Fraud in The Accounting Profession Accounting 1

The World Bank Tokyo Office Telephone: (03) 3597 6650
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 10F, Fukoku Seimei Building Fax: (03) 3597 6695
INTERNATIONAL DEVELOPMENT ASSOCIATION 2-2-2, Uchisaiwai-Cho Cable: INTBAFRAD TOKYO
Sunday, December 2, 2018
Dear People,
I am attaching my emails to and from accountants. These

show massive fraud and corruption wherever you look.
None of the accountants, none of them, were willing to
admit their role in any of this fraud. The accountants did
not add up.
Sincerely,
Karen Hudes
Acting General Counsel, International Bank for
Reconstruction and Development
Overseer Mandate Trustee, Global Debt Facility, TVM-LSM-666
From: Karen Hudes

To: howard.isaac@international.gc.ca
Sent: Wed, Apr 28, 2010 9:08 am
Subject: Fwd: The World Bank's Internal Controls
Dear Howard,
Jules Muis is the World Bank's former Controller. Jules put me in touch with Ian Ball, who
heads the International Federation of Accountants, which develops standards for the
accounting profession. I met with IFAC several months ago.
Are you aware that the April 25, 2010 statement of James Flaherty at this year's spring
meetings is not available--instead last year's statement is posted.
http://web.worldbank.org/WBSITE/EXTERNAL/DEVCOMMEXT/0,,menuPK:60001657~
pagePK:64001141~piPK:64001176~theSitePK:277473,00.html
Is there any way to schedule a briefing session for the Board of Executive Directors so that
the World Bank's compliance issues can be dealt with properly? We cannot leave the heavy
lifting to the US institutions by themselves or it may backfire.
Sincerely,
Karen
-----Original Message-----
From: Karen Hudes
To: julesmuis@verizon.net; ianball@ifac.org
Cc: mmordasini@worldbank.org
1
Sent: Wed, Apr 28, 2010 9:00 am
Dear Jules and Ian,
KPMG's lawyer is trying to prevent its team auditing the World Bank's internal controls from
having to answer the specific issues raised by my case.
I am going to see if the Public Company Accounting Oversight Board will help. But PCAOB
is now under duress, because the US Supreme agreed to review the constitutionality of
PCAOB (the SEC appoints PCAOB's board members, rather than the US President)
http://www.webcpa.com/news/Supreme-Court-Questions-PCAOB-Constitutionality-
52678-1.html PCAOB has had many comments on previous audits carried out by KPMG.
If the US accounting oversight agency (PCAOB) cannot correct KPMG's external audit of the
World Bank's internal controls, the World Bank's Board may have to correct its corporate
governance problems without reference to the internal audit.
I am copying Mr. Michel Mordasini, the Swiss ED on the World Bank's Board, for his
information, because KPMG is a Swiss cooperative. KPMG international is supposed to
maintain uniform standards of work, and enhance the name of KPMG. I have also informed
advisers who work on governance issues in the German and Canadian Executive Directors'
offices of this problem.
Best,
Karen
_
From: Karen Hudes
To: Tips@pcaobus.org
Sent: Wed, Apr 28, 2010 8:02 am
My calls to the tip line and to Mike Plotnick for the past week have not been returned. I am
coming to PCAOB this morning in order to speak with someone.
Sincerely,
Karen Hudes
From: Karen Hudes
To: ugehlen@worldbank.org; cmacwilliam@worldbank.org
Sent: Tue, Apr 27, 2010 6:45 pm
For your information. KPMG's own control environment was called into question by a
UNDP whistleblower who reported corrupt practices in KPMG's Nairobi branch. [1]
2
[1] UNDP Whistleblower Details Comprehensive Wrongdoing in Somalia Projects, May
14, 2008, available at:
http://www.whistleblower.org/content/press_detail.cfm?press_id=1373
From: Karen Hudes
To: dshontz@kpmg.com
Cc: Tips@pcaobus.org; ianball@ifac.org; karrt@sec.gov
Sent: Tue, Apr 27, 2010 6:12 pm
Subject: Re: The World Bank's Internal Controls
Dear Mr. Shontz,
My recollection of our first conversation was that I lamented the same failures in the
World Bank's Legal Department as GAO diagnosed in their 1999 report, and that by
default I was trying to do what I could to compensate for the resultant control lapses. I
do not recall your ever raising any misgivings about our conversations, either verbally or
in writing.
It is unusual that KPMG would not want the head of their audit to communicate with
me directly, but to go through counsel. This is especially unfortunate in light of
your hostile attacks out of context. I would like a written acknowledgment from the
head of KPMG's team that is evaluating the World Bank's internal controls that he
knows of my Sarbanes Oxley complaint and the issues I have raised about the IBRD's
compliance on the bond markets, specifically:
 my advice to the World Bank's Audit Committee about breaches in

