Anarchist

John Galton Wanted Libertarian Paradise in ‘Anarchapulco.’ He Got Bullets Instead.

By Guest Post February 13, 2019

by Kelly Weill

John Galton and his girlfriend Lily Forester had finally made it. On a March 2017 evening, the young American couple sat on their balcony above Acapulco, Mexico, counting their blessings. They’d recently moved into a big house on a mountainside and were eyeing an ambitious push into the artisanal bong business.

Galton and Forester were anarcho-capitalists who slipped U.S. drug charges worth 25 years in prison, they said in a YouTube video that night. They’d hopped the border and resettled in what Galton called one of the world’s “pockets of freedom,” a community billed as a libertarian paradise.

Almost two years later, Galton was murdered.

Last week, gunmen burst into the couple’s mountaintop home, killing Galton on the spot, and seriously wounding one of the couple’s friends. (Forester survived, badly shaken.) The killers are presumed to be a drug cartel; Mexican authorities say Galton grew marijuana at the home.

Galton was part of a small community of fellow anarcho-capitalists formed by Jeff Berwick, who promised a drug-friendly haven and hosts the annual “Anarchapulco” festival. Berwick says Galton and Forester should’ve known what they were getting into.

“They started up a competing conference to Anarchapulco, called Anarchaforko and John continued to be involved in one way or another with the production or sale of plants,” Berwick told The Daily Beast in an email. “Unfortunately, that is the one thing that is very dangerous to do in Mexico as the drug cartels will attack anyone they see as competition and that appears to have happened to John.”

Anarchapulco will go on as scheduled next week and might be even bigger due to the murder, Berwick says.

“We’ve received nothing but love from attendees and expect this will not affect attendance in a negative way at all,” he said. “In fact, it could increase attendance as more people are exposed to our message this week due to media coverage of this tragic event.”

Berwick is a Canada-born anarcho-capitalist podcaster, who moved to Acapulco part-time in 2009 and became known for a hard-partying lifestyle. In 2015, he launched Anarchapulco, a festival for anarcho-capitalists, some of whom relocated to Acapulco full-time.

“Every year, as people would visit, they would be attracted to the freedom, weather and culture of Acapulco and many people would stay or move there,” Berwick told The Daily Beast. “This was not anything planned and happened quite organically. But there are likely in the neighborhood of dozens or hundreds of voluntaryists who now live in Acapulco.”

A former member of the community told The Daily Beast the community’s membership fluctuates, but is likely around 50 to 60.

This year’s Feb. 14-17 Anarchapulco promises a nudist pool, psychedelics, sex counseling, and sessions on radical homeschooling—as well as big-name Republican figures like former presidential candidate Ron Paul and Fox News personality Judge Andrew Napolitano.

The conference is located in a ritzy Acapulco hotel. Attendees will have shelled out $545 for tickets, with options to pay an additional $495 for an “investment summit,” $255 for the “Infinite Man” summit with a pickup artist, $140 for “De-Mystifying the Occult,” and $250 each for various drug ceremonies like “Jaguar Vision,” an hour-long DMT experience.

Anarcho-capitalists (“ancaps”) believe in dismantling the state and allowing unchecked capitalism to govern the world in its place. Even within the small anarchist world, ancaps are fringe. Anarchists typically describe their movement as inherently anti-capitalist. Their philosophy describes anarchy as the rejection of hierarchical structures, which they say capitalism enforces. Anarcho-capitalists, meanwhile, see money as a liberating force. They promote a variety of libertarian causes like using cryptocurrency, legalizing all drugs, and privatizing all public institutions like courts and roads. The movement reveres the novelist Ayn Rand, whose work outlines a philosophy of radical selfishness and individualism. Her best-known character, an idealized capitalist named John Galt, appears to have inspired Galton’s name.

Berwick is an unofficial leader in this movement that eschews leaders. And Acapulco is only his latest attempt at building an ideal ancap society.

A native Canadian, Berwick made his fortune by founding and selling the stock promotion website Stockhouse, and by investing in bitcoin before the cryptocurrency boomed in value. Then his ventures took a more experimental turn.

After moving to Acapulco in 2009, Berwick became something of an ancap pied piper, selling passports and real estate to non-Mexican anarchists who wanted to live in the city, according to a 2014 Wired profile. Today, Berwick’s real estate business appears dead. Its website, which advertised “paradise,” now redirects to the homepage for Anarchapulco.

“Jeff was always saying publicly that Acapulco’s not dangerous, that you can do anything, nothing will happen to you. People believed him.” — ‘Mike’

Berwick’s passport company, TDV Passports, also appears to have stumbled. The site used to sell “professional facilitation services for those seeking to establish citizenship in countries abroad.” In practical terms, that meant putting clients in touch with people who could fast-track immigration and citizenship applications. Various versions of the site charged from $12,000 for the Dominican Republic citizenship process to $40,000 in “legal fees” for U.S. citizenship. The company appears frequently on scam-reporting websites, where alleged TDV Passports customers complained of spending tens of thousands of dollars without ever obtaining immigration documents.

“Mike,” who spoke to The Daily Beast on the condition of anonymity, is a former Berwick colleague who lived in Berwick’s Acapulco community for two years.

“The first Anarcapulco was funded by this passport scheme,” Mike said. “Essentially Jeff was selling Mexican passports to Middle Eastern people. I met Egyptians and a lot of Syrians… He promised to provide passports. I’ve heard of one or two who got them before the scheme collapsed.”

Berwick did not respond to The Daily Beast’s comment on TDV Passports.

The Creature from Galt's Gulch — The Creature from Galt’s Gulch

While running the passport business, Berwick was also eyeing anarcho-capitalist utopias in other Latin American countries. He tried to set up a free trade zone in Honduras, Wired reported. When that plan failed, Berwick poured his efforts into Galt’s Gulch Chile, an anarcho-capitalist farming utopia in Chile’s deserts.

Investors dumped millions into the project, which promised to be an ideal society of freedom-loving individuals. Instead, would-be Gulch residents found themselves part-owners of a mismanaged patch of desert. When investors visited the site in 2014 to pick out the plots where their homes and farms would go, they learned that the area had not been zoned for their habitation. One ancap investor defected from the project with a scathing blog post, accusing the Galt’s Gulch team of failing to secure water rights for the desert community. The project, now an outright failure, is the subject of lawsuits in Chile. Berwick, who is not a defendant in the lawsuits, claims he was duped by one of his colleagues on the project.

With Galt’s Gulch drying up, Berwick returned his focus to Acapulco, launching the first Anarchapulco festival in 2015. The event, a celebration of cryptocurrency, alternative health, and post-government politics, was a success, both in attendance and in establishing a year-round ancap presence in the city.

