2 Japanese carrying $134 bil worth of U.S. bonds detained in Italy

[Peter Presland]

Nothing in the US or UK MSM that I can find but this from 'Japan Today':

ROME —
Two Japanese nationals were detained by Italian financial police last week after trying to enter Switzerland with $134 billion worth of undeclared U.S. bonds, mostly Treasury bonds, an Italian daily said Wednesday. The Japanese consulate general in Milan confirmed that the detention had taken place and said it was trying to confirm with Italian authorities whether the two were indeed Japanese nationals and their identities.

According to the report in il Giornale, two unidentified Japanese in their 50s concealed the bonds, including 249 U.S. Treasury bonds each worth $500 million, in a suitcase with a false bottom that was searched by the Italian authorities June 3 when they were in Chiasso, at the border with Switzerland, about 50 kilometers north of Milan. The daily did not say on what charges they have been detained, but the two may have been detained on suspicion of attempting to take a large amount of securities out of Italy without declaring it because the paper said they had not declared the bonds.

And this from Asia News.It

US government securities seized from Japanese nationals, not clear whether real or fake
Bonds worth US$ 134.5 billion are seized. This is the largest financial smuggling case in history. But are they real? Concern over ‘funny money’ or counterfeit securities is spreading in Asia. The international press is silent.

Milan (AsiaNews) – Italy’s financial police (Guardia italiana di Finanza) has seized US bonds worth US 134.5 billion from two Japanese nationals at Chiasso (40 km from Milan) on the border between Italy and Switzerland. They include 249 US Federal Reserve bonds worth US$ 500 million each, plus ten Kennedy bonds and other US government securities worth a billion dollar each. Italian authorities have not yet determined whether they are real or fake, but if they are real the attempt to take them into Switzerland would be the largest financial smuggling operation in history; if they are fake, the matter would be even more mind-boggling because the quality of the counterfeit work is such that the fake bonds are undistinguishable from the real ones.
What caught the policemen’s attention were the billion dollar securities. Such a large denomination is not available in regular financial and banking markets. Only states handle such amounts of money.
The question now is who could or would counterfeit or smuggle these non-negotiable bonds.
In order to stop money laundering Italian law sets a ceiling of 10,000 euros per person for importing or exporting money without declaring it. The penalty for violating the law is 40 per cent of the money seized.
If the certificates were real, for Italy it would be like hitting the jackpot. The fine alone would amount to US$ 38 billion, five times the estimated cost of rebuilding quake-devastated Abruzzi region. It would help Italy’s eliminate its public deficit.
If the certificates are fakes the two Japanese nationals could get a very lengthy jail sentence for fraud.
As soon as the seizure was made the US Embassy in Rome was informed. Italian and US secret services were called in to assist the Italian financial police.
Some important international financial newspapers had already reported on the existence of ‘funny money’ circulating on parallel, i.e. unofficial, financial markets.
For AsiaNews a few points need considering:
1. When it comes to Italy the world press has tended to focus on Italian Prime Minister Berlusconi’s personal problems rather than on stories like the bonds smuggling affair which has been front page on Italian newspapers.
2. The fear of counterfeit bonds and securities has spread across Asia with the result that real securities are also considered with suspicion.
3. During the Second World War several countries at war printed and put in circulation perfectly counterfeit enemy money. It is also historically established that some central banks, like the Bank of Italy 65 years ago, issued the same securities twice (identical registered number and code). This way they could print more money with legal tender than they officially declared. The main difference though is that 65 years ago the world was involved in a bloody war, which is not the case today.

And this Googlish from the official Italian police press release:

Milan, 4 Jun. (US)

Duecentoquarantanove nominal bond of the US Federal Reserve of the value of 500 mln USD each more ' 10 bond Kennedy from 1 mld dollars each, hidden in the Fund a suitcase, a total of well 134 mld dollars, amounting to more than 96 mld euro dual.

We have seized the international railway station of Chiasso, on the border between Switzerland and Italy, officials of the territorial operational section of Chiasso, in collaboration with the Finance of the Group of Ponte Chiasso, Guard soldiers in the controls to the contrast of illicit traffic in capital.

Values were owned by two Japanese cinquantenni dropped the railway station of Chiasso from a train coming from Italy which, at the time of the customs control claimed not to have nothing to declare.

A thorough check of luggage has allowed to find titles use hidden at the bottom of a suitcase, one compartment closed and separate containing personal clothes.

Addition to titles, the two Japanese transporting a large bank records in original.

For the bond and documentation that accompanied them, too ' it subject to seizure, are ongoing investigations aimed to establish authenticity ' and origin. If titles are genuine, under the existing legislation, the administrative penalty applicable to holders could reach the 38 billion euros, 40 % of the sum exceeds the permitted 10mila euro relief.

Note the press release date - 4th June. Seems to be a press blackout on it right now. Worth watching methinks