the securities laws in the Philippines, inaccurate evaluation of
World Bank supervision of the Philippines Banking Sector Reform
Loan, and my comments on INT's defective report to the Audit
Committee
 the Legal Department's falsification of evidence in the World Bank
Administrative Tribunal, and the General Counsel's promotion to
ICSID of Nassib Ziade, the WBAT Executive Secretary, two weeks
after he admitted the tampered evidence
 the Legal Department's refusal to permit me to have external
arbitration of the validity of the Memorandum of Understanding, as
required by US appropriations legislation in 2005,
 the refusal of the President of the World Bank Administrative
Tribunal to allow me to continue my employment despite the
express breach of the Memorandum of Understanding, his active
arbitration practice with ICSID, and his exceeding his authority by
3
unilaterally imposing a stay, and thereby preventing other judges
on the Administrative Tribunal from considering falsified evidence
 the failure of the Office of Ethics and Business to sanction ethics
violations in the Legal and Health Departments and breach of the
World Bank's whistleblower protection policy by assigning EBC the
task of supervising a consultant to review my claims of
retaliation when EBC was precluded from further involvement in
my case
 the failure of the internal audit department to correct the inaccurate
evaluation on the Philippines Banking Sector Reform Loan
 that the Staff Association has stated that staff morale has been
impaired by the above internal control lapses
 that the World Bank refused to answer the letters from Senator
Lugar on my case and refused to cooperate with the GAO inquiry
 what the World Bank's Audit Committee has done with respect
to the above internal control lapses, other than appointing KPMG to
audit the World Bank's internal controls
Thank you.
Sincerely,
Karen Hudes
_
From: Shontz, David B <dshontz@kpmg.com>
To: Karen Hudes
Sent: Tue, Apr 27, 2010 11:36 am
Subject: RE: The World Bank's Internal Controls
Ms. Hudes:
I have no idea why you would be telling an administrative assistant at KPMG that you
were once on the long list for General Counsel at the World Bank. In fact, you told me in
our first call that you were the Acting General Counsel for the World Bank even though
you had been fired (and I do not understand the logic of that either).
But to be clear, I have not suggested that you proceed along any lines whatsoever other
than that you not contact my clients, and instead direct communications though me,
their attorney (or through the Hotline or the Ombudsman). Any communications to me
should be in writing.
David B. Shontz, Associate General Counsel

Office of the General Counsel, KPMG LLP, 757 Third Avenue, New York, NY
10017
Cell: 914.714.5479; Cell2: 914.479.9092; Office: 212.909.5305; Office2:
914.630.4298 Fax: 212.954.5439
4
The information in this email is confidential and may be legally privileged. It is
intended solely for the addressee. Access to this email by anyone else is unauthorized. If
you are not the intended recipient, any disclosure, copying, distribution or any action
taken or omitted to be taken in reliance on it, is prohibited and may be unlawful.
From: Karen Hudes [mailto:Karen Hudes]

Sent: Tuesday, April 27, 2010 11:19 AM
To: Shontz, David B
Cc: Aalmofadhi@worldbank.org; Tips@pcaobus.org; heidi_crebo-
rediker@foreign.senate.gov; joe.onek@mail.house.gov;
Daniel.McGlinchey@mail.house.gov; Chris_Armstrong@finance-rep.senate.gov;
cory_gill@foreign.senate.gov; dgetter@crs.loc.gov; thomas_caballero@legal.senate.gov;
nbjorksten@crs.loc.gov; ianball@ifac.org; rtreffers@worldbank.org;
nmotapinto@worldbank.org; jhagan@worldbank.org; smoorehead@worldbank.org;
mmordasini@worldbank.org; mhasan@worldbank.org; swatson1@worldbank.org;
gmajnoni@worldbank.org
Dear Mr. Shontz,
Thank you for responding to unresolved corporate governance and ethics problems at
the World Bank which I raised in my email to you and to the Chairman of KPMG. I
followed up this morning with a fax to Mr. Timothy Flynn since I did not have his
correct email address and will direct a copy of this response to him as well. I
regret having to communicate complex issues to KPMG through your administrative
assistant (whom I simply asked to put me in touch with the individual at KPMG who is
directing KPMG's audit of the Bank's internal controls commissioned by the Bank's
Audit Committee. She must have misheard my statement to her that I was once on the
long list for the Bank's General Counsel).
The SEC, PCAOB, United States District Court for the District of Maryland, Bar
Counsel of the District of Columbia Court of Appeals, Government Accountability Office,
and US Congress are all involved in this protracted matter, and I think it is
counterproductive to proceed along the lines you suggest.
Sincerely,
Karen Hudes
_
To: Karen Hudes; tflynn@kpmg.com
5
Sent: Tue, Apr 27, 2010 9:51 am
Ms. Hudes:
You apparently did not understand my prior email. I am not asking you to maintain
“secrecy” on this matter, or asking you to ignore what you believe to be your
professional and ethical obligations. You obviously may email or call whomever you
wish outside of KPMG about anything thing you wish to bring to their attention about
the World Bank or any other matter.
I am asking you to stop communicating with our staff (the latest two calls occurred
yesterday, including one where you apparently advised an administrative assistant that
you were the General Counsel of the World Bank and another where you apparently
advised one of our operations personnel that you had been fired from the World Bank).
As you point out, you are an attorney, and not an individual in this context. If you wish
to communicate further with KPMG LLP on this matter, please refer all communications
to me as the attorney for KPMG (except to the extent you choose instead to
communicate matters to the KPMG hotline, or for that matter, to the KPMG
Ombudsman). I will direct your communications to the appropriate individuals within
KPMG LLP.
Thank you for your attention to this email.