According to the forthcoming documentary “Stateless,” Berwick’s first festival “was designed to attract other ‘ancaps,’ libertarians, and crypto-anarchists to Acapulco, with hopes of encouraging many to become residents of the region and build a new community of government-evaders.”

Read the Whole Article

Do you find these posts helpful and informative? Please CLICK HERE to help keep us going!

Admin

Investors File Criminal Charges Against Kenneth Johnson and Pamela Del Real, FBI and IRS Notified

By Terence Gillespie June 10, 2015

As promised by investor Lt. Col. Thomas Baker, the forensic reconstruction of Galt’s Gulch Chile has been completed and was hand-delivered to the FBI and the IRS on June 8th, 2015. Informed by the reconstruction, investor David McLeod filed criminal charges against Kenneth Johnson and Pamela Del Real in Chile (Docket number RUC 4710-2015) on May 20th. More US civil suits against Johnson are likely to follow.

On a phone call with Cathy Cuthbert, she described the forensic recontruction as a wellspring of previously unknown facts and details about what actually transpired around GGC. Timelines, Contracts, Accounting, Wire Transfers, Corporate reports, Recorded conversations between Johnson and investors, Videos, Credit reports, etc. showing Johnson to be at the heart of the problems surrounding GGC he has blamed on others. In other words, despite Johnson’s claims of working for the investors as a developer the reconstruction shows that the “service” Johnson has been providing them is similar to that which the bull provides the cow.

Readers of this GGC series will find it no surprise that Johnson used investor funds to spin a complex web of deceit involving multiple entities, off-shore trusts, multiple bank accounts, share swaps with Mario Del Real and others, inflated prices, ridiculous late fees, absurdly negotiated prices, etc. all while using corporate bank accounts like a personal checking account.

It’s tempting to leave Jeff Berwick out of discussions about GGC now that he’s so publicly apologized. Unfortunately, his involvement in cutting Cobin and German out, starting a different entity into which to take title (IGGSA) and trying to get the New Zealand trust and offshore structures in place is quite evident in the reconstruction documents. There’s little doubt Ken Johnson was the instigator of the most serious problems with GGC, and continues to make all things worse with his presence and current behavior. However, to say Berwick wasn’t right there at the beginning is to not tell the story, correctly, at all. As mentioned in Part 3 my hope is that Berwick will externalize his contrite heart into some modest assistance to ongoing recovery efforts or investors in extreme need. With the introduction of these new charges, with more to follow, the publicity surrounding the aftermath of GGC is not going away, anytime soon.

Note: The criminal charges filed by David McLeod, and some documents of the forensic reconstruction I was able to coax from the recovery team, have been added to the free E-book, “The Creature from Galt’s Gulch”. I will continue to add such elements to the book as I receive them and within the boundaries of preserving the privacy of the investors.

Justice Provided by the People Involved

As described by Cathy Cuthbert and Thomas Baker, the breadth and depth of the forensic reconstruction they’ve put together is quite impressive. It’s not only a meticulous investigation and gathering of documents but they’ve formatted the whole thing into a package that makes it accessible to outside parties.

I’m not sure what may have transpired between Tom and Ken but the USMC motto of “No better friend, no worse enemy” might echo in Johnson’s mind for some time to come. That is, if Johnson is able to comprehend what has just happened to him. The agencies he’s just been reported to will hound him for the next decade. Half of that decade will be spent defending himself against the criminal charges that were filed against him in Chile on May 20th, by David McLeod. And, there’s more to come. A rather obvious tip to Johnson would be: The next time Tom makes an offer of either “Friend” or “Enemy” . . . go with the former choice. Who knows? Maybe the recovery team would still let Johnson wiggle out of his fraud if he’d just hand over the land the investors paid for.

The FBI white collar crime fraud division will find that most of the investigative, forensic accounting, and reconstructive work has been done and hand-delivered to them by the recovery team. With so much work already complete perhaps the agency will bump the case to the top of their case-load so they may stand in front of their logo at a news conference and receive some good publicity.

The Del Real Factor

Johnson is solely responsible for inviting a local Chilean, Mario Del Real, into GGC affairs. And yet, investors have been made to suffer Johnson’s endless complaining about problems he’s had with Mario and his daughter, Pamela. That’s because Johnson performed a bizarre GGC stock swap with Mario hoping to make big money on the value of water in an Andes Water company called Rio Colorado. By the time the smoke had cleared Mario owned most of IGGSA and his daughter was the general manager of the company! In other words, Johnson was no longer the dominant share holder of GGC and had lost all control over the entity that holds the land. What great “Development” work, Ken!

(To understand more about this failed deal see Chapter 7, “The Rio Colorado/GGC Share Swap”, in the GGC E-book.)

If you’ve read my “Stolen Car Metaphor” at the end of Part 7 you know my take that Johnson’s epic fail with the Del Real share swap is merely the lamentations of a thief who bungled and lost the proceeds of a previous theft. The fact that Johnson’s audience for these lamentations are the victims of the first theft is exactly the kind of behavior I find consistent with Dr. Robert Hare’s psychopathy checklist.

Any deal Johnson made with stolen shares of stock can, and should be, overturned. Therefore, whether the Del Reals colluded with Johnson, or are merely his victims, is a matter for a judge to decide (Yes, there is no longer any way to resolve GGC disputes without involving state agencies, unfortunately). Pamela Del Real’s resume (She’s now the general manager for IGGSA) shows substantial accounting expertise. Such expertise will make it impossible for her to plead ignorance if there was any foul-play on the Del Reals part.

Johnson’s Latest Ploy, Revealed

Johnson has now revealed his latest ploy and what’s behind his re-occupation of the GGC hacienda and grounds. And, surprise, surprise, it’s a variation on his usual … lies mixed with just enough truth to confuse and divide his listeners against themselves while holding out a carrot and stick for those who either cooperate or resist.

More specifically, Johnson is trying to confuse and divide investors against lead investor Josh Kirley hoping they’ll put pressure on Josh to relent in his legal actions which have locked up Johnson’s sale and pillage of IGGSA assets. He also wants the investors to help him get rid of his “Del Real” problem. The carrot Johnson offers is the same old title to land he’s been promising investors, and not delivering, for the past two years. The stick is his continued presence and purported counter-attacks on investors who “continue to attack him”. For those not familiar with Johnson-speak, the word “attack” describes the actions of anyone who points out to Johnson another of his own broken promises.

If only the investors will help him convince Kirley to relent, and help him get rid of the Del Reals, then Johnson can deliver, at long last, the coveted Titles to actual land the investors have been pestering him about, all this time.

E-mail Between Host and Parasite

A recent e-mail exchange between Josh Kirley (The host) and Ken Johnson (The parasite) is an excellent illustration of what actually went wrong with GGC. It’s also an excellent example of what happens when “The creature” is confronted with truth.

