segunda-feira, 26 de abril de 2010
Porque razão o MP, o DCCIAP, os Tribunais Portugueses , tantos Políticos e até Jornalistas se recusaram a estudar esta Mega-Fraude?
Este longo documento, é bem capaz de mostrar como a fraude PONZI-POCALYKO destruiu empresas e valores em Portugal e noutros países, para benefício de uns quantos apenas.
Porque razão o MP, o DCCIAP, os Tribunais Portugueses , tantos Políticos e até Jornalistas se recusaram a estudar esta Mega-Fraude?
We all live under the same
sky, but we don't all have the
Vivemos todos sobo o mesmo ceu, mas
nem todos temos o mesmo horizonte.
THE ERDEVEL EUROPA MONEY MAKING TRAP EUROPEAN AND SAUDI OFFSETS
0. Letter to Erdevel Partners
1. Offset Fulfiller not Venture Capitalist
2. Miracles in Accounting and pre-designed debris
3. The Erdevel European Companies etc.
4. The Offset “Matrix:” Tons of European and Saudi Money
Ferrara, January, 25, 2008
Dear Erdevel Partners,
I should have started with “Dear Erdevel Victims,” though it is strange enough just referring to Erdevel
Europa Friends. We have been the chosen victims of an international scheme organized by Michael
Pocalyko, and a few of his associates.
Michael Pocalyko is neither a venture capitalist nor an international banker, but a first class “offset
fulfiller.” I know that many of us since our first meeting in Vienna in 2003, have made several
hypotheses: none of them were correct, though each one of us sensed that something was not right. Too
much money, too few returns – none in some cases.
Mike has an incredibly brilliant mind and is a good actor. Great enlightenment came to me when the
supporting character, John Greathouse, at the Erdevel Europa meeting in Riyadh at the end of 2005 (all
the four Erdevel European companies were present) referred jokingly to Mike as a “great stand-up
comedian.” After Mike's two-hour long monologue about his and the great Erdevel successes the
audience was exhausted and totally puzzled because neither the Europeans nor the Saudis shared
Mike's enthusiastic attitude. We made no money, Zarah could not understood why he received so much
money for doing nothing. He just wasted resources and time. John's boutade “the emperor is naked”
was a minor mistake, but similarly to a hole in a dam, a hole that collapsed unavoidably the entire
structure in my “slow” European mind. You see, Erdevel Europa is incredibly successful, but in
spending Portuguese, German, Belgian, Italian, and most of all, Saudi money. Or do you still believe it
is Mike's money?
Pocalykos's companies, Erdevel Europa, Monticello Capital, Advanced Environmental Resources, and
the incredibly expensive and useless Erdevel Saudi Branch are the complex stage of a comedy, where
Pocalyko is not only the director but also the main character. What is the reality beyond the
appearances? What is the Matrix? It is a marvelous and sophisticated offset accounting, managed by
Barbara (and Mike) Pocalyko and legally supervised by De Silva. We are speaking of easy profits of
least XXX million Euro plus benefits, with less than 10 million. But this is only the beginning. Read
the narrative enclosed and you will know why Pocalyko feels like King Midas, transforming European
and Saudi debris into gold.
Erdevel Europa is liable for three European bankruptcies. Actually, Mike was even able to profit from
their failures. We all know that Mike can close the entire stage in a few weeks. Suddenly closing will
imply a lot a damages for him, but he could also get away with limited money liability. However, he
cannot close down his huge client, i. e., the listed company which has greatly benefited of Mike's
scheme. In other words, the company that Mike fulfills the offset for.
As Luc Vriens, understood superficially but clearly: if Antonio Ferreira wins in Portugal, we will take
advantage of that and recover something. But even apart from that, if we cooperate we will recover our
money and in addition they will pay damages to us and to our companies.
Some of you have been caught inside Erdevel Europa Sarl cage as
“partners” or employees, some others know Erdevel Europa or
Monticello Capital for different reasons, and for the latter it may be
interesting to read the Appendix containing a detailed narrative of the
past 5 years Erdevel Europa from 2003.
It is about time to tell you what we are as Erdevel Europa and in what
we have been involved, without our knowledge, with Monticello
Capital. I have painfully discovered it and I can now describe the
mechanism in details with a negligible margin of error. Monticello
Capital is technically speaking an offset fulfiller; a sophisticate one. In
Monticello there are no venture capitalists and it is not an investment
bank (a "boutique investment bank," as Monticello Capital states in its
Pocalyko's scheme, I must admit, is brilliant, and I am sure you will
share my assessment, in spite of anger and disappointment for his
responsibility in our losses. I will give the basic details his scheme
later, but without a basic change of paradigms you would not
understand. Once you changed your perspective, you will see clearly
what Pocalyko has been doing in the last 5 years with our money, time
and resources. Now: a sketch of the horizon of the money making
scheme, and then some essential details: Monticello, Erdevel Europa,
the Erdevel Companies, and Saudi Arabia Erdevel Europa branch.
First, an important premise. Monticello Capital has nothing to do with
"intelligence" services or something like that. We were all wrong in
assessing the situation after the first Erdevel Europa meeting in
Vienna at the end of 2003. It is all about making a lot of money out of
the economic opportunities of the huge defense industry sales. Let
me focus on "OFFSET fulfiller" and, to do that, I need to start with an
elementary explanation on defense industry OFFSETS.
A defense company makes a sale (usually large sale) to a
foreign country of, say for instance, missiles, combat ships,
Light Armored Vehicles, etc. For instance, the recent visit of
US president to Saudi Arabia was accompanied with a 20
billion USD defense weaponry sale to Saudi Arabia (that will
imply about 8 billion in offset credits to Saudis in the near
future). Almost all weapon sales (huge and remunerative) to
foreign countries generate an economic obligation, also known
as offset. Foreign countries require balancing or offsetting
acts by the profiting company. The amount of the obligation
is generally a percentage of the sale. In European countries
the rate is rarely less than 70% of the sale, in Saudi Arabia it is
lower, around 35-40%. Let me make a more specific example.