Cell: 914.714.5479; Cell2: 914.479.9092; Office: 212.909.5305; Office2:
914.630.4298 Fax: 212.954.5439

Sent: Monday, April 26, 2010 9:14 PM
To: Shontz, David B; tflynn@kpmg.com
Dear Mr. Shontz,
I do indeed question your instructions and do not agree to comply with them. I am
not an individual in this context; I am an in-house lawyer who is obligated under the
6
Articles of Agreement of the International Bank for Reconstruction and
Development, US securities laws, and the DC bar code of professional conduct to bring
the IBRD into compliance on the capital market. KPMG has been entrusted with the
audit of a public international organization, and your demand of secrecy
also contravenes ethics codes of the accounting profession and KPMG's professed
values. Instead, I intend to forward your email to the chairs of committees of the Board
of Executive Directors of the World Bank, and to IBRD's oversight agencies, as I am
obligated to do and as the public interest requires.
Sincerely,
Karen Hudes
_
To: Karen Hudes
Sent: Mon, Apr 26, 2010 6:35 pm
Dear Ms. Hudes:
I’m sure you understand that we cannot comment to individuals on matters relating to
our clients.
The issues you raise have been directed to the appropriate individuals within KPMG.
To the extent you have any additional information, please submit that information only
to me, or to the Hotline that you have referred to in your past communications. I am the
attorney for KPMG on this matter, so, please do not contact anyone else at KPMG
regarding these matters (other than any Hotline communications you may wish to
engage in). I will direct any comments that you send to me to the appropriate parties.
Please let me know if you have any questions about my instructions above. Otherwise,
as an attorney yourself, I assume you will comply with them.
Regards,

Sent: Monday, April 26, 2010 6:09 PM
To: Shontz, David B
Dear Mr. Shontz,
What conclusion does KPMG draw about my Sarbanes Oxley complaint and the
IBRD's compliance issues?
7
As I mentioned to you, the SEC and the DC Court of Appeals are evaluating
IBRD's compliance on the capital
market after the Legal Department falsified evidence in the World Bank
Administrative Tribunal,
and the WBAT Executive Secretary was promoted two weeks after admitting the
tampered evidence.
GAO also has issues with the IBRD's failure to comply with 2005 appropriations
legislation
granting access of lawyers and accountants to external arbitration when making
protected disclosures to the
IBRD's Audit Committee and the World Bank's oversight committees in US Congress.
Please acknowledge receipt of this email and all five attachments.
Best,
Karen Hudes
_
From: Karen Hudes
To: dshontz@kpmg.com
Sent: Mon, Apr 26, 2010 2:28 pm
Dear Mr. Shontz,
The attached summons in connection with the IBRD's violation of US securities

laws was served on the International Bank for Reconstruction and
Development on April 22, 2010. Other court filings are at clearviewconnects.com,
login 30795, password 72ef7b4. I have also complained to the District of Columbia
Court of Appeals about violations by IBRD's legal department of professional
ethics. Correspondence with the Assistant General Counsel of the SEC, Counsel to the
Inspector General of the SEC, and DC Bar Counsel on this matter is attached for your
information as well.
I also forward an email to the EC's representatives in Washington, in an attempt

to settle this matter prior to the recently concluded Spring meetings of the World Bank.
The chairs of the World Bank Board's Audit, Governance, and Ethics Committees, the
PCAOB, as well as
US Congressional Committees responsible for oversight of the World Bank, are also
apprised.
As soon as I have completed filing the Affidavit of Service with the US District
Court for the District of Maryland, I will give you a call.
Sincerely,
Karen Hudes
8
From: Karen Hudes
To: info@capitolprocess.com
Sent: Wed, Apr 21, 2010 1:21 pm
Subject: Re: Job ID 10-037584
Mr. Green has refused to accept service of the summons and complaint. Please print out
the above pdf file and serve the World Bank at 1818 H St. NW. In case they refuse to
accept the summons,
just leave the papers near the individual who refuses to accept the papers and put a copy
of this email on top. http://openjurist.org/703/f2d/1305/novak-v-world-bank
Best,
Karen
From: Green, Jeffrey T. <jgreen@Sidley.com>
To: Karen Hudes
Cc: Richardson, Rebecca
<rebecca.richardson@sidley.com>http://openjurist.org/703/f2d/1305/novak-v-world-
bank
Sent: Wed, Apr 21, 2010 12:15 pm
Subject: RE: Sarbanes-Oxley Complaint against the International Bank for
Dear Ms. Hudes –
Thank you for the e-mail below. I will await further information.
Please find attached a letter from me regarding the Amended Complaint.
Best, J.
Jeffrey T Green
Sidley Austin LLP
1501 K St NW
Washington, DC
20005-1401
202-736-8291 (desk)
jgreen@sidley.com
From: Karen Hudes