My thanks to Josh Kirley for making this e-mail exchange available:

On Thu, May 28, 2015 at 12:27 PM, Josh Kirley <joshkirley@gmail.com> wrote:

“Ken,

For two years, you keep sending out the same emails. Always full of juicy drama, promising the release of more information in the future. This behavior is unprofessional. It inspires no confidence. Why can’t you just do your job?Try building something. Try living up to your responsibilities. Produce something. Be accountable. If you are GGC’s Minister of Propaganda, who is the Project Manager? Your accusations are baseless and defy all logic.

Tell me if you can refute the accuracy of the following facts. I swear to their order and authenticity.

1) You are wholly responsible for bringing the del Reals into this nightmare.

2) You pleaded with me to give 1 to 2.5 million dollars to Mario del Real for his Rio Colorado Project. You personally vouched for Mario, insisting the Rio Colorado deal was a “No Brainer” and a “Homerun”

3) I told you that I had my suspicions about del Real and would get back to you after performing some due diligence.

4) Once I told you that I was not willing to put money into a second Chilean investment, you totally reversed course.

5) You refused to provide me with del Real’s Ruta number, or even his full name, intentionally stonewalling my attempts to research his background.

6) You told an entire room full of defrauded investors at the second festival that your deal with del Real was a “totally separate” matter between you and him.

7) You told all of us that your alliance with del Real was “none of our business” and would have no impact on our contracts.

8) When I offered to pay, out of my own pocket, to have del Real looked into for you, you refused my help, saying that you feared if I looked into del Real, he might “get spooked” and walk away from your deal.

9) Weeks later, you came back to me, begging for a million dollars. You said that you were double crossed by del Real and you needed me to buy back the shares that you gave to him.

10) When I would not bail you out, you predictably changed your characterization of my relationship to the project from savior to saboteur.

I’m sorry if I cannot respond to each of your lying emails. But, I have to give priority to my day job. I suggest you do the same. Maybe start by paying employees, repaying loans, and living up to the contracts you signed.

Josh Kirley”

The Parasite Responds

“Josh,

As you know, you are lying about most all that you discuss. There are communications between you, Monica Wehrhahn, Ken Carpenter, Alison Sherman, the Del Reals and more. Do you think that those just disappear because you are now pitching your false storyline to yet another news outlet? This has always seemed to be a publicity stunt for you, just as GGC always have been for Jeff Berwick.”

Johnson then goes on a bizarre rant about Jeff Berwick and BitcoinATM, Wire Transfers, Cafayate, Argentina (If you can believe it) and ends with:

“We are working on completing what Mr. Aguirre was unable to complete, or was unwilling to complete. We are working to fix the $1m+ damages that those labeling themselves “rescuers” of GGC have inflicted upon the farm, buildings and property. We don’t spend our time pitching a false story line for our own publicity, as Mr. Berwick and yourself seem to focus on quite a lot.

Ken”

Notice that Johnson does not dispute, nor even address, any of Kirley’s questions or statements. This is the way e-mail “Exchanges” and “Dialogues” go with Johnson. For readers who may have wondered . . . “Why don’t they just ask Johnson if [Insert simple question here] the above exchange with Josh Kirley is your example. Josh speaks the pure truth and asks sincere questions and, in response, Johnson doesn’t respond, at all.

The last paragraph is classic Johnson-speak. For readers who don’t understand the dialect his e-mails usually end with a payoff like this if you know how to read Johnson-speak. That is, you take all accusations as a literal description of what Johnson, himself, has done or is doing. In his last paragraph, therefore, we learn that Johnson has caused more than a million dollars of damage and is pitching false story lines for his own publicity.

Johnson’s Assaults

I’ve spoken with two people who were physically assaulted by Ken Johnson. The first was a young man Johnson tried to push around (Mentally and physically) during Johnson’s employment with The Dollar Vigilante. This young man would not tolerate Johnson’s nonsense and was the first person to speak up to Berwick about his suspicions about Johnson poisonous behavior. If Berwick had listened it’s anyone’s guess how Galt’s Gulch Chile might have played out without the involvement of Ken Johnson.

The second assault was that of a 70-year-old Salesman that worked for GGC who didn’t fare so well in the “Encounter”. Sandy “Clarence” Sandfort was grabbed by the lapels and thrown over a couch by Johnson when he learned that Sandy was about the leave Chile after all of Johnson’s promises had remained unfulfilled. Sandy was severely bruised and Johnson had almost managed to break a few of Sandy’s ribs. He was so shaken up by Johnson’s assault that Berwick had to fly in the next day and negotiate an NDA and payoff to keep Sandy quiet about the assault. Johnson later broke the terms of that NDA by talking about the assault with a third-party. Hence, Sandy’s retelling of the assault to me.

and Taunting . . .

Tatiana Moroz, who worked for Ken Johnson and wrote the GGC theme song, shares her experiences with GGC and with sociopaths in the liberty movement. Most of what involves GGC is in the first 25 minutes of the video, but, the ladies (With Julia Tourianski, BraveTheWorld.com, and Gigi Bowman, gigibowman.com) go on to tell other fascinating stories around the theme.

https://www.youtube.com/watch?v=KqQW5a4dJMk

Contrast the story Tatiana tells in the above video with the excitement she started out with and you’ll get a feeling for the roller coaster ride that was GGC. Tatiana perfectly captures the cognitive dissonance felt by most who’ve followed the promise, and then the reality, of GGC in the hands of Ken Johnson.

Favorite excerpts:

“This nonsense [Sociopaths in the Liberty Movement] is disgusting and ridiculous … and what’s gonna happen, here, is that people are going to leave and they’re not going to want anything to do with it (True Liberty) and all we’re going to be left with is the dirtbags who think this kind of behavior is ok. … And I’m sick and tired of the people that are trying to call attention to the sociopathic behavior within our own movement getting trashed.”

Tatiana’s right, of course. Natural law doesn’t evaporate around people who wish to retain and use their liberties. If anything, we must be more mindful of universal human truths because we are the people exploring the boundaries of liberty. A tolerance for lies, manipulation, sexual assault, and broken contracts is not “What’s up!” in Liberty. Anyone claiming that such tolerance is “Cool” is not a libertarian. They’re just another asshole in disguise.

John Cobin Interview

I had the pleasure of interviewing John Cobin about GGC for 1.5 hours, last week. The interview was mostly for my E-book about GGC. However, of interest, here, is the remarkable consistency of Dr. Cobin’s story with everything he’s said from the very beginning. Cobin is abundantly forthcoming about every meeting, document, e-mail and conversation he’s had with respect to GGC. My reaction to the interview was to tell him that it was a pleasure to speak with someone involved in GGC that looks better and better with each discovered and documented fact about the project.

