Seal of the U.S. Department of Justice

Based on What They Now Know, Where Do the Feds Go From Here in US v. Parlato?

By: J.J. O’Hara

[This is Part 15 of a series of articles that I am writing about the pending prosecution of Frank Parlato (Frank’s trial is scheduled to start on May 19th). As usual, readers are encouraged to ask questions – which I will endeavor to answer on a timely basis.

*****

Over the course of the past two months, I’ve been writing about different aspects of the pending U.S. v. Parlato Et Al criminal case.

Along the way, I’ve focused a good deal of attention on Anthony M. Bruce, the former Assistant U.S. Attorney for the Western District of New York (WDNY) – who, after promising to indict Frank, set about to do just that.

Anthony Bruce resigned after getting Frank Parlato indicted. Parlato, in turn, has accused Bruce of suborning perjury and fabricating evidence.

Before we move on to the next part of this strange and disturbing case, let’s pause to consider what options are currently available to the Feds in order to extricate themselves from the pile of shit that Bruce left behind for them to clean up.

*****

The Bronfman Connection

The problem began when Bruce decided to initiate an investigation into Frank’s business dealings with Clare and Sara Bronfman, the two Seagram’s heiresses who became involved in – and eventually became leaders in and the primary funders for – the NXIVM criminal enterprise.

 Clare and Sara Bronfman.

That investigation later expanded to include Frank’s business dealings with Larry Reger, a well-regarded developer in Niagara Falls, NY who had previously [before Frank got into the project] invested millions of dollars into what became known as the One Niagara Project.

Larry Reger invested millions in what became the One Niagara project – and may have lost it all had Frank Parlato not gotten involved. Parlato rescued the troubled property and turned it into a successful development.

The Bronfman-related part of the investigation came about when William F. Savino, a local attorney who had previously represented the two sisters in pursuing baseless claims against several other individuals who had been targeted as “enemies” by Keith Raniere, contacted Bruce about the Bronfmans’ business dealings with Frank.

Savino approached Bruce, a long-standing friend, sometime after he had already filed a civil lawsuit against Frank on behalf of the Bronfman sisters. Initiating a criminal complaint in order to advance a pending civil claim is not allowed in New York State – but that’s exactly what Savino did here.

Worse yet, the Bronfmans’ criminal complaint against Frank was premised on Clare Bronfman’s perjured testimony before a Buffalo grand jury.

And worst of all, both Savino and Bruce knew that Clare had perjured herself during her grand jury testimony – and did nothing about it.

Marie White’s portrayal of Anthony Bruce, William Savino, and Clare Bronfman. 

Indeed, had Clare not been indicted on unrelated matters in the Eastern District of New York (EDNY), I think federal law enforcement officials in the WDNY would have been quite content to continue prosecuting Frank for his alleged malfeasance against her and her sister, Clare’s perjury notwithstanding.

But just shortly before Clare was indicted, the WDNY sought – and obtained – a superseding indictment against Frank that removed all references to his business dealings with the Bronfman sisters.

Since then, Clare has been indicted and pleaded guilty to two federal felonies – and Sara has fled the country to avoid a similar outcome (Sara just recently fled her hiding place in France – and is now living in Portugal).

*****

The Reger Connection

As untoward as the Bronfman-related part of the investigation was, the Reger-related part was even worse.

That’s because Larry Reger never filed any sort of complaint against Frank.

On the contrary, Larry fought side-by-side with Frank against Shmuel Shmueli, a long-time conman who was trying to force them to give him a piece of the One Niagara Project (Shmueli filed ten different legal actions against Frank and Larry – and lost every one of them).

Shmuel Shmueli would raise money from overseas investors to fund his lawsuits – and then stiff the investors and attorneys he hired, pocketing the money he raised.  For Shmueli, it did not matter if he won or lost because he made his money by litigation funding. He lost every lawsuit against Parlato and Reger.

And despite numerous attempts on the part of Bruce to convince him that he had been duped by Frank, Larry Reger refused to assert any criminal claims against Frank (Reger also never initiated any civil claims against Frank).

During the course of Bruce’s investigation of Frank, Larry Reger died, never having once complained or sued Parlato. In fact, he objected to being called a victim by Bruce – and just two weeks before he died, he testified, under oath, that Parlato was a good partner to him.