Saudis buy General Dynamics LHVs (Light Armored Vehicles),
for 1 billion USD. This sale generates a counter obligation by
General Dynamics to "Saudi Arabia" of about 400,000,000
USD. The obligation (offset) has to be fulfilled in a certain
number of years (5-10 yrs). There are several ways to fulfill
such an offset obligation, and the two main categories are
DIRECT offset, and INDIRECT offset. Direct offset implies, for
instance, a construction of a Saudi co-owned factory that
produces spare parts for Light Armored Vehicles. Or indirect
offset, for instance, financing a factory that produces diabetes
medicine for Saudis.
The rules for these offset agreements are complex, but the concept is
simple. In US they are regulated by an office of the US Commerce
Department, and supervised by the US Congress, that receives a
detailed yearly report on US companies offset activities. (Bureau of
Industry and Security, Office of Strategic Industry and Economic
Security, www.bis.doc/osies ). Parts of these reports are public, thanks
to US true Internet information democracy and constructive chaos.
● First, the overreaching rule of this office is security: no export
of high military tech (also in technologies which have a
possible dual use) to foreign countries (for instance, Syria,
China, ... Saudi,.... Belgium, Portugal.. UK, Israel, etc.).
Military tech transfer is a very sensitive national security
● Second, the office establishes a very sophisticated system to
"assess the value" of the type of "offset" activity. There are
many codes to measure offset values, that make 1 USD
invested in an environmental offset, valued, for the purpose
of measuring the offset, 1.6 USD (credit value). An
investment of 100 million in certain activities (with a 1.6
multiplier) fulfills a 160 million of offset obligation (with a
saving of 60 million for the offset obligated party).
● Saving American jobs in defense industries is a so-called
economic security issue; for instance, if you produce the
spare parts in Saudi Arabia for a military plane, you loose
domestic manufacturing jobs, or if you finance a foreign
environmental company, you promote competition for US
companies, and therefore a potential loss of jobs in US.
Defense Industry companies may sell their offset obligations to
companies that specialize in offset fulfillment. Actually, they may
outsource it in different ways: subcontracting the offset (part of it),
selling the offset, partnering with the specialist, etc. For instance,
General Dynamics has OFFSET obligations with Italy (since the Italian
army bought so and so), Saudi Arabia (since they bought Y, X, Z),
Portugal, Germany, etc. It can “pay” offsets directly, or using an offset
fulfiller. Monticello Capital is one of these specialized companies in
offset fulfilling. For instance, General Dynamics or BAE, or Augusta-
Westland, or Boeing, or Dessault, subcontracts offset obligations to
Monticello Capital for a 100,000,000 USD “face-value” offset job, and
Monticello can do the job for 20 millions. And all US involved
companies, in addition to unbelievable fringe benefits, make huge
Profiting by paying a debt (offset obligation)?
Yes, if you owe 1,000 and you get out by paying less than 200...
By now, you should have experienced the change of horizon. In the
following parts, I will enter more inside Mike's scheme, that with the
same amount of money fulfills European offset obligations as well as
that of the Saudis's.
Taking the five loaves and the two fish and looking up
to heaven, he gave thanks and broke the loaves. ....
The number of the men who had eaten was five
thousand. (Mark ch. 6)
Mike Pocalyko is fascinated with this famous miracle of multiplication
of loaves and fish. I noted that, before eating at his benevolent table --
always in the most expensive restaurants in cities of all continents --
he kept referring to “break the bread” together. I know this may look
weird to you, but miraculous MULTIPLICATION is key to
understanding his scheme in Erdevel Europa. Mike is definitely a very
clever strategist and he decided to apply his strategical mind to make
money, after having served the US government, including the office of
strategy for the US Navy, etc. Essential to Mike's present strategy
1) Some personal and business connections with the defense
industry in US
2) A group of well paid people in Monticello Capital who are loyal
veterans, definitely with different degrees of understanding
3) High capacities of psychological manipulation and information
4) Sophisticated accounting and legal schemes. Pocalyko’s wife
and his chief lawyer are in charge the legal and accounting
complexity of dealing with laws and regulations of at least 8
different countries in three continents
5) Small foreign companies, the “little birds” in the Erdevel cage.
Pocalyko’s proposal to all of us in May-Aug 2003 was: “I am a
courageous international US banker/VC, one of the few in US (he said,
perhaps the only one) with European and Middle East experience. You
all have wonderful companies that can make a lot of money in the
Middle East in water and environment. I will finance you, if you
promise me that you spend all the money I lend you in Saudi Arabia,
for the next 5-7 yrs. You will make money and I will too. We will all be
Before moving to the economics and accounting schemes, I need
show another piece of Pocalykos's mind. When he was younger he
edited a book on John Hawkes (American contemporary novelist). The
title of this book is Design and Debris, while his piece in the book is
titled A Trap to Catch Little Birds With (1976). I know you may
think I am digressing. But think, and you will suddenly see Erdevel
Now, lets go back to Erdevel Europa scheme. Erdevel Europa sarl
(Luxembourg, Aug 2003): Pocalyko has chosen four European
companies: Waterleau (Belgium), Siderpol Ingegneria srl (Italy),
Sonne und Energie (Germany), Tecnia (Portugal). In just three years
in Erdevel Europa, three out of four companies went bankrupt.
The forth one is a failure (Waterleau revenues for Pocalyko's
Advanced Environmental Resources was 18,000 euro up to 2007,
Sidepol 22,000, nothing from Sonne und Energie and Tecnia).