Cobin said the impression he got from Jeff Berwick and Ken Johnson was that, they alone, might be able to supply the funding for GGC. He had no idea that they would, almost immediately, take his extensive research and information about Chile and GGC and cut him out of the deal. Although he concurs with the possible psychopathy of Johnson he puts Berwick in the same category in terms of the way they defrauded him. And yet, I had the impression that, even now, he would be forgiving of Berwick if approached in some meaningful way to make restitution.

Cobin said Johnson came after him, very agressively, in a libel suit in Chile. Guess what happened when the court date arrived? Johnson was a no-show! I won’t compare a libel suit with a podcast debate, but, I’m becoming quite familiar with Johnson’s cowardice in the face of someone determined to tell the truth. So far, Johnson’s been a no-show on two podcasts about GGC that he, himself, dared me to participate in.

For those interested in Chile I highly recommend the interview James and Johnathan conducted with Dr. Cobin on Monday over at Borderless. Cobin proves himself to be THE reliable source for all of Chile and much of the rest of the “Expat” world, as well. Cobin’s book, “Life in Chile” greatly increased the effectiveness of my 21-day country-vetting trip to Chile in 2012. I look forward to reading his latest book, “Living in Chile” when I can come up for air over the summer.

GGC Theatre

Johnson has been roaming around the property making absurd videos in an attempt to document the damage done by the recovery team. Perhaps the investors share my hope that Johnson continue making these videos as they are helpful in documenting what Johnson, himself, has done.

One of the things Johnson harps on in the videos are the “Damages” done by the recovery team causing a poor yield from the wells. In fact, such poor yields were caused by Johnson’s complete ignorance and inept handling of the well work around the property. Despite the pleadings of the local workers Johnson put Manuel Hermosillo in charge of the wells and the work was terribly bungled. And yet, somehow, the investors end up blamed, yet again, for Johnson’s incompetence. Such GGC Theatre might be a useful prop to help Johnson influence the Chilean locals who have no idea what’s going on with GGC. To those who’ve read the first thing about GGC, however, they are just that much more documentation of Johnson’s failings.

Message to local Chileans:

Johnson’s accusations of others are a reliable confession of his own failings. There is truth in many of the disasters he documents but your messenger is the culprit, not the victim. Johnson’s “Investment” into GGC remains at zero while 76-investors and buyers have given $10.45 million dollars for the purchase of everything you see associated with GGC. 72 of the investors have been begging Johnson to leave for over a year.

What happens next?

First, most of the predictions made in Part 6 seem to be coming true. That includes Johnson hinting that he wants to sell water rights, again. Happily, he’s unable to do so with the current injunctions in place.

Johnson has some time while the ocean water recedes in preparation for a tsunami of new legal problems.

Some think Johnson will stick it out to the end because his claim to be “Working for” the investors is his only defense against the legal actions that have been filed against him. But, Johnson also claims he controls or owns everything (Vacillating between claims of control or ownership) depending on his audience and the phases of GGC. How could someone who owns everything be an employee? How could a trustee (Controls everything) claim to be a trustee of beneficiaries who have been begging him to leave for the past year?

Perhaps Chile, and the local populace of Curacavi, will no longer tolerate Johnson as the criminal charges pile on. If he’s made to flee then we may see more pictures of his backpacks of stolen money while he’s on the run. I think he still has a Paraguayan passport from the passport scandal he was conducting at TDV. Still, all these charges filed with state agencies will haunt him wherever he goes. As of today, Johnson has put a digital data noose around his own neck that will follow him around the globe.

Business

GGC, Part 6 — Johnson Re-Occupies Galt’s Gulch

By Terence Gillespie May 2, 2015

I’ve spent the last two days responding on the comment section of an article written by Rebeca Morla at the Panama Post. Though I find the article represents mostly Johnson’s point of view I sympathize with any journalist under deadline having to come up to speed on the Galt’s Gulch Chile project. I was informed by a comment on Doug Casey’s International Man forum that Rebeca used this series to prepare her article. I look forward to more articles from her and the post in the future. Also, James Guzman followed up with a brief article on GGC, as well. The only thing I might change about Guzman’s article is his reference to the rescue team’s entrance to the property, last October, as an “armed capture”. That probably comes from Berwick’s article referring to it as a “SWAT Raid”. My understanding is that there were no guns and no violence involved in the recovery team’s entrance to the property. I make that distinction because it’s important to libertarians and because Johnson’s recent reoccupation did, in fact, involve the use of a firearm. As I’ve pointed out in previous articles, Johnson is no libertarian and should not be confused, in any way, with the principles of Ayn Rand’s “Atlas Shrugged” from which the name Galt’s Gulch is derived.

With Mario Del Real already in control of “El Penon” (GGC Parcel #1 of 2) farm workers working on “El Lepe” (The second and largest parcel of land that comprises Galt’s Gulch Chile and it’s offices, hacienda and lemon trees) reported, last week, that, under threat of violence by three hired thugs (One concealing a gun), Ken Johnson has taken back occupation of “El Lepe”. Below is the narrative from farm managers Renzo and Ken Carpenter as sent out to investors on Wednesday, April 22nd.

Friday, April 17th at the farm:

Farm worker, Jaime Olivares, while cutting espino trees saw Manuel Hermosilla walking inside the property. When confronted Hermosilla said that he would kill Farm Manager Diego.
The Farm Managers made a complaint with the Curacaví police against Hermosilla for entering the property and making his death threat.

Monday, April 20th, at the farm:

At 8:30 pm, Ian Thornton and three thugs with a pistol, arrived at the gate and said to Diego and Coto, “Open the gate. We are coming in, one way or another.” Diego let them in.
Ian confiscated their telephones.
Coto, from a hiding place, was able to communicate with Renzo who was in town on farm business. He alerted Renzo as to what was happening.
Renzo phoned the police. By the time the cops arrived, Ian had put new chains on the gate so Renzo and the cops could not enter the property.
Renzo called Ian from the gate. Thornton said to him, “You have two options, cooperate or go to jail for the things you sold.”
Former developer Johnson arrived around 11 pm, inspected the house, and left with the IMac Desktop computer.
Thornton offered Renzo work if he would cooperate.
Thornton said that no employee would be paid this week, but would be paid starting next week.

Tuesday, April 21st, Morning, Santiago:

Former developer Johnson arrived with two police officers at Kenny’s apartment in Santiago.
Police showed proof of GGC ownership of the Jeep to Kenny.
Kenny explained to the police that the jeep was voluntarily loaned out and the keys handed over to him. He gave the cops the keys.
The police ask for a GPS and computer, but Kenny told them that he didn’t have any registered company property. Johnson called his lawyer who advised him to tell the cops to take only the jeep.
Johnson said that Del Real is about to go to prison and anyone aligned with him is in trouble.

