Superdollar - WikiHQ

thumb|upright=1.2|A counterfeit Series 1974 [[United States one-hundred-dollar bill|one-hundred-dollar bill on display at the British Museum. After being detected, the bill was overprinted with a rubber stamp to indicate that it is a fake.]]

A superdollar (also known as a superbill or supernote) is a very high quality counterfeit version of a United States one hundred-dollar bill, alleged by the U.S. government to have been made by unknown organizations or governments. In 2011, government sources stated that these counterfeit bills were in "worldwide circulation" from the late 1980s until at least July 2000 in an extradition court case. Over 350,000 counterfeit $100 bills were produced by British criminals, led by Anatasios Arnaouti, who was arrested in 2002.

A new $100 bill design intended to thwart counterfeiting, incorporating a "3D security ribbon", color-shifting numerals and drawings, and microprinting, entered circulation in 2013.

Production

Supernotes are said to be made with the highest quality of ink printed on a cotton/linen blend, and are designed to recreate the various security features of United States currency, such as the red and blue security fibers, the security thread, and the watermark. Moreover, they are printed using an intaglio printing process or with engraved plates, the same process used by the Bureau of Engraving and Printing (BEP) of the U.S. government for legitimate notes. In most counterfeiting, offset printing or color inkjet and laser printing are most common means of making counterfeit money.

Experts who have studied supernotes extensively and examined them alongside genuine bills point out that there are many different varieties of supernotes. In 2006 the "family" of fraudulent bills was thought to have 19 members.

On the front of the supernote, in the "N" in "UNITED STATES", a slash can be seen to the right of the diagonal and the right ascender of the letter; there is none on the genuine note. Other differences in vignetting and in the defining lines of the top ornament in Independence Hall have been observed. Journalist Klaus Bender and others have speculated that the counterfeiters introduced these differences to be able to distinguish their product from the original, but there is no obvious way to confirm this.

Arrests of United States distributors

In two sting operations running from 2002 to 2005, dubbed "Operation Smoking Dragon" and "Operation Royal Charm", United States agents arrested at least 87 people on charges that included smuggling superdollars. About $4.5 million in counterfeit currency was seized, much in $100 bills. No definitive origin for the counterfeit $100 bills was determined.

Confirmed sources

British criminals

In 2005, Anatasios Arnaouti and four others were convicted of conspiracy to make counterfeit currency in Manchester, England. They were arrested in 2002 after an operation that involved the U.S. Secret Service. The counterfeit currency recovered included $3.5 million worth of $100 bills and £2.5 million of £10 notes, which Bank of England experts said were of excellent quality. The police stated that "The potential to undermine the economy of the UK and US was very significant."

The printer admitted to making 350,000 $100 bills over 18 months. The gang was using equipment capable of printing £1 million per day, and claimed to produce $500,000 in fake dollars a day. The counterfeiting operation was running for over two years.

Possible sources

North Korea

It has been said that North Korea has passed off superdollars in various countries. The counterfeit bills also circulate both within North Korea and around its border with China. There is, however, some doubt about the reliability of North Korean defectors' claims, These witnesses claimed that the factory where the notes are printed is located in the city of Pyongsong and is part of Room 39.

One defector had taken the notes to experts in the South Korean intelligence agency, who did not believe that they were fakes. The San Francisco Chronicle interviewed a North Korean chemist who described the operation; insisting on anonymity, he spoke about the technical details of the process as well as the distribution method, which he said was through North Korean diplomats and international crime syndicates.

The U.S. government has theorized that the bills were spread in two ways:

North Korean diplomats almost always travel through Moscow on their way to other destinations. At the Embassy of North Korea in Moscow, they receive dollars for their expenses. According to the claims of one defector, forgeries are intermingled with real dollars in about a 1 to 1 ratio. He said that most of the diplomats themselves do not know that they are being given counterfeits, and claimed that it is possible to purchase a $100 bill for US$50–70 directly from North Korean agents, and sometimes as low as $10–20 in bulk purchases.
The alleged chief of staff of the Official Irish Republican Army, Seán Garland, was followed and seen traveling to Moscow and visiting the North Korean embassy along with some ex-KGB officers. Allegedly, Garland would then, with the help of some associate couriers, move this money to the Irish capital of Dublin and to Birmingham, England, where the notes would be exchanged for pounds or authentic dollars. His alleged scheme, involving several international crime syndicates and transactions worth millions of dollars, was uncovered after a tip-off. Garland was arrested in Belfast, Northern Ireland, but fled south to the Republic of Ireland after being released for medical leave. On 21 December 2011, the Irish High Court dismissed the US application for Garland's extradition, as the alleged offence took place in Ireland and was therefore not subject to extradition. The case was referred to the Director of Public Prosecutions to consider prosecution in Ireland.

Since 2004, the United States has frequently called for pressure against North Korea in an attempt to end the alleged distribution of supernotes. It has investigated the Bank of China, Banco Delta Asia, and Seng Heng Bank. The U.S. eventually prohibited Americans from banking with Banco Delta Asia. However, an audit of the bank disputed U.S. allegations and indicated that the only time Banco Delta Asia had knowingly handled counterfeit money was in 1994 when it discovered and turned over $10,000 in counterfeit $100 bills to local authorities. The United States has threatened North Korea with sanctions over its alleged involvement with the supernotes, though it said those sanctions would be a separate issue from the nuclear sanctions.

South Korea has attempted to play a middle role, encouraging all parties to reach an acceptable conclusion without animosity. South Korea prefers to place blame on North Korean organizations rather than the government, believing that this change in rhetoric can mollify North Korea and be conducive to a resumption of the six-party talks.

On February 2, 2006, banks in Japan voluntarily enforced sanctions on Banco Delta Asia identical to those imposed by the United States.

In 2008, a McClatchy Newspapers article reported that the United States no longer explicitly accused the North Korean government of producing supernotes, and that the Swiss Bundeskriminalpolizei, which regularly searches for counterfeit currency, doubted that North Korea produced supernotes.

CIA

The CIA has been accused of printing and using counterfeit notes to fund off-the-books foreign operations. Klaus Bender, an author of works on counterfeiting, states that the notes are of such high quality that they could only be produced by a government agency such as the CIA.

References

External links

"U.S. accuses North Korea of conspiracy to counterfeit", San Francisco Chronicle, December 18, 2005.
"What Are Supernotes?", Slate, August 23, 2005.
"What is a superdollar?", BBC News, June 19, 2004.
Superdollar — transcript of BBC TV show Panorama
Counterfeit U.S. Currency Abroad: Issues and U.S. Deterrence Efforts, General Accounting Office publication, February 26, 1996.