Just the opposite of Bruce’s crazed allegation that Parlato had swindled him, Reger testified that Parlato had made him a great deal of money.

Happily for Bruce though and his work for the Orwellian named Department of Justice, Reger was dead.

Now, he could not testify that he wasn’t a victim.

Which allowed Bruce to alternatively claim that Reger did not know he was a victim – and that Reger did know he was a victim.

Bruce could say anything he wanted because Reger was dead and couldn’t dispute it.

So, when all was said and done, former AUSA Anthony M. Bruce had the FBI undertake a multi-year investigation of Frank based on the perjured testimony of Clare Bronfman – and the non-claims of the late Larry Reger.

Bruce had given his word that he would do everything he could to ensure that Frank was indicted.

And if nothing else, Bruce is a man of his word.

*****

Making a Mountain Out of Nothing

We often use the idiom “making a mountain of a molehill” to describe over-reactive, histrionic behavior where a person makes too much of a minor issue.

But Anthony Bruce’s actions in his pursuit of Frank Parlato went well beyond that.

He made a mountain out of absolutely nothing.

An ad regarding Anthony M. Bruce

But the cunning Mr. Bruce is not a stupid man.

For he knew that if he could get an investigation started – even one that was premised on a false allegation by the Bronfman sisters and no allegation by the late Larry Reger – he might be able to find a way to indict Frank.

Which is exactly what he did.

Based on the allegations of the Bronfman sisters and Shmuel Shmueli – all of whom just happened to be represented by Bruce’s friend and confidante, William F. Savino – Bruce was able to obtain numerous bank and business records concerning the One Niagara Project operations (Most of these were voluntarily turned over by Frank; others were given in response to subpoenas).

Here’s to you, Anthony Bruce. You, indeed, are a man of your word!

And even though those business records did not reveal any criminal activity, Bruce was able to slice-and-dice them into eighteen separate felony counts against Frank Parlato.

That’s what a devious mind – and the prosecutorial tactic known as “crime stacking” – can do in a situation like this.

By documenting the fact that Frank Parlato had established fifteen different business entities – and opened up fifty different bank accounts – over a 12-year period, Bruce was able to convince a grand jury that Frank had engaged in a variety of criminal activities.

Indeed, as of right now, Frank is facing the following charges:
• One (1) count of “Conspiracy to Impede, Obstruct and Impair the IRS and to Commit Wire Fraud”;
• Seven (7) counts of “Wire Fraud”; and
• Ten (10) counts of “Engaging in Monetary Transactions in Property Derived From Specified Unlawful Activity”.

*****

Frank Blew up Bruce’s Plans

Bruce’s plan was fairly simple: indict Frank on as many charges as possible – and then get him to take a plea deal to much-reduced charges.

That’s how the federal criminal justice system usually works (97% of federal defendants end up taking plea deals rather than go to trial).

But Frank didn’t react the way that Bruce thought he would.

Instead of copping a plea in order to avoid the uncertainty of a trial – and the possibility of a very long prison sentence – Frank insisted on going to trial.

That means that in about three months, the Feds are going to have to present all the “evidence” they have of Frank’s wrongdoing.

Fortunately for Frank, there is no evidence to show that he committed any crimes – and plenty of evidence to explain why he had established multiple companies and opened up multiple bank accounts (Although he was provided with all this evidence back in March 2015, Bruce chose to ignore it).

So, instead of introducing documents and other evidence that will prove – beyond a reasonable doubt – that Frank engaged in criminal activities, the Feds will have to convince the 12 jurors that the only reason why someone would own multiple companies – and have multiple bank accounts – is because they were engaged in some sort of criminal activity.

Unfortunately for the Feds, every company in question was legitimately set up with its own Federal Employer Identification Number (FEIN) – and a legitimate business address. And every bank account in question was set up under Frank’s Social Security Number and his home address.

Not exactly a lot of subterfuge or treachery here.

In fact, none at all.

*****

So, What Can the Feds Do to Get Out of This Mess?

At this point, the Feds have to think long and hard whether they want to try and convict a man who they know is innocent because if they decide to proceed to trial, they run the very real risk of Frank being acquitted on all charges.

And that sort of outcome can be deadly for career-minded prosecutors.

Especially in a place like the WDNY – where losing like that doesn’t happen very often (In Federal Fiscal Year 2018, the WDNY only lost one case that went to trial).