The point is simple: either Pokalyko is a business idiot or is an
intelligent and ruthless strategist.
Remember last year Dubai Erdevel Europa Conference (Jan.2-Jan 5
2007?) At least 100,000 USD of actual cost. Siderpol (Engineering)
starred as Erdevel "dancing queen": Siderpol’s yield in 4 years is
22,000 Euro. In any serious business conference everyone should
have started laughing to death for such a poor result. Not at our
conference.... By the way, just in case there is any doubt, Dubai 2007
Conference was paid for with European and Saudi money, only
apparently by Pocalyko’s magnificence and liberality. Mike is not so
stupid to spend that kind of money for a congress that should have
the sign “Welcome Idiots.” He spent our money, or our countries’
money (Belgium, Portugal, etc.). And we even thanked him....
”Mike Pocalyko” invested about 6 Million euros in Europe through
Luxembourg, and another 5 million Euro in SAUDI ARABIA through
Luxembourg. In addition, there are Monticello Capital’s costs to
supervise all their marvelous investments: Monticello Capital four or
five officers (including Pocalyko) travel, lodging, and consultancy fees
are huge; plus Lovells’s legal fees (Pocalyko uses Lovells as much as
possible, if not more). Conservatively, we could estimate 5-6 million
euros of additional fees. In less than 5 years we have at least of
16-17 millions euro “invested.” Investment 17,000,000 euro,
return around 40000 euro...
If you are in Erdevel Europa Group and you still think Pocalyko is a
courageous and/or evil Venture Capitalist, please, you should stop any
further reading now. Not even Mohammed Al Zarah believes in Mike’s
VC tale any longer.
Since, just after 30 minutes conversation with him, one can see that
Mike’s IQ is abnormally high, almost as his ego, the question is: what
is he doing? Intelligence services do not cost that much! Maxwell
Smart (the funny American secret agent fighting Kaos in the sixties
comedy television series Get Smart) or Inspector Clouseau (of the
French Securite) would be considered geniuses if compared with
Mohammed Al Zarah. Erdevel Europa has nothing to do with
intelligence gathering, anti-terrorism, policy making, or
anything similar. What is Pocalyko up to? It is not so difficult:
● First, look at his actions, do not listen to what he says.
His actions have an informative value as much as his
words have a performative meaning. Then, in his words
there is some truth, but in a seriously misleading context.
On the other hand, his actions are always pointing to
the true scheme.
● Second, the keys are: offset, offset multipliers,
multiplication of offset money and, even credits for
losses in bad investments. Design and Debris.
Erdevel Europa companies are the debris and they are
also the little birds. Erdevel Europa is the cage
The horizon of offset agreements is the subject of the first part, while
Pocalyko's way of thinking and Erdevel Europa apparent lack of
success subject of part 2. Part 3 is about Erdevel Europa individual
companies details, the Erdevel Europa Saudi Office, Monticello
services COST, and tax deductions.
A) The Credit Lines for the four Erdevel Companies, and
Erdevel losses in investments.
Waterleau (Belgium). Erdevel Europa invested 1.1 mil euro in
the company by 2007. The credit line is 1.5 mil. The CEO and
owner of the company (Luc Vriens) told me he would have not
used the last tranche of credit line. I would not be surprised if
Pocalyko offered Luc Vriens the last 400.000 Euro tranche
after February 2008, in order “to try to cover” the Portuguese
mess, by showing some real activities of the KSA office with
Waterleau. Luc Vriens received a generic tip from the
beginning that Mike is not a VC, i.e, he knows that it is not
Mike’s money. More than 1.9 million LOSS for Erdevel.
Sonne und Energie (Germany). It was insolvent and
bankrupted in 2007. Erdevel invested almost 1 million euro.
Loss 1.2 million Euro. Erdevel is not pursuing the recovery
of its money in Sonne und Energie. I spoke with the owner,
Herbert Kunze, and he told me that he was surprised and
disgusted with Greathouse’s and Baker’s behaviors. He did not
understand anything about Pocalyko’s actions. Herbert Kunze
just wanted to sell his desalination system, for money and for
a greener world. Blessed European naivete and honesty!
Greathouse is “in charge” of Kunze’s damage control file, but
John is not as good as Jean-Marie Ghislain could be.
Tecnia (Portugal). It was declared insolvent in Nov. 2007 by
the Tribunal of Torres Vedras (Portugal), under Pocalyko's
legal injunction for the restitution of 1.5 millions plus interests.
Erdevel Europa invested 1.5 million euro. LOSS around 1.9
milions. Pocalyko created another Portuguese engineering
company, with almost all Tecnia’s employees. The newco's
name is Envambien (www.envambien.com). It is owned by the
Pocalykos directly, and Mike Pocalyko is also CEO. All Tecnia's
employees, hired by Envambien, testified against Antonio
Ferreira in court. The main reasons indeed for the creation of
Envambien (May 2007) was 1) to get all the employees on the
side of the "Foreign investor" against the former CEO and
owner of Tecnia, the Portuguese Antonio Ferreira; 2) to
continue to get offset certificates from Portuguese authority;
3) to look like a “benign investor,” a “white knight” saving
employees from unemployment. Pocalyko invested another
500,000 euro in Envambien, paying all Tecnia employees and
de facto legally suborning them as witnesses in court against
Antonio Ferreira. Mike payed three or four months of salary
that Antonio Ferreira was no longer able to pay in Tecnia.