Both the farm and the jeep are in improved condition from when The Recovery Team took possession of them. We have photographic evidence of that. The employees were paid up to date, and we were current on all bills.

Thursday, April 23rd:

The GGC Recovery Team received a report from Curacaví this evening that Johnson presented one of the farm managers with a criminal complaint for selling various “antiques” and old equipment around the premises to raise money for salaries and operating expenses. The farm managers were interrogated by Johnson’s lawyers and the PDI (Chilean FBI equivalent) for hours.

NOTE: As of May 3rd, 2015 there are no criminal charges on the court website. Johnson may have had a lawyer write up charges but it’s doubtful he would spend the money to file them.

Recovery Team Reaction

These are bullying and intimidation tactics. Former developer Johnson knows full well that the money was used to pay workers wages and operating expenses of an unprofitable farm. What does this say about him, that this swindler who defrauded a group of international investors of $10 million would use the cops to intimidate his former employees, the very men he, just a few hours before, terrorized with Santiago mafiosi? What does it say about Jerry Folta who bankrolled Johnson? And what does it say about Chile?

Regarding Johnson’s reoccupation, Cathy Cuthbert writes:

“The second Johnson Reign of Terror begins, *yawn*. At least we don’t have to worry any more about Diego and Renzo being knifed in the middle of the night.”

“We were well aware that something like this might transpire since for about four weeks, we’ve had evidence of Johnson’s goons casing the farm, and noted several amateurish attempts to gain inside information and stir up dissent among the Recovery Team.”

“While Johnson and Thornton celebrate their Pyrrhic victory, Uriah Heep-like as is their habit, we are reminded of that priceless scene from Tin Men.

The facts are these:

The expenses of the unprofitable farm are off our backs. All the legal fund money will go to legal fees at this very important juncture.
The harvest season is essentially over so there’s no income now, anyway. This is the least profitable time of year and excellent timing for us.
Johnson’s prodigious liabilities are intact and increasing.
The Recovery Team is relieved of management responsibilities, giving us more time to concentrate on the upcoming litigation.
Former developer Johnson now has a golden opportunity to prove he can keep his commitments.

We achieved our goals during our tenure at the farm. We blocked former developer Johnson from misappropriating this year’s harvest income. We paid the farm workers their back pay, pension and health contributions that Johnson owed. We acquired valuable information for our criminal discovery. We’ve made friends and contacts in Curacaví. We demonstrated to the community that we are willing to pay debts. We improved the condition of the farm after years of neglect.

The most important news is that Diego, Coto and Renzo are safe. Whether they continue to work on the farm or find other positions, we thank them for their service to us and wish them well.

The most important take away from this update is that our litigation plans are not affected by this violent act. In fact, we’re better off.”

Let Johnson Meet His Obligations, for a Change

Johnson used investor money to purchase the property and received title to it in his own personal entity (Inmobiliaria Galt’s Gulch SA) and not the entity created by the originating partners to receive title (Galt’s Gulch Chile SA). He’s been responsible for paying all bills, taxes, salaries and maintenance costs of the property from the date of the sale and up to the present day. When the recovery team visited the property, last October, the place was in shambles and the recovery team took it upon themselves to bring all bills, taxes and salaries up to date and clean the place up. From the standpoint of the fraudulent legal title under which the property is currently being held, the recovery team was under no obligation to make such payments. Such remains the case, today.

Of course, Johnson’s MO is to have his cake, eat it, charge others for it, demand someone pay for a new cake and the cost to refrigerate it, refuse to acknowledge that there ever was a cake, accuse anyone within sight of having stolen five cakes, and assaulting the bakers wife! Will this translate into Johnson claiming that Mario Del Real is responsible for all GGC obligations because thief #2 (Real) stole the booty from thief #1 (Johnson)? Johnson’s recent history shows that, if one can imagine it, Johnson can do it, claim it’s the truth or accuse someone else of doing it. The least likely of all things to occur is that Johnson will keep his word to anyone or anything he’s talked about.

No Honor Among Thieves

Johnson appears to have been out-swindled by Mario Del Real who somehow ended up with a significant portion of the shares of Johnson’s personal entity and, therefore, ownership of GGC. Johnson is suing Mario Del Real regarding this transfer/sale. Though he claims to be active in the suit, records show there has been no activity on it since November of 2014.

The investors have been requesting, then demanding, that Johnson share accounting and legal documents with them for 205 days, now. Johnson has been putting them off by returning their requests with either accusations or document fragments that are available to the public. Using Jerry Folta as an intermediary, Johnson recently tried to get the recovery team to pay his accounting bill of $8000 to get access to the records the team paid for, long ago. Here’s an example of the kinds of “deals” Johnson tries to make behind the scenes with his investors: The GGC team was to pay the accountant, in full, and in return would receive an income statement and balance sheet. The full accounting detail of all transactions would then be sent to Johnson and denied to the recovery team!

Well, the GGC team did not take the “deal” as they had already gathered the documents and conducted their own painstaking forensic accounting of what has transpired. As outrageous as the “deal” offered to the team was, an important thing to note is that Johnson doesn’t even have a copy of his own books!

Johnson’s Law

The cost of filing a completed criminal complaint in Chile is ~$50,000 US. ~~Johnson somehow managed to get one filed and~~ But, Johnson has not filed anything with the Chilean courts, recently. The complaint he showed up with at the GGC gates on April 20th, with two policemen in tow, was likely a prop drawn up by a lawyer (Johnson doesn’t speak Spanish).

Johnson’s “complaint” was that the farm workers were selling off his property to pay farm worker salaries and pensions. One must understand that Johnson’s priorities leave the payment of expenses such as farm worker salaries downstream of just about everything.

Cobin made a comment on a podcast in early 2014 wondering when Johnson would run out of lawyers willing to work for him as Johnson seems to have trouble paying his legal and accounting bills. That could mean his current lawyer either won’t be around for long or is expecting a form of compensation other than money.

Johnson is Probably Furious and Broke

If Johnson is the psychopath he’s widely speculated to be such predators are infuriated by exposure of their crimes and schemes. They become physically ill upon losing control to their “Inferiors” (Everyone other than themselves). One theory is that Johnson was so infuriated when the recovery team took over physical control of the property, last October, that he couldn’t stand himself until he took it back. As trivial and adolescent as this may seem to an outside observer such motivations are quite real and possible to a psychopath.

Johnson presents as positive for most items of Dr. Robert Hare’s psychopathy checklist. As such, it’s not irresponsible to use the metaphor that we are all mere projections in the twisted video game Johnson sees through his eyes that he calls his life. There’s a certain threshold of destruction and pain that can only be inflicted by those incapable of feeling empathy for their fellow man and many of those directly involved with GGC believe Johnson is there.