So, what else can the Feds do?

Well, the easiest – and most honorable – option would be for them to dismiss all the pending charges against Frank. While somewhat rare, such dismissals happen on a regular basis (The WDNY did that 8 times in FFY 2018 – out of a total of 376 cases).

Dismissing the charges in Frank’s case might be even easier than usual because the people who were in charge when Frank was first indicted – AUSA Anthony M. Bruce and U.S. Attorney William J. Hochul, Jr. – both resigned from their offices in 2016.

Bruce is now “Of Counsel” to the Andreozzi Bluestein LLP law firm.

And Hochul – the husband of New York State Lt. Governor Kathy Hochul – now serves as Senior Vice President, General Counsel and Secretary for Delaware North, an international company that specializes in hospitality and food service [and ironically a company that Frank often criticized in his newspaper, The Niagara Falls Reporter].

It would be easy enough for the current U.S. Attorney for the WDNY, to simply announce that after thoroughly reviewing the matter, he had decided to dismiss all the pending charges against Frank “in the interest of justice”.

No bad mark for losing a case – and really no taint at all for the WDNY.

But if the case goes to trial and Frank is acquitted, the onus will fall entirely on the WDNY.

So, at this stage, the WDNY has at least two very good reasons to drop all the charges against Frank – and to move on to bigger and better cases.

First, it would be the right thing to do – and the just thing to do.

And second, it would eliminate the possibility of Frank being found “Not Guilty” of all the pending trumped-up charges against him.

The only question now is whether the WDNY will do what it should do.

******************************************************************************
Previous posts in this series can be accessed at:
Part 1: The Buffalo News Raises Questions About Frank Parlato’s Case – More Detailed Analysis Needed

Part 2: The Convoluted History of U.S. v. Parlato Began With Bronfman Sisters

Part 3: The Federal Case Against Frank Parlato – a Prosecution in Search of a Crime

Part 4: What Are the Charges in U.S. v. Parlato — and What Do They Mean?

Part 5: The Conman Cometh – Schmuel Schmueli – Who, Combined With the Bronfmans, Led to Parlato’s Indictment

Part 6: Fate Brings Conman Shmuel Shmueli Into Frank Parlato’s Life

Part 7: Why Frank Parlato Established Several Companies and Multiple Bank Accounts

Part 8: Why Did Anthony Bruce’s Boss Not Intervene in the Case of the U.S. v. Parlato? – Governor Cuomo’s Lt Governor Was Married to the US Attorney at the Time!

Part 9: The Persecution of Frank Parlato: What Have We Learned so Far

Part 10: Where’s the Beef? Feds Will Try to Convict Parlato on Insinuations Rather Than Facts

Part 11: Feds Refused to Accept Proof of Frank Parlato’s Innocence – Pushed Ahead With Indictment

Part 12: Frank Parlato’s Attorneys Refuted Allegations but That Didn’t Stop Anthony M. Bruce From Moving Forward

Part 13: F—k the Facts – Full Steam Ahead With False Indictment of Frank Parlato – With AUSA Tony Bruce Suborning Perjury

Part 14: Parlato Case: For Anthony M. Bruce, Complexity = Criminality


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J.J. O'Hara

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  • “It would be easy enough for the current U.S. Attorney for the WDNY, to simply announce that after thoroughly reviewing the matter, he had decided to dismiss all the pending charges against Frank “in the interest of justice”.
    * * * * *
    Interesting that a California prosecutor just announced that his office was dropping a high profile sexual assault case. Imagine the grief that his office will receive.

    But, as he says, a prosecutor’s duty is to do justice, not garner convictions. You learn that on your first day in criminal law.

    https://www.courthousenews.com/judge-considers-dismissing-rape-charges-against-reality-show-couple/

  • Anyone who wishes to contact the Office of the U.S. Attorney for the Western District of New York will have to call them at (716) 843-5700 – or write to them at 138 Delaware Ave Buffalo, NY 14202. According to their website, they don’t accept emails.

  • What is the physical and email addresses of the appropriate WDNY prosecutors? We should flood that office with this link: https://frankreport.com/category/frank-parlato/ and express our outrage over this apparent miscarriage of justice. If the DOJ goes forward with this prosecution, they better have solid evidence that has not been presented on this website.