To: jgreen@Sidley.com
Cc: rebecca.richardson@sidley.com
Sent: Wed, Apr 21, 2010 2:15 pm
Subject: Re: Update on Possible Settlement of World Bank Sarbanes-Oxley Case
Dear Mr. Green,
9
Thank you for your email. If the Board is not prepared to resolve matters in time
for the Spring meetings, I would be very happy to meet you and/or Ms. Richardson in
the Hay Adams (16th & H) at 11:30 on Sunday morning.
Sincerely,
Karen Hudes
From: Karen Hudes
To: vlassia.vassikeri@ec.europa.eu; despina.manos@ec.europa.eu;
geraldine.dufort@ec.europa.eu
Sent: Wed, Apr 21, 2010 1:59 pm
Subject: World Bank
Dear Geraldine, Vlassia and Despina,
I wanted to update the European Commission with regard to the issues discussed
during my meeting of July 1, 2009 with Vlassia and Despina. Since then, the World
Bank has refused to comply with an investigation of the Government Accountability
Office requested by the US Congess that was prompted by the attached disclosure to the
US Senate Committee on Foreign Relations. Senator Lugar is now demanding
reforms before approving a capital increase. The link to Senator Lugar's report is:
http://thecable.foreignpolicy.com/posts/2010/03/10/lugar_no_more_money_for_dev
elopment_banks_until_reform
I requested the Securities and Exchange Commission to remove the World Bank's
exemption from reporting and registration requirements, and complained about ethics
violations at the World Bank to Bar Counsel in the DC Court of Appeals. Last Friday the
Assistant General Counsel of the SEC requested Bar Counsel to inform him about the
ethics violations which I reported. (See attached letter to the DC Board on Professional
Responsibility). I have sued the International Bank for Reconstruction and
Development in Federal Court for the Southern District of Maryland for its violations
of US securities laws.
I have requested the Chairs of the World Bank Board Audit, Governance, and Ethics
Committees to suggest a counterpart to settle this lawsuit in order to protect the World
Bank from reputational risk. I hope that the EC will be able to assist in prompt
resolution of this matter.
Sincerely,
Karen
10
From: Karen Hudes
To: SullivanMB@SEC.GOV; karrt@sec.gov
Cc: Tips@pcaobus.org; heidi_crebo-rediker@foreign.senate.gov;
joe.onek@mail.house.gov; Daniel.McGlinchey@mail.house.gov;
Chris_Armstrong@finance-rep.senate.gov; cory_gill@foreign.senate.gov;
dgetter@crs.loc.gov; thomas_caballero@legal.senate.gov; nbjorksten@crs.loc.gov;
EHontz@cipe.org; ianball@ifac.org
Sent: Fri, Apr 16, 2010 9:34 am
Subject: Governance Crisis at the World Bank
Dear Ms. Sullivan and Mr. Karr,
The International Bank for Reconstruction and Development has rebuffed the
efforts of Congress and the Government Accountability Office to resolve compliance
issues of the International Bank for Reconstruction and Development which I reported
to them (see attached). After IBRD refused to reinstate me, on April 9, 2010 I served the
summons and complaint on IBRD for the Sarbanes-Oxley case in the United States
District Court for the District of Maryland. On April 12, 2010 I met with Mr. Gene
Shipp, Jr., Bar Counsel of the District of Columbia, concerning ethics violations at
IBRD. I provided the documentation in my case to KPMG, external auditors
commissioned by the IBRD's Audit Committee, at www.clearviewconnects.com log-in
ID 30795, password 72ef7b4.
I would appreciate knowing what the SEC has decided to do with the issues I have
raised, what the grounds were for the decision, and what the time frame is going
forward.
Sincerely,
Karen Hudes
_

Sent: Monday, April 19, 2010 9:50 AM
To: Green, Jeffrey T.
Subject: Re: Sarbanes-Oxley Complaint against the International Bank for
Dear Mr. Green,
I refer to our telephone conversation last week. The Board has been waiting for a
long time for the US to acknowledge the internal control deficiencies at the IBRD. I
would appreciate your cooperation in settling the Sarbanes-Oxley litigation at this time
in order to minimize the reputational risk to the IBRD.
Best,
Karen Hudes
11
----Original Message-----
To: Karen Hudes
Sent: Mon, Apr 26, 2010 11:04 am
Subject: RE: The World Bank's Internal Controls April 25th 11:30 am Concorde Room
Hay Adams
Thank you.
David B. Shontz
---------- Forwarded message ----------
From: Karen Hudes <>
Date: Sun, Feb 12, 2012 at 8:44 AM
Subject: Re: Compliance of International Bank for Reconstruction and Development
To: lael.brainard@do.treas.gov
Dear Ms. Brainard,

Domestic and international oversight agencies of the World Bank community
including the securities markets, international organizations, academics, civil society
and legislatures are all assisting in bringing Mr. Zoellick to account, as per the attached.
Sincerely,
Karen Hudes
Law Offices of Karen Hudes

Date: Sun, Feb 12, 2012 at 8:29 AM
Subject: Fwd: Compliance of International Bank for Reconstruction and Development
To: micah@adbusters.org

Date: Fri, Feb 10, 2012 at 5:07 AM
Subject: Re: Compliance of International Bank for Reconstruction and Development
To: sharon.raj@fitchratings.com, rebecca.mirza@fitchratings.com
Dear Ms. Raj,
I spoke with Ms. Kerry-Ann Kirby, who referred me to you concerning the
compliance of the International Bank for Reconstruction and Development. KPMG's
audit of the IBRD's internal control over financial reporting, requested by the IBRD's
Audit Committee, did not comply with generally accepted audit principles, including
Standard No. 5 of the Public Company Accounting Oversight Board. This matter is also
12
before the International Organization of Supreme Audit Standards, the UK Parliament,
and the US Congress.
http://www.huffingtonpost.com/social/Karen_Hudes/china-financial-
reform_n_1191600_127701808.html
In the attached email, I have informed the head of staff of the Vice President of the
European Commission that I requested IBRD's Committee on Governance and
Administrative Matters of the Board of Executive Directors to bring the IBRD into
compliance at its upcoming meeting next week. The chronology of internal control
lapses was presented to the European Parliament's Committee on Budgetary Control in
testimony on May 25, 2011.
Please confirm receipt of this email and attachments. I would be happy to answer any
further questions.
Sincerely,
Karen Hudes

Date: Thu, Feb 9, 2012 at 4:27 PM
Subject: Re: Rule of Law
To: henrik.hololei@ec.europa.eu
The Committee on Governance and Administrative Matters of the World Bank's