Antonio Ferreira does not have a clue about what happened. It
is curious that a possible success of Envambien would be a
demonstration that Tecnia had a good team of people and an
excellent general manager (all Envambien’s employees were
Tecnia’s), and that Tecnia might have been successful, if not
forced to collapse by having to spend contractually a lot of
money in Saudi Arabia. Pocalyko, the "American investor,"
pumped Ferreira a lot, and up to three months before the final
clash between them (Feb 14, 2007), when Pocalyko (through
Baker) organized an employees's assault to Tecnia. Antonio
Ferreira was releasing interviews saying that evil "venture
capitalists" have stolen his patents, his company; that they
made him to spend money in Saudi Arabia while their agent
(Mohammed Al Zarah) was boycotting Euro companies sales
(true), and their purpose from the beginning was to steal his
company (wrong! they could not care less about European
companies. They play a different game).
If Ferreira would only get out of VC’s cage, and if he would just
look at the offset horizon, things would be instantly clear to
him. In Portugal, however, Pocalyko lost control and created a
mess for Portuguese authorities and civil servants.
Siderpol Ingegneria srl (Italy). It was bankrupted in
February 2005. Mike wrote an agreement transferring credits
and debts to Siderpol Engineering srl, just in regards to
Erdevel Europa deal. Loss 1.6 Million euro. Siderpol
Engineering srl accepted (no choice!) a time extension of the
credit to 2010 (2 years extension), that was signed on January
2008. So that the show could go on, all the while with
Monticello services invoicing and offset certificates.
Estimated losses so far, purely on the credit lines by Erdevel Europa,
is about 6,6 million Euros. Three bankrupted companies out of four.
And Waterleau is, as for AER revenues, a failure.
B) The "Saudi office" for the European companies of Erdevel
Erdevel Europa sarl has a Saudi branch, Erdevel Europa KSA,
Riyadh. The office, defined a "cost center," has no revenues of its
own and has been open since the end of 2003. By the end of
2008 the branch cost (actual cost) more than 5 million euro. On
the one hand, the office of Saudi Arabia is a costly service by
Erdevel Europa sarl offered to the four Erdevel companies, in
addition to the credit lines. In the contracts with the four Erdevel
companies, the Erdevel Europa KSA office is supposedly paid back
by service fees invoiced to the four Erdevel companies, i. e., with
a percentage of their revenues (see your Service Fee Agreements
signed in 2003/4). Total revenues received by Pocalyko from the
four Erdevel companies is 40,000 euro in five years. Let us
estimate a loss of 5 million Euro, from Pocalyko’s European
scheme. On the other hand, the Saudi Office is also a stand
alone investment by Erdevel Europa sarl independently fulfilling
offset obligations in Saudi Arabia. This is the Saudi part of the
scheme, and it is the most delicate and most brilliant point of
Pocalyko’s double scheme. It has to do with the multiplication of
loaves and fish. Here in spite of my bloody anger against such a
stand-up comedian and his theater company (Greathouse’s
insightful and enlightening boutade), I must recognize a criminal
genius of superior and morally corrupted intellect. Simple and
marvelous… killing two birds with one stone. Actually, FIVE birds
with one stone! To be precise: FOUR European chickens and a big
C) Management of Erdevel Europa investments (Europe and Saudi
Arabia) by Monticello Capital and other services.
1 The Erdevel Saudi Office is the “Export Assistance” offset, as seen and perceived from the European side. It is
instructive to check Tecnia's contracts with Pocalyko, June 2004 and May 2005. Through May 19, 2005 contracts
Pocalyko adds the “FDI part” of Erdevel offset to the Portuguese side, as for the rest of the European group. The dates of
these contracts speak. Though, why Pocalyko contacted Ferreira in 2003? Ask Patria...
All the seemingly useless trips to Europe and to Saudi Arabia,
the best hotels, the high rate of consultancy of the 5 people of
Monticello Capital, the Lovells expensive services and other
legal companies are all connected with the Erdevel account.
Monticello Capital lives off an Erdevel Europa "account." Mike
controls the European “SARL” client and Monticello milks the
wealthy client with creative invoicing. I remember Luc Vriens
repeating: I do not know what they are up to, but I do not
want to pay for all this and the useless idiot in the KSA office.
Here I can only guess. But, I would say, that is at least 1.5
million USD per year. I believe it is a very conservative
estimate. Multiplied by 5 years we are at a sum of about 7.5
million USD of cost. I am sure that there are least two balance
sheets (US and Offset). In any case, this is Barbara S.
Pocalyko’s part. Accounting is at the center of the entire
scheme: if it were for Barbara, Erdevel would be nothing but
accounting. She hates acting and comedians. But
unfortunately it is not possible to do without, there need to be
a costly comedy: Mike is the star of the long play, the true
protagonist, while John will get nominated for best supporting
actor, etc. But, if it was up to Barbara, the reality manager,
Erdevel would be only accounting. She is in charge of The
Matrix of Erdevel.
D) Erdevel Europa scheme has apparent costs of at least about
16/17 million euro in 5 years. With no hope of recovery of the
investment. 5 years, 40,000 euro of revenues. No hope for the
future of growth of Erdevel companies in Saudi Arabia or any
change. Pocalyko's Iraq reconstructions stories are one of the
many false targets he supplies to our imagination; Zarah is there
to kill any job opportunity.2
As I stated many times, it is not, it cannot be, an operation of
intelligence or any other "spy business." The Saudi chosen as CEO
is paid 450,000 euro a year net + benefits: he behaves like a man
who has won the big lottery without buying the ticket, and he still
does not believe in it. Zarah was difficult to find, and it is
understandable that it took so long for Pocalyko to hire him.