Ironically, Johnson’s occupation of the land is of minor importance to the recovery team. It may even give the team the ability to retain the moral high ground while letting Johnson pay “his own” bills, for a change. Any money that johnson uses to pay a bill would have come from the investors, anyway. In that sense, any bills he pays might be viewed as a form of recovery.

Johnson, like socialism, may also be running short of other people’s money, about now, and need a place to stay. Since he used investor money to pay for the property they should send him an invoice for the rent he’s now accruing by occupying the property and blocking such income to investors. His rental rate could be set at the same rates he quoted for a per-night stay at the hacienda in the sales brochures ($150 per night). Every month Johnson occupies GGC would incur rent due of $4,500 US.

Water Rights?

Johnson may have something up his sleeve in attempting to sell-off (Again) the most valuable asset of the GGC land: Water rights. Although the injunction, which blocks any sale until all legal actions against the property are resolved, is still in place, Johnson’s current lawyer has experience in the area of water rights. It’s not outside of the realm of possibility that Johnson has worked a deal with the lawyer to do this. The criminal complaint Johnson filed, that enabled him to show up at the gates with two policeman, can cost as much as $50k US to perfect. Johnson may have worked some backroom deal with the lawyer to work, pro-bono, with the promise of a share of future water rights. This is mere speculation on my part, but possible, considering what is of remaining value of El Lepe outside of free rent for Johnson.

Johnson Surfaces to Contact Wendy McElroy

Johnson “surfaced” in March to contact libertarian writer, Wendy McElroy, who purchased an option on a GGC parcel with her husband, Brad. Though Wendy is no fan of Johnson she thought perhaps talking with Johnson would facilitate some progress in negotiations without further involvement of State entities. For Johnson’s part, he’s received nothing but the bad press he deserves since Wendy’s exposé, last year. Perhaps Johnson thought he might turn that around if he could be seen as reasonable to a talented writer and GGC option owner. McElroy broached the possibility of further exchanges with Johnson to investors and I have no information about how it might have been received or if any progress was made.

No doubt Wendy’s exposé saved some number of potential new investors from losing money in GGC. She was not, however, responsible for the drop-off in GGC sales, as previously speculated. A forensic accounting of sales receipts shows a precipitous drop-off of investment money in January 2014 after Berwick stopped marketing GGC in October of 2013. So, after deals already in the pipeline were closed … sales slowed to a trickle. As described in Part 4 of this series, Berwick’s marketing efforts were the prime mover in bringing investor money into GGC. When Berwick stopped marketing, people stopped investing. Wendy’s articles exposed the reasons why Berwick stopped marketing but she did not cause him to stop. Berwick followed up the next day with an article of his own confirming Wendy’s information and adding his own take on the state of GGC and why he stopped marketing efforts.

Farm Status

The lemon trees need 50 Liters per second (LPS) to thrive and are now only receiving 1.5 LPS. Receiving so little water will greatly stress the trees and is a bad indictor for next years harvest.

The office and Hacienda were in great shape prior to Johnson’s reoccupation with pictures to prove it. In fact, it might have been about time to start renting it out for supplemental income to support the farm. Now that Johnson’s on site and blocking access to the investors, again, Johnson will most likely let the property fall back into decay. For all of Johnson’s lies the place was approaching biohazard status as the recovery team came on site, in October. We can only hope that Johnson’s hyped “Animal sanctuary” has also lost it’s credibility and more dogs won’t be dropped off to starve to death while Johnson feeds salmon filet’s to his own dog.

Litigation Pending

There are two civil suits pending from investors:

Josh Kirley’s suit which questions the procedures with which “El Lepe” was purchased from Ramirez, by Johnson. The Chileans are meticulous in their paperwork and Johnson showed the wrong ID for the deed of purchase. However, he did show the correct ID (Passport) in the closing. This civil case has already been heard and is awaiting a decision.
Jerry Folta’s civil suit, filed on 4/2/15, on behalf of Jerry’s entity (Jumpin’ G SpA) against Johnson’s entity, Inmobiliaria Galt’s Gulch S.A., for $450,000. Folta paid $450,000 US for the purchase of a 25 acre lemon orchard lot. It appears to me that Folta’s suit is positioned to become an uncontested judgement that will be turned into a lien against Johnson’s entity. Such a lien would put Folta in line before other investors should the company that holds the property be sold. Should Kirley’s suit start fraudulent sales to unravel Folta’s at the front of the line to block the sale or be paid off first.

I should mention that Johnson’s suit filed against Mario Del Real is about the theft of already stolen property. The first theft was performed by Johnson as he took investor money and used it to take ownership of the land in the name of his own personal entity and not the entity formed by Cobin, Eyzaguirre and Berwick with which receipt was to be taken. Therefore, Johnson’s suit against Real involves the dispute between thieves of previously stolen property.

Civil lawsuits are not issued a date to be heard in Chile. This is Chilean style justice and cases are heard as the judge gets to them or sees fit. The general public does not know when a case “is about to be heard”, despite Johnson’s public warnings.

Folta’s Follies

Jerry Folta has been playing both sides against the middle since GGC started unraveling. He pretends to support Johnson while filing civil suits against him. When questioned, he says the other investors don’t understand what’s going on and that he’s not suing Johnson. Technically, it’s Jerry’s entity (Jumpin’ G SpA) filing against Johnson’s entity (Inmobiliaria Galt’s Gulch SA). Is that what investors don’t understand? That the civil suit is filed between entities and not people? If so, Folta’s playing word games with the investors. Folta’s contracts are convoluted, as well, with all sorts of meandering language and terms.

If Folta still supports Johnson and yet files such lawsuits against him, then they’re both playing games such as what I’ve described as a lien disguised as a civil suit. What normal business relationship involves sending invoices to each other in the form of civil lawsuits? Perhaps a relationship in cahoots to use any form of fiat they want to make things go their way: Fiat loans, invoices, liens, mortgages, and even civil lawsuits, in whatever manner they agree to use them to protect their interests. It will take more digging to unravel such alleged constructive filings, completely, and I have not done so.

Short-term Predictions

My predictions are that the same sorts of things that happened before, when Johnson was “in charge” and blocking farm access to the investors who paid for it, will happen again:

Johnson will make no improvements, whatsoever, to the property.
Johnson will conduct no maintenance, whatsoever, to the property.
Johnson will string along, exploit and burn any employees or creditors who didn’t learn the folly of trusting him the last time around.
The place will be slowly returned to biohazard status as a result of Johnson’s squatting and “living” habits.
No bills will be paid so the electricity, and any other utilities, will be shutoff per the policies of the local Chilean energy provider.
Johnson will spend his days trying to figure out how to sell-off anything of value he possibly can: Water rights being the crown jewel and trickling downwards from there.
Any money Johnson receives as a result of one of his sell-off schemes will go directly into his pocket and to no one else.
And, last but not least: Even Jerry Folta will get further burned by Johnson.