Board of Executive Directors is meeting next week to discuss this paper:
http://www-
wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/04/07/0003
56161_20110407011348/Rendered/PDF/607990CR0SU2011OFFICIAL0USE0ONLY19
1.pdf
From: karenhudes@hotmail.com
To: s-duff@dfid.gov.uk; ps-mason@dfid.gov.uk; wouter.biesterbos@minbuza.nl;
stefanie.teggemann@gtz.de; annika.calov@kfw.de; michael.krempin@gtz.de;
shaukat.hassan@acdi-cida.gc.ca; julia.thompson@acdi-cida.gc.ca;
infoausaid@ausaid.gov.au; sheena.graham@ausaid.gov.au
Subject: FW: Compliance of the IBRD
http://thecable.foreignpolicy.com/posts/2012/08/09/who_will_get_top_jobs_in_a_r
13
omney_administration#.UCPKU0cthsQ.email
Date: Fri, 10 Aug 2012 06:31:14 -0400
Over a year ago, I wrote the u4 governments on the attached problem of corruption. I
have asked the Chair of the Development Committee, Marek Belka, to put my case in the
US Court of Appeals into mediation. I am hoping that you will see to it that this
happens. Otherwise, there is a greater than 90% risk of a currency war. I have been
trying to end the cover-up at the World Bank for years.
Best,
Karen Hudes
begin_of_the_skype_highlighting FREE end_of_the_skype_highlighting
From: Karen Hudes

Sent: Thursday, June 30, 2011 10:56 AM
To: s-duff@dfid.gov.uk; ps-
mason@dfid.gov.uk; wouter.biesterbos@minbuza.nl; stefanie.teggemann@gtz.de; anni
ka.calov@kfw.de; Michael.Krempin@gtz.de; shaukat.hassan@acdi-
cida.gc.ca; julia.thompson@acdi-
cida.gc.ca; infoausaid@ausaid.gov.au; Sheena.Graham@ausaid.gov.au
Cc: Fylkesnes Gunvor Knag
Subject: Fwd: Compliance of the International Bank for Reconstruction and
Development on International Securities Markets
I am forwarding you my request that the u4 governments assist in efforts to strengthen

the dialogue with the US Congress on the functioning of the Bretton Woods institutions.
I am also forwarding you information on outstanding compliance issues of the
International Bank for Reconstruction and Development together with my background
paper for the European Parliament's Committee on Budgetary Control.
Over a year ago, I wrote the u4 governments on the attached problem of corruption.
I have asked the Chair of the Development Committee, Marek Belka, to put my case in
the US Court of Appeals into mediation. I am hoping that you will see to it that this
happens. Otherwise, there is a greater than 90% risk of a currency war. The US system
is too corrupt to cure itself, as you can see from the attached. I have been writing the
CFR to ask them to end the cover-up for years. The rest of the US press (and the world's
press for that matter) are refusing to report the story too.
Best,
Karen Hudes
To: tjohnson@cfr.org
14
Date: Fri, 10 Aug 2012 06:14:34 -0400
Dear Ms. Johnson,

I see that you are deputy editor at CFR and that you traveled to India to
report on a story about Muslims. The World Bank's members have been
supporting me in my efforts to fight this corruption every step of the way.
The whole issue is now in front of the World Bank's Development
Committee. I traveled to India in February: India is one of the countries
who has been helping me the most.
I am forwarding an email which sets out clearly where things stand.
Either we end the cover-up in the US first, or the rest of the world will do it
for us. CFR can help.
Best,KarenLaw Offices of Karen Hudeswww.kahudes.net
http://blogs.cfr.org/campaign-2012/2012/08/09/midday-update-zoellick-
to-lead-romney-defense-foreign-policy-transition/#comment-1849
Posted by Karen HudesAugust 10, 2012 at 5:49 am
Your comment is awaiting moderation.
Gayle Putrich has missed entirely what it meant when Romney picked Robert Zoellick as
his national security transition planning chief. Putrich thinks Zoellick’s “foreign policy
realism” is what makes Zoellick’s pick so controversial. The real issue is corruption. I am
a lawyer/economist who worked 20 years in the World Bank’s legal department. Zoellick
fired me in retaliation the month after I reported corruption at the World Bank to the
Senate Committee on Foreign Relations. The US Congress, UK Parliament and EU
Parliament have joined forces in a battle to fight the corruption that Zoellick promoted
at the World Bank. I should also add: the 3 credit rating agencies are looking on as this
saga unfolds. We will all suffer if the cover-up does not end.
I am suing the World Bank, its auditor KPMG, the lawyer hired to investigate my
whistleblower claims, and the Bank’s medical insurance administrator (who broke
medical confidentiality laws by disclosing my doctors’ names to the World Bank’s
medical department), in the DC Court of Appeals for the District of Columbia.
To: john.hardy@usaexport.org; jmcpherson@naag.org; wijnand.marchal@minbuza.nl;
piotr.nowinakonopka@ep.europa.eu; info.eco@economie.fgov.be; j.hooper@frc.org.uk;
ianball@ifac.org; direction@cssf.lu; intosai@rechnungshof.gv.at; fcc@fsa.gov.uk;
clare.wells@europarl.europa.eu; elizabeth.noel@fco.gov.uk
Date: Thu, 9 Aug 2012 10:43:12 -0400
Mr. Zoellick refused to end the corruption that is now squarely before the International
Bank for Reconstruction and Development's 3 credit rating agencies. The Romney
campaign's anxiety to distance themselves from Zoellick (as witnessed in this current
article) is not enough to solve the problem, though, of IBRD's compliance on the capital
markets after Zoellick's mismanagement there. Why would Romney want advice from
someone whose spectacular corruption just left so many insoluble problems in his
15
wake? See my previous comment at:
http://thecable.foreignpolicy.com/posts/2012/08/08/zoellick_pick_roils_romney_ca
mpaign#.UCM2-nrrsiM.email
To: john.hardy@usaexport.org; jmcpherson@naag.org
CC: wijnand.marchal@minbuza.nl; piotr.nowinakonopka@ep.europa.eu;
info.eco@economie.fgov.be; j.hooper@frc.org.uk; ianball@ifac.org; direction@cssf.lu;
intosai@rechnungshof.gv.at; fcc@fsa.gov.uk; clare.wells@europarl.europa.eu;
elizabeth.noel@fco.gov.uk; tom.scholar@hmtreasury.gsi.gov.uk
Subject: Re: Compliance of the IBRD
Date: Thu, 9 Aug 2012 08:51:03 -0400
Dear Messrs. Hardy and McPherson,
Mr. Zoellick refused to end the corruption that is now squarely before the Board of
Governors of the IMF and World Bank. It is clear that the world will experience a
currency war unless there is an end to the lawlessness that I have so meticulously
documented these past ten years and which has brought the International Bank for
Reconstruction and Development out of compliance on the world's capital markets.
We seem to have a sequencing problem. I am leaving it in your capable hands what