E) Erdevel Saudi office instead of promoting Erdevel Europa
companies puts all sorts impediments to their selling and marketing,
2 As soon as Eng. Antonio Ferreira was forced out of Erdevel, away from Mohammed al-Zarah and Pocalyko, in 2008 he
acquired a 15 million Euro job in Iraq with, no company. Amazing! GD's offset for the support of Portuguese companies
in the Arabian Peninsula?? No jobs with Pocalyko-Zarah's support. 15 million job with their opposition.
and it has been for long a puzzle to us (and to the Saudis). Antonio
Ferreira, Herbert Kunze, Tom Lishka (Sonne und Energie) were right
about it. Tom Hanson (Waterleau) too. While Jean-Marie Ghislain and
myself were diplomatic about it, but in total agreement with anyone
who spend more than 3 hours in Riyadh Erdevel Europa office. The
Riyadh Erdevel office as bridge to sell in Saudi Arabia and beyond was
and is a fake. Incredibly beautiful and expensive, totally useless, and
more than useless, a true fatal obstacle. It is so evidently a fake that
is perhaps the weakest point of Mike’s show, followed by the Northern
Virginia Monticello office.
There are so many stories about it, and about Mohammed’s ways to
kill any sale opportunities that there is the need for another detailed
report on this issue. Mike Pocalyko loves costs and it does not want
The four Erdevel companies were chosen in Spring -Summer 2003, in
a hurry, apparently with total disregard towards their balance sheets.
The criteria for investments in companies given to us and also
publicized in Monticello Capital web page were totally disregarded.
Monticello Capital has chosen companies knowing that, if they had put
major efforts in Saudi Arabia, they would have lost money, gone
bankrupt, and made losses for Erdevel.
F) How and why does one like Mike throw away 16/17 million euro
The explanation on how and why is more precise in next part (4):
military offset obligations with multipliers and with a duplication
effect in Europe and Saudi Arabia. For now, I want to add that,
according a company which invested 17 million Euro in a bad
investment, can deduct it from its taxes. But tax deduction is just
a defensive step. This fiscal mechanism is the only part that
Arthur Evangelista, Zarah’s external outsourced brain, understood
of Erdevel Europa scheme. 2 years ago Zarah was going around
Riyadh office bragging that he is Mike’s chosen and trusted
partner to screw IRS. That is why, in his mind, Mike pays him that
Zarah’s (Evangelista’s) understanding is but a small part of the
truth, and it should be taken into account. But is no explanation.
How much money is Monticello making with such an offset
Monticello is an offset fulfiller of General Dynamics or any other US
defense contractor, it does not matter, and to understand now in
details what company or what equipment would distract you from
understanding the scheme.
Offset Fulfiller The company that provides the
offset compensation, which is usually the defense
firm who signed the offset agreement. However,
there are times when the obligation is not related to
the defense firm’s specialty and therefore is
contracted out. For example, if marketing is a
component of the offset requirement, the defense
firm may hire a marketing company to satisfy the
obligation. The marketing firm would then be the
(January 2007, US Dept. Of Commerce,
Bureau of Industry and Security, OFFSET IN
DEFENSE TRADE, 11th Study. Appendix G:
Glossary and Offset Example)
General Dynamics has offset obligations, for sales, in Italy, Germany,
Belgium, Portugal (Europe), and Saudi Arabia. In other words,
Monticello is “hired” to pay "the debts" agreed with each countries
when General Dynamics sold its hundred millions, billion of dollars of
weapons. General Dynamics was paid an overprice by our countries
because of these offset agreements.
It may be useful looking at official data transmitted to US Congress
and publicly available to understand the size of US offset agreements
(credits) in general for our four countries plus Zarah’s country, in
Portugal had $96,753,639 of actual offset credits with US
defense companies (Credit Value: $161,509,639). Average
multiplier 1.6. (Note: In 2003 General Dynamics buys Styer-
Daimler-Puch, that signs a contract and offset agreement with
Belgium had offsets credits for $335,225,267 (Credit value:
$356,716,945). Average multiplier 1.06. (Note: idem as
Portugal, with GD's Mowag)
Germany had an offset credit for $906,503,157. No multiplier.
Italy had offset credits for $2,216,816,031. Very limited
Saudi Arabia had offset credits with US companies for
$1,427,400,000. Multipliers ad libitum.
(Source: January 2007, US Dept. Of Commerce, Bureau
of Industry and Security, OFFSET IN DEFENSE TRADE,
11th Study.Table 5-2, sect 5-3)
These numbers can be useful to convince anyone of something that
most Europeans like you, your people, lawyers, journalists, and
citizens ignore. Never underestimate people’s ignorance is one of
Pocalyko’s most important rules in information management.
The money invested in our companies is not Pocalyko’s. They are
offset credits belonging to our countries: Portuguese money, German
money,... Saudi money. “We” spent our money to hire and to pay a
man like Zarah to assist us in selling in Saudi Arabia.
An important detail on “multipliers”. Most offset beneficiary countries
have "multipliers" for offset overseas investments. For instance, if
you invest 1,000,000 (actual value) with the multiplier of "2" you
have a fulfillment of 2,000,000 of offset obligation by General
Dynamics (technically "credit value," vs. "actual value").
Erdevel Europa, with their accounting system (remember: Mike
articulates the investment in three main components: credit lines,
Saudi office services, Monticello services), has invested an average of
4 million Euro on each European company (16 millions / 4 = 4
millions), as from part 3. If there is a multiplier of "2" for each
European country, and a total investment of 4 million euro for each
European company , Monticello fulfills an 8 million OFFSET DEBT for
General Dynamics for each of the 4 Euro companies. European total:
Monticello fulfills 32/34 million euro of credit value.
Now in Saudi Arabia. Monticello Capital is satisfying Saudi OFFSET
obligations owed by General Dynamics. Let us keep the multiplier
"2," though I believe it is a conservative assessment for Europe, let
alone for Saudi Arabia. By financing a Saudi environmental “office,”
headed by one of the major and most efficiently subservient Saudi
idiots one can find, and directing further financing for Saudi Arabia
through Erdevel Europa and through money supplied by four
European companies (CFAs have the credit lines channeled to Saudi
Arabia). We have a total of at 32/34 million euro of offset credit value.