When Johnson sends public updates about GGC I’ve found the best way to glean any actual truth they may contain is to invert every assertion and work from there.

Business

Jeff Berwick and Galt’s Gulch Chile: A Regrettable Summary

By Terence Gillespie January 8, 2015

This is part four of a series offering constructive criticism of the Galt’s Gulch Chile land development deal. To come up to speed on the story, see part one: GGC Story, Timeline & References. For the root cause of the current problems, see part two, “The Creature from Galt’s Gulch“. For what might be done to make future deals successful, see part three, “Contracts are Good for Libertarians, too“. Or, forget about all this and see my short, “Two Paragraph Expat Guide to Chile“.

“I did not invest in this fraud, but I listened to all Jeff’s blogs. It seemed clear to me listening it was HIS project and we were being asked to buy land based on Jeff’s brilliance and honesty which he portrays non-stop. He sure ain’t shy selling his brilliance. Jeff clearly wrote this new piece as an attempt to totally distance himself from the project from the get-go and any liability certain to come. I never heard any disclaimer on any of his posts/blogs about his being only distantly associated with this project. He portrayed himself as the owner and operator of it or at least that is how I heard it.”

“JJ” commenting on Berwick’s first Mea Culpa Communique.

I agree with JJ’s assessment of Berwick’s writing and media appearances with regard to GGC. Berwick continued to market GGC until the problems Johnson started causing from the beginning made it impossible to refrain from making a public statement. If Berwick’s reputation is to survive this fiasco he’ll have to do more than write another article for his website describing what others are doing to recover the project and monies stolen.

Berwick may also consider rehab and detox from a clear case of “Next Deal-Itis”.

Next deal-itis

In Berwick’s own words (9:40 – 10:17):

“At that moment in time with my business I was so busy and I didn’t have the proper help I needed. And I really wanted someone to kind of help me manage all these businesses that I had started up which is a problem that I sometimes have. I’m sort of a serial entrepreneur and sometimes I start too many things and I don’t do a good enough job in taking care of some of them as is what happened with Galt’s Gulch, to an extent. I didn’t take the proper care I should have for a project of that size and I put too much faith into one person who turned out to be a horrible person, in my opinion, and completely incompetent at running a business like that.”

After shaking hands with Cobin, Berwick hopped a flight and left “the details with his team”. Except there was no team except Johnson with whom Berwick had a long list of experiences that would have screamed “Danger!”, “Incompetence!” or “Psychopath!” had he been listening. The “details” he left in Johnson’s hands was a foreign land development project that would easily have overwhelmed the most disciplined, talented and honest of land developers.

Does anyone care if Berwick had too many irons in the fire, wanted to get on to the next deal having incompetently dealt with the current one, or that he was moving on to use his platform to bring money into a project into which the death-seed of Johnson had been firmly planted?

Berwick is a match for Robert Ringer’s “Builder-owner” Archtype:

“Builder-owners, bless their hearts, are a unique species. Not only do they not necessarily mean what they say, most of the time they don’t even mean what they think they mean. They live in an entirely different world from the rest of us—one that revolves almost entirely around “the next deal”—and they speak a language all their own. By now, though, I had learned to translate “builderese” doublespeak into English pretty well. For example, “I’m always willing to listen” more often than not really meant, “I’m desperate. Make me an offer.””

Yet Berwick takes it to a whole new level. He doesn’t even mean what he thinks he means when he’s not saying anything at all!

“At the time I thought that my silence on anything related to GGC over the last year would give enough people hints as to my happiness/involvement in the project that many would get the point. Unfortunately many didn’t.”

Perhaps that was due to Berwick’s appearance on Bloomberg during his “Year of Silence”. Does Berwick expect investors to be mind-readers watching his every move for silent cues?

“He’s a fantasy writer, nothing more. He writes about the fantasy of being a badass anarcho-capitalist. It took me a while to realize what big crooks they (Berwick and Johnson) were, but they rubbed elbows with so many people I trusted and respected. Hell, now, whenever anyone I listen to or respect interviews Berwick, I feel my gut drop.”

— Former TDV consultant who “Narrowly escaped involvement with GGC”

Here’s a tip for those who suffer from “Next Deal-Itis”: The fastest way to move on to your next deal is to set up your current deal, properly.

Johnson Superman?

To focus on Berwick I pose the following question about Johnson:

What would Johnson had to have been for Berwick’s actions to have lead to a successful outcome for GGC? In other words, if Johnson had none of the deficiencies attributed to him, what attributes, skills, and experience would be necessary to develop GGC, alone?

Here’s a conservative list:

Experienced Land Developer.
Fluent in Chilean Spanish.
A “People-Person” par excellence.
Able to make complex decisions quickly, and alone, in a foreign country.
Able to handle his personal and business affairs with complete integrity.
A work-a-holic (In a good way).
In constant communication with all partners and agencies he was working with.
Experienced with money management and Chilean bank and currency conversion quirks.
Knowledge of local business customs.
Knowledge of local contracting services.
An extraordinarily talented project manager with impeccable self-discipline.

When reporting on “Simon Black” ceasing activity on “Sovereign Valley Farms”, Cobin speculates that “Black’s” undoing was the inability to find a land developer in Chile with the rare combination of talents, listed above. The talent, experience and character to manage the GGC project Berwick left Johnson to manage is rare, by all accounts. Finding it is the lynchpin of the success of such an undertaking. Berwick somehow concluded that he could fly away from such a complex land development project, to which his name was attached, and be a “silent” and detached marketer.

Marketing is King?

At the very least, Berwick’s behavior hints he values marketing over development rather than seeing both as crucial to the success of such a project. Development work, if Johnson ever did it, is full-time, tedious, and demanding. If Johnson had actually proceeded he would soon resent Berwick’s absence and detachment from the avalanche of real-world “details”.

If this is the kind of “builder-owner” Berwick aspires to be he has a role model in Donald Trump who’s been failing forward to his next project for the past 30 years. The bankruptcies are never personal, but corporate, so the association with failure is never clear.

A Regrettable Summary

In summary, Berwick has revealed himself to be an unworthy steward of precisely the kinds of “deals” he wants to do. What little Berwick did right with GGC wasn’t done in time to make a difference. Yet, Berwick doesn’t appear to want to “Do” anything but make a few calls and write another article on his blog hyping the next bing thing for his readers.

For Berwick’s reference I admit that passive partner “unicorns”, described below, do actually exist and appear from time to time. They tend to appear having done a remarkable amount of real-world due-diligence and with impeccable credentials.