happens first.
Best,
Karen
To: jonathan_davidson@bennet.senate.gov; roger_low@bennet.senate.gov
Subject: FW:
Date: Thu, 9 Aug 2012 08:35:14 -0400
From: Brian_Appel@bennet.senate.gov
To: karenhudes@hotmail.com
Subject: Automatic reply:
Date: Thu, 9 Aug 2012 11:42:47 +0000
I will be out of the office from Wednesday, August 8 through Friday August 10.
I will check e-mail on a periodic basis.
16
To: brian_appel@bennet.senate.gov
Subject:
Date: Thu, 9 Aug 2012 07:42:44 -0400
Dear Brian,
I wanted to update Senator Bennet on what is happening on my lawsuit. I heard back

that the World Bank's Development Committee is following this closely, and are hoping
for the US to resolve this. I have contacted the Democratic Party to ask whether we
couldn't expose the cover-up and corruption now that Robert Zoellick is national
security adviser for the Romney campaign. It would be an elegant solution.
Here's my comment:
The US will have no national security if Robert Zoellick plays any role. Zoellick was not
offered a second term at the World Bank for good reason. The reason is that Zoellick lost
the Gentlemen's Agreement for the US to appoint the president of the World Bank
unilaterally. Fed up with corruption at the World Bank, on April 25, 2010 the 187
members rescinded the Gentlemen's Agreement for the US to name the World Bank
president http://www.imf.org/external/np/cm/2010/042510.htm, The US Congress
was also fed up with Zoellick's corruption. The requirements in US 2012
Appropriations legislation are in Section 7082 of H.R. 2055:
http://www.whistleblower.org/storage/documents/whistleblowerlanguageinHR2055.p
df Zoellick's last blooper: blowing up NATO. Our closest allies are now trying to help --
the UK Parliament has posted my
testimony:http://www.publications.parliament.uk/pa/cm201213/cmselect/cmintdev/w
ritev/402/contents.htm The press' coverage of this debacle is less than stellar.
http://www.forbes.com/sites/richardbehar/2012/06/27/world-bank-spins-out-of-
control-corruption-dysfunction-await-new-president/ (hit expand all comments
twice) Where does FP stand? www.kahudes.net
Best,
Karen
From: Appel, Brian (Bennet) [mailto:Brian_Appel@bennet.senate.gov]

Sent: Tuesday, July 24, 2012 3:35 PM
To: Karen Hudes
Subject: Follow up on Behalf of Jonathan Davidson
Karen:
Jonathan Davidson asked me to follow up with you regarding the World Bank. I would
be happy to talk with you about the issue at your convenience.
17
Brian
From: pwilson@glenecovapor.com
Subject: RE: Karen Hudes v. Aetna Life Insurance Company, et al "Appellant/Petitioner
Brief Filed" (1:10-cv-01444-JEB)
Date: Wed, 8 Aug 2012 11:54:12 -0400
Good luck to ya.
From: Karen Hudes [mailto:karenhudes@hotmail.com]

Sent: Wednesday, August 08, 2012 11:00 AM
To: Jacek Kugler; g.smrkolj@uva.nl
Subject: Karen Hudes v. Aetna Life Insurance Company, et al "Appellant/Petitioner
On Monday I filed my appeal in the Court of Appeals, DC Circuit.
From: Karen Hudes
To: SullivanMB@SEC.GOV; karrt@sec.gov
Cc: Tips@pcaobus.org; heidi_crebo-rediker@foreign.senate.gov;
joe.onek@mail.house.gov; Daniel.McGlinchey@mail.house.gov;
Chris_Armstrong@finance-rep.senate.gov; cory_gill@foreign.senate.gov;
dgetter@crs.loc.gov; thomas_caballero@legal.senate.gov; nbjorksten@crs.loc.gov;
EHontz@cipe.org; ianball@ifac.org
Sent: Fri, Apr 16, 2010 9:34 am
Subject: Governance Crisis at the World Bank
Dear Ms. Sullivan and Mr. Karr,
The International Bank for Reconstruction and Development has rebuffed the
efforts of Congress and the Government Accountability Office to resolve compliance
issues of the International Bank for Reconstruction and Development which I reported
to them (see attached). After IBRD refused to reinstate me, on April 9, 2010 I served the
summons and complaint on IBRD for the Sarbanes-Oxley case in the United States
District Court for the District of Maryland. On April 12, 2010 I met with Mr. Gene
Shipp, Jr., Bar Counsel of the District of Columbia, concerning ethics violations at
IBRD. I provided the documentation in my case to KPMG, external auditors
commissioned by the IBRD's Audit Committee, at www.clearviewconnects.com log-in
ID 30795, password 72ef7b4.
18
I would appreciate knowing what the SEC has decided to do with the issues I have
raised, what the grounds were for the decision, and what the time frame is going
forward.
Sincerely,
Karen Hudes
_