    Public pressure matters, but only if We The People apply it.

      • What’s your problem, Johnson? Are you too lazy or too stupid to look up the information yourself?

        PS/My only problem with Trump and his border wall is that he built it on the Southern border of Texas rather than the Northern border.

        • Hey Joe, it is not President Trump’s border wall. It is the American peoples. Although Johnson is an idiot, the wall should also be built around San Fransisco and other liberal shitholes. Too many leaving California and coming to Texas.

          • Another anonymous coward calling me an idiot. LOL

            I wouldn’t waste the money building a wall around San Francisco. Just let them die from various diseases, shovel the crap off the streets, and move back in.

        • My problem is that you’re too big of a coward to show up on my radio/podcast show, just like NiceGuy.

          PS/It isn’t Trump’s border wall, it is America’s border wall. I know Texas is the source of your incarceration, but that’s because you broke the FEDERAL laws. Get over it, O’Hara. The wall, that is. You’ll be one of the few going TOWARDS Mexico. LOL

        • Joe-

          I predict, if you go on Scott Johnson’s radio show [it’s a podcast] it will be the lowest point in your life; even lower than being caught watching porn on an international flight.

  • Yea, it is ironic that Parlato thinks those with the democrat derangement syndrome are the real villains. The irony is if the democrats would have stolen the election in 2016, Parlato would have been cooked. The DOJ under Clinton would have put their fuckin boot so hard on his throat he may have been arkancided before he could take one shit in jail.

    • I did not say that those with Democrat Derangement Syndrome are the real villains. I merely said that it would be better if we could stop being deranged and try to persuade one another by logic rather than through hatred and denigration. I do know that the Democrats in New York were the supporters of my bogus indictment and had Clinton won, I do not think Raniere would have been prosecuted.

      • Frank, he knows that. I know the commenter. He’s just busting your balls on your silly comment yesterday. You also need to realize that no amount of logic would work on a delusional being like Flowers, among some others here.

        • It is what it is
          ???
          Why put words in my mouth? My comment had absolutely nothing to do with Democrats or Republicans. I had only pointed out that Trumps remarks sounded simplistic and kind of goofy – I mean why bother stating that the internet is responsible for some bad things? Lol.

          And how would you know who wrote a comment here unless you wrote it yourself?

          But, the one thing that I think is obvious here is that Frank and Joe are trying to paint Frank’s indictment as some type of political payback and part of a conspiracy theory, but, as of yet, I see no evidence to support their theories.

          • When you insult Trump, you insult everybody who voted for him. Just like when Pelosi ripped up his speech. If a Republican had done that to Barry, it would have been a national emergency in the press, racist, etc. Why NOT state the internet is responsible for some bad things? Amway and MLM scams do it all the time, as prospects are instructed not to look up information on the MLM online because there is a lot of garbage found there, to enable them to keep getting away with their lies. And it works, at least with enough people to keep the scams afloat.

          • Lady, you see no evidence because it goes against your delusional agenda. As for conspiracy theories, you are the queen and a couple of your leftist goombas can match you. Yes, the anonymous commenter knows me. There are a few of us who check in here. Can’t help that you and little Scootie have no friends.

          • Flowers: Are you reading the same posts that I’m writing? Where, pray tell, did I suggest that Frank’s indictment was part of a “conspiracy theory”? And while it’s true that politics may have played a small role in Frank getting indicted, that action was – at least in my opinion – primarily based on good old corruption and greed.

          • You can’t reason with Flowers. It appears she’s come to this blog with her own agenda to further but the longer she continues writing here the more convinced I’ve become she suffers from Wernicke-Korsakoff Syndrome (also known as wet brain)

          • Seriously, Joe? A good conspiracy theorist (such as Roger Stone and his pals Jones, Levant & Kinsella) doesn’t plainly state that it is a conspiracy. They just present one-sided evidence and propaganda that points people in the direction they want them to follow.
            🙄

          • Flowers: Per you definition of what a conspiracy theorist does – i.e., “They just present one-sided evidence and propaganda that points people in the direction they want them to follow” – every prosecutor and every defense attorney would qualify. So would every politician – and every member of every debate team. Perhaps you need to narrow your definition just a tad…

          • That’s a good answer Joe, and a bit of a surprise, considering that you’re a lawyer yourself.
            I guess I would say that the difference with a conspiracy theorist is they will fabricate a narrative that they know is not true…which hopefully is not the case with a defence lawyer or a prosecutor, (though we all know that they have been known to fabricate as well.)