With these 17 million Monticello satisfies 34 millions of Offset
obligations in Europe for General Dynamics. With the SAME 17 millions
Monticello Capital satisfies offset obligations for General Dynamics in
Saudi Arabia. Total of offset satisfied obligations for General Dynamics
is 68 million euro.
The matrix/structure of Erdevel Europa is not about our sales. It is
important to see that, in this artful scheme, European/Erdevel
companies perceive the investments in Saudi Arabia as made
for Europe’s benefit, while the Saudi perceives the same
investments in the European companies as made for Saudi
Arabia’s benefit. It is only apparently a reciprocal misunderstanding.
But the canny part is: it is neither for Europeans nor
The magics of accounting: It is like being in front of a mirror with 34
dollars in your hands, and thinking they are 68, because you count
your dollars and the mirror’s. This is the “supernatural” offset.
MULTIPLICATION of money. The money and services are given as
investment to the Europeans for the Saudi Market (from the European
point of view), while the same money is perceived as a foreign direct
investments and technology transfer in Saudi Arabia for the Saudis.
The same money feeds the Europeans and the Saudis: 34 millions to
the Europeans and 34 millions to the Saudi. It is only 32, but is
counted for the offset as 68. This is also why the Saudi game is so
important: one Saudi counts, on offset credits table, at least as four
European heads. Zarah’s head is four Ferreira’s heads in Monticello’s
accounting book, the Matrix.
It is important that the European and Saudi investments go bad, (in
spite of the fake efforts of Monticello to support the true efforts of all
EU companies). In other words, there was a predesigned debris. The
bankruptcies, the losses, the failures are the pre-designed valuable
debris. This is part of Pocalyko's design to make money. We are the
disposable "little birds" in this game, in the Erdevel cage. The
important point is showing the evident real intent of Mike’s
investment, also to show Erdevel’s liability, and beyond . Ferreira,
Kunze, Vriens and Guietti all understood that Pocalyko’s efforts to
support our companies were disingenuous. It is so embarrassingly
clear in the choice of Zarah as Saudi CEO, and by several other
actions. But Ferreira, Kunze, Vriens, and all the rest of the crowd,
Thomas, Jean-Marie, Arthur, Mohammed, Joao, Ron, Guy, etc. do not
why. Change of paradigms: offset (our European money), not VC (not
Pocalyko’s money). We have been taken, against our will and without
our knowledge, into an offset scheme. For Monticello’s US clients type
of investment our bankruptcies were pre-designed, and, in any case,
desirable, from an accounting point of view. Would you have entered
into the Erdevel agreement if you knew the truth? We were all told
More: Do you know that while we were in Riyadh working for a US
military offset, Saudi fundamentalists kidnapped Paul M. Johnson, an
engineer working for a US military offset? not far away from our
Erdevel KSA building, through a fake Police road block, all terrorists
wearing Saudi Police black uniforms. How many times did you stop at
a road block in Riyadh? They beheaded Johnson, and his head was
found in a freezer in a Riyadh apartment weeks later. WE WERE AN
AMERICAN MILITARY OFFSET in Saudi Arabia in 2004, and we
did not know it. This is the kind of danger that we have been
exposed to without ever being told.
My calculations are not precise, but the method is. For instance my
calculations are based on a "2" as average multiplier for offset
FDI/Export Assitance/Tech Transfer; it would still be a brilliant scheme
with "1.6" . But it is higher, i.e., 4 or 5 or more in Saudi Arabia. In any
case Mike’s scheme would work great also with a multiplier inferior to
1! Also, I do not know what Monticello actually charges to the Erdevel
account, I just made an extremely conservative guess. But my
analysis is true and correct and we are in the horizon of a
sophisticated offset fulfillment. A realistic assessment of the total
credit values of Pocalyko's offset scheme by 2008 is between
150-200 million USD.
Inside Monticello Capital I believe that the complete scheme is known
in details to three, maximum to four people. Precisely, Duane, Brad,
Roger, Debra knew and know that Monticello is an offset, but they are
not as aware of the whole mechanisms as Barbara, Mike, and De Silva
are. I do not know about John. But here, about the inner circle, I am
just guessing. In any case, Duane Baker was either the best actor, or
he did not know the “screwing plot.” (he knew about the offset,
One may agree with US defense companies, US think tanks, and
defenders of US national interest that offsets are unfair market
practices, mostly imposed by Europeans. But US companies, by
accepting it, charge the cost in the sales price. Moreover, one
can also see a moral and economic security issue in the offsets, but it
does not justify Monticello in screwing deliberately European
companies and families with a fraud like Erdevel Europa. And it would
totally unacceptable and fascist to try to find some justification for a
money-making fraud in a “national economic security” ideology that
perceives the growth of the economy of another nation as a danger. It
would be a non-American ideology.
In the Erdevel scheme your/our bankruptcies or insolvencies are
useful, desirable and desired (possibly, after 5/7 years) for Erdevel
and for Monticello. Actually, it is expected. Not because Monticello
wants your patents, your markets, your employees, or out of US
malevolence and resentment against us Europeans. Just offset
accounting! And that is all you need for now.