Sent: Monday, April 19, 2010 9:50 AM
To: Green, Jeffrey T.
Subject: Re: Sarbanes-Oxley Complaint against the International Bank for
Dear Mr. Green,
I refer to our telephone conversation last week. The Board has been waiting for a
long time for the US to acknowledge the internal control deficiencies at the IBRD. I
would appreciate your cooperation in settling the Sarbanes-Oxley litigation at this time
in order to minimize the reputational risk to the IBRD.
Best,
Karen Hudes
From: Karen Hudes [mailto:karenhudes@hotmail.com]

Sent: Wednesday, August 08, 2012 11:00 AM
To: Jacek Kugler; g.smrkolj@uva.nl
Subject: Karen Hudes v. Aetna Life Insurance Company, et al "Appellant/Petitioner
On Monday I filed my appeal in the Court of Appeals, DC Circuit.
19
Karen has 3 files to share with you on SkyDrive. To view them, click the links below.
appeal117brief.pdf
appeal117addendum.pdf
appeal117appendix.pdf
Download all
Date: Mon, 6 Aug 2012 17:50:35 -0400

From: ecfnoticing@cadc.uscourts.gov
Subject: KAREN HUDES v. INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT, KPMG LLP, AETNA LIFE INSURANCE COMPANY, AND MARK E.
SCHREIBER, US Court of Appeals Case Number 11-7109
***NOTE TO PUBLIC ACCESS USERS*** Judicial Conference of the United

States policy permits attorneys of record and parties in a case (including
pro se litigants) to receive one free electronic copy of all documents filed
electronically, if receipt is required by law or directed by the filer. PACER
access fees apply to all other users. To avoid later charges, download a copy
of each document during this first viewing.
United States Court of Appeals for District of Columbia Circuit
Amended 08/06/2012 17:50:35: Notice of Docket Activity
The following transaction was entered on 08/06/2012 at 5:04:56 PM EDT and filed on
08/06/2012
Case Name: Karen Hudes v. Aetna Life Insurance Company, et al

Case Number: 11-7109
Document(s): Document(s)
Docket Text:
APPELLANT BRIEF [1387774] filed by Karen Hudes [Service Date: 08/06/2012 ]
Length of Brief: 6959 words. [11-7109] (Hudes, Karen)
20
Notice will be electronically mailed to:
Bryan D. Bolton: bbolton@fblaw.com, mreed@fblaw.com, crobertson@fblaw.com