            The point I was trying to make is that some articles posted here, and many of the comments, keep trying to link NXIVM to the Democrats and then link the Democrats to some sort of “pizza gate” conspiracy. And now there are comments claiming that Frank is being unfairly treated by Democrats.

            Frank might be treated unfairly, but I haven’t seen any evidence yet to convince me its because of his persecution of Keith and NXIVM.

          • Yes, clown, the commenter knows me and you are clueless as to who peruses this blog. The anonymous commenter was absolutely right about flowers. She and logic have never met.

          • Scott, they actually could know each other because these trolls work together as a network. But most of them also write under several names and correspond to themselves, so it’s likely that Trees also writes as many of the other trolls who attack me.

            BTW, if we are not allowed to insult Trump, then we should not be allowed to insult Justin Trudeau, or any other politician. Fair is fair.

          • Yes, everything is a conspiracy. Against you. LOL

            I don’t have a problem with insulting Trump, because the Libtards are on much shakier ground. I have a problem with Frank chastising the return fire rather than the original shot.

          • No conspiracy, flower girl. There are a few of us who work together for a certain well-known employer. We don’t conspire against you at all. Just tired of your negative comments and then bitching when you get called on it. You are like a bad neighbor who lets her dog shit in others yards and then bitches up a storm when it is dumped back on your porch.

          • Scott
            Are the trolls actually validating my theories that they are really paid trolls? Lol!
            To whoever pays these nitwit trolls: please note- you are paying them too much!

          • Scott
            I shouldn’t have to point out to you that one person writing comments under various names and pretending to be multiple people is not a conspiracy.

            It’s just one criminal POS doing what criminals do…

            Hey “Trees”, I thought you were going to sue me. Hmmmm.

            P.S. I heard there were a lot of views on a certain person’s blog a few days ago. Know anything about that?

        • Hey Scootie, it looks like O’Hara already bitch slapped your worthless ass. Yes there are a few of us that comment here on occasion, that work for a well known Uncle. Sorry you are on mental disability and no longer capable of any worthwhile work.

        • Flowers has the unmitigated gall to state Joe is advancing a ‘conspiracy’ theory while, at the same time, asserting there are paid trolls writing comments on FR and stating there are commenters here who know her and are ‘criminals’ harassing her. And yet, she is unable to see just how ridiculous she sounds. This woman needs help and she needs it fast. IMO

          • The trolls just stated that they are paid trolls who communicate with each other. They are trolling themselves, I guess.

            Or rather the troll didnt want to admit that his earlier comment about knowing the other commenters didn’t really make sense, and so he decided he must be a paid troll!

          • Did you already forget your earlier comment?…
            “No conspiracy, flower girl. There are a few of us who work together for a certain well-known employer.”

            I still think these trolls are trolling themselves, but there has been research done that shows that internet trolls do work together to target and harass, so it could be true.
             

          • Are you just being deliberately obtuse or can you really not read and understand the words as presented, Flowers? No one has said they are paid trolls who write here. No one. A commenter said there are people who comment here who know one another because they work together. To me that means people talk about their interests at work so these people all have an interest on in reading and commenting on this blog. Then these friends discuss comments people make as well as commenting themselves. There’s nothing in what this commenter has said that leads me to think people are being paid to write comments here. There was no such admission but your comment, Flowers, serves to further illustrate your paranoia and how deeply you’ve sunk into your delusions. You need professional help.

          • I can read quite well, troll.
            I can also understand your gaslighting techniques….write a cryptic comment and then try to claim everyone who misinterprets your cryptic meaning must be delusional. Typical abusive narcissistic behaviour, employed by unemployed trolls everywhere.

  • Frank, I am definitely on your side and believe that the Feds have greatly overcharged you.

    I also believe that no jury will vote to convict you, as you have reasonable explanations for having multiple companies and bank accounts.

    …and like Joe said, every bank account & company you owned was registered in your own name and SSN — which is good circumstantial proof that your intent wasn’t to hide anything from the IRS or anybody else.

    I’m still not sure how the government will attempt to refute that argument in front of a jury.