Monticello Capital Llc -- Reston Town Center - One Fountain Square --11911 Freedom Drive, Suite
710 Reston, Virginia 20190-5629. (www.monticellocapital.com)
Monticello Capital is the operational center for “the Pocalykos,” though its only apparent business
seems to be Erdevel Europa Sarl, that is the “money making” machine. By the end of 2007
Monticello Capital was still showing off an additional address in a prestigious New York City
location (245, Park Avenue,39th Floor, NY, 10167-5642) but now this location has disappeared from
the webpage. To be sure, this office was but a virtual office, for appearances sake. The Reston office
is a small apartment (about 100 square meters), with 5 micro rooms/offices, a small openspace, a
kitchen space with a system printer and photocopier, a meeting room, and a modest reception;
restrooms are outside of the office, but in the building. Actually, Monticello Capital is a company
with no references. I believe that both the above-mentioned locations belong to REGUS, that is a
company leasing furnished and staffed offices, also for a very short time; definitely, the New York
Park Avenue “Monticello” office is a Regus “virtual office.” The same Monticello's “location” in
Reston hosts also: 1) the CPA individual business of Mrs. Barbara S. Pocalyko 2) Advanced
Environmental Resources Inc. (AER), registered in Delaware, but located in the same Reston
“apartment.” Monticello Capital registration is S025351, filed by Michael Pocalyko on Jan 7, 1998
in the State of Virginia. It is noteworthy that the “principal office address” of Monticello Capital Llc
is not the address appearing in the webpage of Monticello. According the Virginia Corporate
Commission Register, Monticello’s official address is 12932, Oak Lawn Pl. Oak Hill, VA, 20171-22,
that coincides with Michael Pocalyko's and Barbara Pocalyko's house. In sum, beyond the
appearances of an “international bank,” Monticello Capital Llc , is not only a “family company,” but
also a “ home office” company .
Michael N. Pocalyko (shareholder and managing director). Born in Fountain Hill, Pennsylvania, on Dec
24, 1954; residing in VA-12932 Virginia, Oak Hill, Oak Lawn Place. Retired Lt. Commander US Navy;
former unsuccessful candidate for the Republican Party in Virginian Assembly in 1999. He worked at the
strategy office of the US Navy in the '80. Then he assisted the US Navy Secretary, especially on
international procurement and “collateral agreements.”
Barbara S. Pocalyko, (Barbara Snelbaker Pocalyko) Certified Public Accountant, born in Bethesda,
Maryland, on Feb 24, 1954; residing in VA-12932 Virginia, Oak Hill, Oak Lawn Place. Erdevel Europa's
shareholder and director.
John M. Greathouse, born in Massachusetts, on May 5, 1946. Retired US Army Colonel; Erdevel Europa
director, and Erdevel Europa KSA director.
Duane M. Baker, retired US Navy Captain; submarines, Pacific US Navy Bases, etc. Baker was forced to
resignations in the Summer of 2007, because of the Portuguese events related to Tecnia. He was considered
the Monticello/Erdevel's scapegoat for his incapacity to understand and curb Antonio Ferreira as well as
all the events that lead to employees's organized assault to Tecnia on “Valentine's Day 2007.” He
negotiated his dismissal from Monticello/Erdevel well: right after leaving, in the Summer of 2007, he bought
a new house for about 1.35 mil not far away from Monticello Capital. In Portugal Baker's resignations
coincides with the public involvement of Rui Pena, Arnaut in Tecnia's case. (Baker joins in 2005, resigns
Debra M. Biely, retired US Marine Major, was in the staff of the US Congress dealing with the International
Space Station (joins in 2006).
Roger D. Allenbaugh (resigns 2004)
Brad M. Wilkinson (resigns 2006)
Advanced Environmental Resources (AER), 1209 Orange Street, Wilmington, DE,
USA. (see www.monticellocapital.com)
A Delaware shell company, that looks like a personal bank account of M. Pocalyko. It was established
March 10, 2003, with the Corporation Trust Company, Corporation Trust Center, Reg. N. 19801.
Contractually this company collects positive cash flows from European Saudi operations; by mid 2007, 5
years of operations, AER received less than 10,000 Euro a year. Also it is involved in the offset certificates, as
further limitation of the Pocalykos's liability.
Erdevel Europa Sarl – (LGT Luxembourg) boulevard Prince Henri, 3 Luxembourg – 1724. In 2007
the address changed to Rue Goethe 1, L-1637 Luxembourg; ( w ww.erdevel.com )
Erdevel Europa has no office of its own. It used offices, directors, and address of a Liechtenstein
Trust in Luxembourg, the famous LGT. Recently it moved to another trust, i.e. the offices of Alpha
Management Trust. Erdevel Europa sarl is “paper company,” substantially just a little bit more than a
bank account, that is a web page with annual balance sheets. It was established through LGT in Aug.
12, 2003, the company's registration number is B95044 and its capital is set at 2 million Euros.
Erdevel Europa has running cost for the Riyadh Branch (around 1 mil Euro a year), the management
of the investments (Monticello) and holds “shaky investments” for about 5 millions in the four Euro
companies. Erdevel Europa has no actual revenues, and no possibility for revenues
(contractually), from Saudi operations. It is a “box” to collect fiscal losses and offset credits. One of
the most significant things for Erdevel Europa is the attempt to quietly distance itself from the tax
evasion and money laundry scandal exploded in Feb 2008, when German BND came out with
thousands of LGT bank accounts connected with tax evasion and money laundry. LGT's clients were
warned of the problem in advance and they were advised to move their businesses to other
Luxembourg Trusts, since LGT branch was going to be put in liquidation as part of LGT “damage
control” strategy. (Synthesis: in 2007 LGT disappears, Michal Wittman stays as director, and Alpha
Management, new and less conspicuous Trust, takes over).
Erdevel Europa Riyadh Branch – Abraj Atta'awuniya 12th floor, South Tower – King Fahad
Road. P.O.Box 53558 Riyadh 11593, KINGDOM OF SAUDI ARABIA. (www.erdevel.com)
The Riyadh Branch is the only “real office” of Erdevel Europa. It is a costly and impressive office in
one of the best locations in Riyadh, with a splendid meeting room (Rent is 300,000 SAR/year). The
“Branch,” like a stand-alone company has its own balance sheets and its Board of Directors (M.