Mr. Michael Patrick
Cunningham: mcunningham@fblaw.com, mreed@fblaw.com, crobertson@fblaw.com
Marc B. Dorfman: mdorfman@foley.com, cursin@foley.com
Mr. Jeffrey T.
Green: jgreen@sidley.com, kblackstone@sidley.com, desprit.smith@sidley.com, hingra
m@sidley.com
Ms. Karen Hudes: karenhudes@hotmail.com
Mr. David S. Petron: dpetron@sidley.com
Stanley James Reed: sjreed@lerchearly.com
To: jtuohey@globe.com
Subject: Re: UK Preserves Rule of Law -- Saves Transatlantic Alliance
Date: Sun, 15 Jul 2012 10:34:32 -0400
I am a Yale Law school-educated lawyer and economist who worked in the World
Bank's legal department for 20 years. In 2007 Robert Zoellick, then President of the
World Bank, fired me in retaliation after I reported a governance crisis at the World
Bank to the Senate Committee on Foreign Relations.
www.kahudes.net
http://www.forbes.com/sites/richardbehar/2012/06/27/world-bank-spins-out-of-
control-corruption-dysfunction-await-new-president/
Mr. Behar has left out how the Bush Administration attempted to prevent Paul
Wolfowitz’ resignation from the presidency of the World Bank by threatening to reveal
sensitive information about the Executive Directors on the Board. Herman Wijffels, the
Dutch Executive Director at the World Bank, led the Board’s inquiry into illegal pay
raises to Wolfowitz’ romantic interest, Shaha Riza. Riza, who worked at the World Bank
prior to Wolfowitz’ appointment, received a 35% raise just months after Wolfowitz
assumed the presidency of the World Bank.
Wijffels reported, “There was digging into my past in a shocking manner. In my case
there was nothing to find. Very clear efforts to disqualify my fellow Directors led to
consternation.” I am a Yale Law educated lawyer and University of Amsterdam educated
economist who worked in the World Bank’s legal department for 20 years. I reported to
the Senate Committee on Foreign Relations, then chaired by Vice President Joe Biden,
the risks to the reputation of the United States. Robert Zoellick fired me in retaliation in
2007.
I also reported the corrupt take-over of Philippines National Bank, the second largest
bank in the Philippines. Lucio Tan, a crony of then-President of the Philippines Joseph
Estrada, acquired stock owned by government employees in Philippines National Bank
in violation of Philippines securities laws. Tan owned Philippines Airlines, in default on
21
its loans from PNB. The government of the Philippines loaned $493 million to PNB after
PNB’s depositors made heavy withdrawals. $200 million from a World Bank loan and
$200 million from a Japanese loan was cancelled. Estrada was ultimately impeached,
and in 2007 an anti-corruption court in the Philippines required Estrada to refund graft
he had plundered.
The World Bank’s Country Director in the Philippines reassigned me when I asked him
to warn the Philippines’ government that the World Bank could not disburse its loan.
The World Bank’s Internal Audit Department refused to correct the satisfactory
evaluation of the World Bank’s supervision performance or the flawed report of the
Institutional Integrity Department to the Audit Committee of the Board of Executive
Directors.
The Audit Committee requested an inquiry into the Institutional Integrity Department.
The Paul Volcker Panel investigation into the Institutional Integrity Department was
discredited after “deliberate and substantial interference with this supposedly
independent commission” came to light.
http://www.commondreams.org/newswire/2010/04/06-3
The World Bank stonewalled four letters from Congress into my disclosures. The World
Bank also stonewalled a Government Accountability Office inquiry into transparency at
the World Bank requested by Senators Richard Lugar, Evan Bayh, and Patrick Leahy.
http://citizenoversight.com/pdf/blwb.pdf I warned the Joint Economic Committee an
accurate political science stakeholder analysis was predicting that without rule of law at
the World Bank the United States would lose the Gentlemen’s Agreement for the US to
appoint the president of the World Bank The analysis uses modern game theory to
simulate a bargaining process among stakeholders and is 90% accurate.
The 187 member countries of the World Bank rescinded the 66 year old Gentlemen’s
Agreement in 2010. http://www.imf.org/external/np/cm/2010/042510.htm The World
Bank’s Board of Executive Directors selected Dr. Kim as the World Bank’s president
from a field of three nominees, including Nigeria’s Finance Minister, Ngozi Okonjo
Iweala and Colombia’s former Finance Minister, Jose Antonio Ocampo.
The US Congress is requiring results that eliminate retaliation against whistleblowers in
the 2012 appropriations legislation for the World Bank capital increase. You can read
more about my whistleblower retaliation case in the US Court of Appeals, DC Circuit at
www.kahudes.net
https://twitter.com/KarenHudes,
https://www.facebook.com/karen.hudes.10/
On Tuesdays at 7:00 pm EST http://dctv.org/Live
22
https://www.youtube.com/user/KarenHudes
www.kahudes.net
interviews: https://s3.amazonaws.com/khudes/Bibliography1.pdf
23

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The World Bank Tokyo Office Telephone: (03) 3597 6650

Sunday, December 2, 2018

I am attaching my emails to and from accountants. These

From: Karen Hudes

Dear Jules and Ian,

Dear Mr. Shontz,

 my advice to the World Bank's Audit Committee about breaches in

David B. Shontz, Associate General Counsel

From: Karen Hudes [mailto:Karen Hudes]

Dear Mr. Shontz,

Thank you for your attention to this email.

David B. Shontz, Associate General Counsel

From: Karen Hudes [mailto:Karen Hudes]

Dear Mr. Shontz,

David B. Shontz, Associate General Counsel

From: Karen Hudes [mailto:Karen Hudes]

Dear Mr. Shontz,

Please acknowledge receipt of this email and all five attachments.

The attached summons in connection with the IBRD's violation of US securities

I also forward an email to the EC's representatives in Washington, in an attempt

Please find attached a letter from me regarding the Amended Complaint.

From: Karen Hudes

From: Karen Hudes [mailto:Karen Hudes]

Dear Mr. Green,

Dear Ms. Brainard,

---------- Forwarded message ----------

---------- Forwarded message ----------

---------- Forwarded message ----------

The Committee on Governance and Administrative Matters of the World Bank's

From: Karen Hudes

I am forwarding you my request that the u4 governments assist in efforts to strengthen

Dear Ms. Johnson,

Dear Messrs. Hardy and McPherson,

We seem to have a sequencing problem. I am leaving it in your capable hands what

I will check e-mail on a periodic basis.

I wanted to update Senator Bennet on what is happening on my lawsuit. I heard back

From: Appel, Brian (Bennet) [mailto:Brian_Appel@bennet.senate.gov]

Good luck to ya.

From: Karen Hudes [mailto:karenhudes@hotmail.com]

On Monday I filed my appeal in the Court of Appeals, DC Circuit.

From: Karen Hudes [mailto:Karen Hudes]

Dear Mr. Green,

From: Karen Hudes [mailto:karenhudes@hotmail.com]

On Monday I filed my appeal in the Court of Appeals, DC Circuit.

Date: Mon, 6 Aug 2012 17:50:35 -0400

***NOTE TO PUBLIC ACCESS USERS*** Judicial Conference of the United

United States Court of Appeals for District of Columbia Circuit

Amended 08/06/2012 17:50:35: Notice of Docket Activity

Case Name: Karen Hudes v. Aetna Life Insurance Company, et al

Bryan D. Bolton: bbolton@fblaw.com, mreed@fblaw.com, crobertson@fblaw.com

On Tuesdays at 7:00 pm EST http://dctv.org/Live

Potrebbero piacerti anche

NOTE TO PUBLIC ACCESS USERS Judicial Conference of the United