    As an alternative example… In my opinion, Barb Bouchey and Keith Raniere acted together (for years) in a quest to hide Keith’s name and SSN from appearing on various bank accounts and trading accounts that Keith allegedly exerted control over. That’s far more suspicious than your own accounts, especially since Barb has never fully explained why she allowed Keith to secretly control trading accounts that hid his own SSN from the government, even though he was allegedly calling the shots (i.e., exerting ownership control from the shadows).

    I’m quite certain that the Feds will offer you a very lenient plea deal as the trial date gets close, but they’ll never drop the charges IMO.

    I just hope that you consider taking a lenient plea deal with no jail time, if it gets offered, rather than decide to roll the dice.

    But sadly, it sounds to me like you’d rather “fight” and let the chips fall where they may. There’s always some risk in that option — so I hope you’re not really that stubborn, if you get offered a ‘no jail time’ plea deal or something close to that.

  • Joe,
    Our nation has already spent three years of the Democrats investigating and persecuting President Trump and everyone associated with him.
    And to what purpose?
    To hinder the duly elected President in the performance of his duties.

    And the prosecutors of the DOJ have spent four years persecuting Frank Parlato, a man who was instrumental in bringing down the biggest criminal gang in Upstate New York.
    And to what purpose?
    To make the world safe for professional grifters like Shmueli and Raniere and the Bronfmans and the Salzmans and the rest of the NXIVM criminal conspiracy.

    • Shadow-

      You are such a partisan shill. You are no different than Rachel Maddow; except you are on a different team. Congrats!

      Ken Starr’s law firm build the US government 70 million dollars for the White Water investigation and it took 6 years.

      https://www.newsweek.com/trump-mueller-costs-clinton-starr-953160?amp=1

      In the end, the president of the United States was caught lying about a blow job under oath; which is, in fact, a crime.
      Trump wasn’t so stupid as to get tricked into swearing under oath and then forced to answer questions.

      I like Donald and he is one clever son of a bitch.

  • I would like to thank Joe for these articles giving insight into Frank’s upcoming trial. It makes my blood run cold that things have progressed to this level and I can’t imagine what a toll having to defend against this has taken on Frank. I’m wondering what the odds are that the DOJ will finally withdraw the charges before the May date?

    • Although dismissals are very rare with respect to federal criminal cases, it is still quite possible that will happen here. Mostly that’s because no one who currently works in the Office of the U.S. Attorney for the Western District of New York had anything to do with this case – which means they can drop all the charges “in the interest of justice” and not get blamed for that outcome. But if they take the case to trial and lose, then that loss is entirely on the current U.S. Attorney and his underlings.

      • Sorry dickhead, but if they were gonna dismiss all charges they’d have already done it.

        Not gonna happen, sir. Sounds like you’re still letting expired macks fuck with your brain.

        They will likely make some lenient plea deals up until the trial date — right up until jury selection — in a game of ‘chicken’ to see who blinks first.

        • Bangkok- You are correct!

          Frank will he offered a plea bargain; the plea deal will be a small fraction of the prison sentence Frank currently faces if he goes to trial.

          And the plea deal system is completely insane. The federal government threatens defendants with 10, 15, and 20 year prison sentences. The same type of prison sentences that should only be used for murderers; all done to extract confessions from people like Frank.

          It’s a very evil system.

Frank Parlato Investigates

Frank Parlato Investigates

Frank Parlato is an investigative journalist.

His work has been cited in hundreds of news outlets, like The New York Times, The Daily Mail, VICE News, CBS News, Fox News, New York Post, New York Daily News, Oxygen, Rolling Stone, People Magazine, The Sun, The Times of London, CBS Inside Edition, among many, many others in all five continents.

His work helping take down NXIVM is featured in books like “Captive” by Catherine Oxenberg; “Scarred” by Sarah Edmonson; “The Program” by Toni Natalie, and “NXIVM. La secta que sedujo al poder en México” by Juan Alberto Vasquez.

Parlato has been featured prominently on HBO’s documentary “The Vow” and acted as lead investigator and coordinating producer for Investigation Discovery’s “The Lost Women of NXIVM.”

Parlato will be featured in an upcoming episode of American Greed.

If the whole world stands against you sword in hand, would you still dare to do what you think is right?

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