like to ask the reporter if he would swear the witness.

4blank.gif - 0.0 K (The witness was sworn.)

5blank.gif - 0.0 K EXAMINATION

6blank.gif - 0.0 K BY MR. ALEXANDER:

7blank.gif - 0.0 K Q. Would you state your name, age and residence?

8blank.gif - 0.0 K A. Okay, The name is Richard J. Brenneke, B-R-E-N-N-E-K-E.

9blank.gif - 0.0 K My home address is XXX XXXXXXXXX XXX Street in XXXXXX, and

10blank.gif - 0.0 K thatís X-X-X-X-X-X-X-X, XXXXX, XXXXX.

11blank.gif - 0.0 K Q. Mr. Brenneke, would you state briefly your educational

12blank.gif - 0.0 K background prior to the time when you began full-time work;

13blank.gif - 0.0 K whatís your education?

14blank.gif - 0.0 K A. I have -- I graduated from Jesuit High School in Portland

15blank.gif - 0.0 K Oregon. I went to Seattle University, and graduated from

16blank.gif - 0.0 K Seattle University in 19?4. In 19?6, I got my masterís degree

17blank.gif - 0.0 K at the University of Toronto, and subsequent to that became a

18blank.gif - 0.0 K teacher at St. Johnís University in New York.

19blank.gif - 0.0 K Q. And when were you a teacher in New York?

20blank.gif - 0.0 K A. I was in New York from Ď66 -- I taught the years Ď66

21blank.gif - 0.0 K through Ď68.

22blank.gif - 0.0 K Q. And following 1968, would you describe your work history

23blank.gif - 0.0 K and the jobs that you had?

24blank.gif - 0.0 K A. Sure. I went to work for an offshore mutual fund company

25blank.gif - 0.0 K in 19 -- in the fall of 1968, and became a -- their resident

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1blank.gif - 0.0 K specialist in handling financial transfers and moving the money

2blank.gif - 0.0 K from one point to another. The funds were sold worldwide, not

3blank.gif - 0.0 K in the United States. I stayed with them for two years. In --

4blank.gif - 0.0 K Q. What was the name of the company?

5blank.gif - 0.0 K A. The company was United Growth Fund, United Investment Fund.

6blank.gif - 0.0 K Q. And how long were you with them?

7blank.gif - 0.0 K A. I was with them approximately two years.

8blank.gif - 0.0 K Q. And what did you do following the association with the

9blank.gif - 0.0 K Growth Fund?

10blank.gif - 0.0 K A. I did two things; first of all, I realized that what was

11blank.gif - 0.0 K being done was not in the best interest of the investors in the

12blank.gif - 0.0 K mutual fund, and some of the smaller people who had money in it,

13blank.gif - 0.0 K and I gave a full disclosure. I requested a full disclosure

14blank.gif - 0.0 K conference with the SEC in Seattle, Washington. That was

15blank.gif - 0.0 K granted, and that was the first briefing I ever gave to

16blank.gif - 0.0 K government officials on how money is handled offshore.

17blank.gif - 0.0 K Q. Okay. Was the money being handled for the government?

18blank.gif - 0.0 K A. Some of that money was government money yes, sir.

19blank.gif - 0.0 K Q. And what agency of the government was it being handled for?

20blank.gif - 0.0 K A. Central Intelligence Agency.

21blank.gif - 0.0 K Q. And so you had contact with the Central Intelligence Agency

22blank.gif - 0.0 K at --

23blank.gif - 0.0 K A. In 1968, late 1968, I was contracted by the Central

24blank.gif - 0.0 K Intelligence Agency to furnish them with information relating to

25blank.gif - 0.0 K the financial movements, the money movement that we dealt with,

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1blank.gif - 0.0 K and who the investors in our mutual fund were.

2blank.gif - 0.0 K Q. Did that later lead to a more -- did that later lead to a

3blank.gif - 0.0 K relationship of employment with the Central Intelligence Agency?

4blank.gif - 0.0 K A. No, sir. I was never an employee of theirs. I was always

5blank.gif - 0.0 K a sole contractor.

6blank.gif - 0.0 K Q. So you were an independent contractor with the Central

7blank.gif - 0.0 K Intelligence Agency?

8blank.gif - 0.0 K A. That's correct.

9blank.gif - 0.0 K Q. Beginning when and through what years?

10blank.gif - 0.0 K A. 1968 through about 1986, somewhere in 1985, '86 is when I

11blank.gif - 0.0 K called it off.

12blank.gif - 0.0 K Q. So what services did you perform for the Central

13blank.gif - 0.0 K Intelligence Agency?

14blank.gif - 0.0 K A. Specialized in two activities; I handled money for them, I

15blank.gif - 0.0 K handled East Bloc weapons purchases primarily made in Yugoslavia

16blank.gif - 0.0 K and Czechoslovakia.

17blank.gif - 0.0 K Q. And what compensation did you receive for your service to

18blank.gif - 0.0 K the Central Intelligence Agency?

19blank.gif - 0.0 K A. Compensation varied by the job, it could go anywhere from

20blank.gif - 0.0 K 100 bucks for a piece of paper to several thousand dollars for a

21blank.gif - 0.0 K a variety of activities.

22blank.gif - 0.0 K Q. In general, what would you say on the average would be your

23blank.gif - 0.0 K annual income from the CIA for the performance of these

24blank.gif - 0.0 K services.?

25blank.gif - 0.0 K A. In the early days, probably $10,000. It grew as time went

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1blank.gif - 0.0 K by.

2blank.gif - 0.0 K Q. Up to how much?

3blank.gif - 0.0 K A. I canít tell you, because I donít know.

4blank.gif - 0.0 K Q. Well, you have income tax returns that you could provide if

5blank.gif - 0.0 K we ask for them?

6blank.gif - 0.0 K A. I have filed income tax returns in the past. And I have to

7blank.gif - 0.0 K -- Iím sorry if I have to digress for a minute, but I do. The

8blank.gif - 0.0 K Internal Revenue Service contacted me recently and said they

9blank.gif - 0.0 K canít find seven years of my tax returns, which I find to be

10blank.gif - 0.0 K very, very strange. And we -- I am in the process of

11blank.gif - 0.0 K reconstructing those returns. The reason I canít produce copies

12blank.gif - 0.0 K of them is that my home has been burglarized twice, both matters

13blank.gif - 0.0 K of police record, both time reports were made to the cops.

14blank.gif - 0.0 K Q. Well, we wonít dwell on that. I just wanted to establish

15blank.gif - 0.0 K the fact that you were --

16blank.gif - 0.0 K A. Okay. Itís gone to 20 or $30,000 easily in a six month

17blank.gif - 0.0 K period.

18blank.gif - 0.0 K Q. And you said you perform other services, other than mutual

19blank.gif - 0.0 K fund consultant for the CIA, what were those services?

20blank.gif - 0.0 K A. I was a pilot for the CIA at several times.

21blank.gif - 0.0 K Q. Where did you receive your pilot training?

22blank.gif - 0.0 K A. Initially in Portland, Oregon and British Columbia.

23blank.gif - 0.0 K Q. And you were a pilot for the CIA?

24blank.gif - 0.0 K A. That's correct.

25blank.gif - 0.0 K Q. During what period?

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