Pocalyko, M. Zarah, J. Greathouse). Established on April 17, 2004 at the Riyadh Chamber of
Commerce (Registration n. 1010196799) and previously certified by Saudi Arabian General (foreign)
Investment Authority on March 23, 2004 (SAGIA license 62/1/04). On paper, the branch should be
engaged in the construction, maintenance, and operation of water desalination and waste water
treatment. Its costs are real “revolving” bribing system to involved Saudis: disproportionate salaries,
fake consultancies, etc. (4,000,000 SAR/Year for 3+1 people).
Erdevel Europa List of Emails
Michael N. Pocalyko
Chairman of Erdevel Europa
Barbara S. Pocalyko, C.P.A.
Vice Chair of Erdevel Europa
John M. Greathouse
Executive Vice President of Erdevel Europa
Roger D. Allenbaugh (resigned)
Vice President of Erdevel Europa
Heather L. Nix (resigned)
Executive Assistant to the Chairman of Erdevel Europa
CEO of Erdevel Europa in the Kingdom of Saudi Arabia
Marketing Manager of Erdevel Europa in the Kingdom of Saudi Arabia
Engineer of Erdevel Europa in the Kingdom of Saudi Arabia
Director of Erdevel Europa
Managing Director of LGT Trust, Luxembourg
Director of Erdevel Europa
Managing Director of LGT Trust, Luxembourg
Director of Erdevel Europa
Professional Staff at LGT Trust, Luxembourg
Erdevel Headquarters Staff
Assistant to Herr Krumnau at LGT Trust, Luxembourg
CEO of Sonne+ Energie
Engineer of Sonne + Energie
CEO of Waterleau
Partner of Waterleau
Partner of Waterleau
Principal of Siderpol
Principal of Siderpol
CEO of Tecnia
1) Sonne und Energie, Germany – signs with Pocalykos in Aug 2003 -
Bankrupt in 2007
2) Waterleau – Belgium -- Signs with Pocalykos in Aug 2003.
3) Siderpol – Italy
Siderpol Ingegneria srl – Italy --Signs with Pocalyko in Aug 2003 –
Bankrupt in 2005
Siderpol Engineering srl – Italy --Signs a new contract with Pocalyko in
4) Tecnia – Portugal -- Signs with Pocalyko in Jun 2004 – Bankrupt in 2007
Envambien SA – Pocalyko as Envambien's CEO signs a new contract
with himself as “benign investor” in 2007(Edifício Terraços do Sol, 11D
Estrada Nacional N8 2665-258 Malveira)
The structure of the contracts between Pocalyko (Erdevel Europa – AER) and the 4 Euro Companies is identical. The
complete contract is more than 50 pages long. It is divided in three main parts:
a) Foreign Direct Investments described as Credit Facility;
b) Support to the Penetration of the Saudi Arabian Market described as Service provided to the
European company by Erdevel/AER mostly through the Erdevel Riyadh Branch (Assistance in
c) Option/Lien on the Equity (ownership) of the financed companies.
In the first part (a), the most important part is that all money of the FDI (the “borrowed money”) goes TO Saudi
Arabia (art. 3). In the second part (b) the entire Erdevel Europa costly structure in Saudi Arabia appears as if
Market Penetration Service to the Euro companies. None of the 4 European companies sold anything through this
support. Actually, three out of four have gone bankrupted in the effort. The Belgian company was able to find a
private equity fund to survive this Pocalykos' treatment. This is the most difficult point and also the genius of
Pocalyko's fraudulent mind:
● From a European Point of view it looks that the investment for the success of the Euro
companies is the (a) FDI + (b) the Saudi SUPPORT.
● But from the Saudi point of view it looks like that all money “given” through Pocalyko's
structures ends up in Saudi Arabia (i.e. there is a double POSITIVE cash flow from Europe
to Saudi Arabia: first because the financed money have to be spent in Saudi Arabia, and (b)
the money spent from LGT Luxebourg directly on the Riyadh Branch.
With the same money Pocalyko gets credits from the 4 European Countries for supporting the internationalization of
small Euro companies and he gets credits from Saudi Arabia for Foreign (Direct and Indirect) Investment in Saudi
Arabia and for Transfer of Water and Environmental Technology, so needed in Saudi Arabia. To keep the fraud
working well, it is necessary that there is no positive cash flow toward Europe from Saudi Arabia, i.e., no sales.
This scheme is a simplification to help the understanding of
what is going on outside of the Portuguese borders.
The key to understand this sophisticated process is to follow
the cash flows. Erdevel Europa (LGT) financing to the 4
European companies, total around 6 millions Euro
(Contractual Agreements, CFAs art. 3) is destined TO Saudi
Arabia. There is also direct cash flow TO Saudi Arabia to pay
for Riyadh staffed office (other 5 millions Euro in 5 years).
There is no cash flow OUT OF Saudi Arabia TO Erdevel
Europa. The minimal cash flow out (less than 50,000 euro in 5
years) goes to Delaware (AER) through London from European
Bank Accounts (not from Saudi). TOTAL: 11 mil + other fees.
From the Saudi point of view this appears as a great water
and environment technology transfer, i.e. an offset in one of the
designated sectors with the highest multipliers. The Saudi office
does not work to assist the 4 Euro Company export. The
Pocalykos claim the Saudi offset certificates. With the
same amount of money, The Pocalykos claims offset
fulfillment certificates from each Euro country (e.g, Belgium
does not accept FDI, but only export assistance; Portugal
accepts both. Portuguese multipliers are higher).
TOTAL: 11 mil + fees
Then, with all these triggered bankruptcies, The Pocalykos
claim also credits for bad investments, as “cost of the sales” +
interests . Also, Monticello's services, the legal fees, etc. are
part of the so-called “investments,” i.e., they are “multiplied”
too, and twice.
2003 – GD Acquires Steyr Daimler Puch