Passive Partner Unicorns

A valid passive partner is a unicorn that appears when:

One’s reputation is so established that the reputation, itself, is a contribution to a business (A great example of this is Arnold and Sylvester’s contribution to Planet Hollywood: All they had to do is show up and let their name be used. Was it worth it to Planet Hollywood? Yes, that’s why they made the deal).
One has the ability to bring capital into a project (Berwick was apparently able to do this for GGC).
One can remove a major obstacle (Usually legal and artificial) from the path of the project (Payoffs, bribes, political manipulations, ad. nauseam).

For those doing the day-to-day work the important contributions of such unicorns may be frustrating. However, such contributions are often the deciding factors of success. The only real-life example I can think of, possessing all three attributes, is Doug Casey. That Mr. Casey is one of the few who’ve managed to create a “foreign” bastion of liberty is no accident.

Berwick will read this reference to Casey and retell his story about not heeding Casey’s advice to “Think very carefully” about what he was doing with GGC. Perhaps it’s best if Berwick cease all reference to his superiors. Consider referring to them only in private prayer during a sabbatical of priest-like transformation and the physical work required to provide restitution to those he’s deceived.

Berwick was able to attract investment capital based on his supposed involvement and recommendation of GGC. If he doesn’t keep his publicly made promises the days of anyone seeing Berwick’s involvement in a project as a positive factor, are over.

Berwick’s Way Out

The way out of this mess for Berwick is to keep the promise he made on Michael W. Dean’s radio show, Freedom Feens, on September 6th, 2014 at 38 minutes into the broadcast:

MWD: “The really big question, and I hope this doesn’t make you uncomfortable, but, apparently you encouraged people to invest in this. If you and them can’t be made whole through private arbitration or through the courts, with this guy, are you willing to do anything to help make those people whole?”

JB: Yeah, absolutely …. yes, I’m going to work the rest of my life, if I have to, to make this right.

MWD: “That’s excellent and very honorable.”

Berwick must also make good on his promise to John Cobin. Why? Because there’s not a libertarian on the planet who will trust Berwick until they know he’s made good with Cobin (And they’ll be asking Cobin about that, not Berwick). The GGC investors and participants don’t owe Cobin a dime. I’m referring to a personal promise Berwick made to Cobin. It was Berwick’s responsibility to fulfill that promise. If what Berwick had in mind was to be built in to the sales structure of GGC then Berwick should have done so prior to the first peso being accepted into escrow on lot options. Of course, there was no escrow as Johnson was using investment capital like a personal bank account. Berwick is just as responsible for that as Johnson as it’s something a normally functioning 50/50 partner would discover a few hours to a day after it started happening.

Cobin has been admirably forgiving to Berwick and will likely remain so. Those less forgiving than Cobin, however, will be watching his every move. If Cobin isn’t satisfied then he’ll remain the elephant in Berwick’s “International” room, for a long time. Berwick either makes it right with Cobin or he’s made the equivalent of a conscious choice to cut himself off of future capital to pay for his white linen suits, cigars and booze.

Berwick Isn’t Working with the GGC Rescue Team

In all references to the GGC rescue team Berwick is careful to point out he has no affiliation with them nor is he working with or assisting them, in any way. It seems odd for Berwick to be at arm’s length to the GGC team but that’s the way he puts it. I point this out because he’s already using the word “we” when reporting on the team’s success.

In fact, neither his promise to investors or to Cobin have anything to do with the work of the GGC rescue team. If Berwick thinks it does then he should be working with the team, full-time. Otherwise, he’s fallen back into sales-speak and is, once again, leveraging the efforts of others and claiming they’re his.

Berwick’s promise to Cobin was made before the property that became GGC was purchased. It’s not the GGC team’s responsibility to fulfill Berwick’s personal promises to Cobin. The same goes for his promise to work the rest of his life, if he has to, to make things right with the investors who invested in GGC because Berwick encouraged them to.

Do people who lost money on GGC because of Berwick have to be working with the GGC team, directly, to be made whole? In other words, do all the people Berwick mislead now have to work together, themselves, to fulfill Berwick’s promise to them? What about investors like Wendy and Brad who refuse to involve the state, in any way? They have every right to do so and yet are still covered by Berwick’s unconditional promise.

The GGC Rescue team is already doing the arbitration and court work Berwick says he’s got nothing to do with. What will Berwick be doing, personally, to fulfill his promises?

Did Berwick Lose Money on GGC?

See if you can tell after reading what he wrote about that:

“They told me to just take my losses (my total losses of expenses, loans and money taken by Ken that I had given to him in exchange for a separate deal that he reneged on is approximately $500,000).”

“A separate deal that he reneged on” isn’t GGC money. So, what were Berwick’s direct losses on GGC? Based on what Berwick has written I don’t think it’s possible to know.

Public Apologies are Not Restitution

Public apologies are an excellent first step in what Berwick refers to as “Penance“. Yet, Apology is the easy part of penance. What follows should be consistency and the work of restitution. The work of restitution comes when one stops talking and starts restituting.

Those who’ve lost money on GGC surely hope the “work” Berwick is referring to doesn’t begin and end with another apology or article about what the GGC team is doing. The direct relationship between words and deeds may be too much for Salesman Berwick to comprehend. If so, the tragedy for Berwick has only just begun with the publicity of his regrettable behavior with regard to GGC.

Berwick refers to at least one investor with a family now living in his car having invested his life savings in GGC. Why wouldn’t such an investor be living in Berwick’s “house on the hill” in Acapulco?

Berwick is a young man and I’d prefer to err on the side of optimism for a future that is completely dependant on his own thoughts and actions. This period of that life requires a priest-like transformation and fulfillment of his personal promises. The appropos demeanor and perspective is that of Paul Newman in “The Verdict” where Newman’s character knows his entire life depends on the outcome of the case he’s working on. In desperation, Newman repeats to himself the prayer-like mantra of: “There are no other cases. This is the case!”

Hey, Jeff! There are no other cases. This is the case!

Fielding softball “International Man” questions on Bloomberg on behalf of the libertarian crowd is a walk in the park compared to keeping real-life, publicly made promises.

Johnson’s Way Out

The way out for Johnson is his next deal. Just like he did with the last one, before meeting Berwick, Johnson will disappear from Chile and reappear somewhere else on the globe with a new story and a rapidly moving mouth. Here’s Johnson in 2010 talking to a child about wind turbines:

Johnson’s whereabouts are unknown (As of 1/8/14). My guess is he’s in Paraguay holed up in a hostel with a backpack of booty stolen from GGC.

From Johnson’s point of view GGC was a resounding success. After all, where did all the money go that no one can find? Whatever Johnson got is money he didn’t have or earn. His living expenses were paid for the three years he was tying GGC capital in knots. How many three-year cons does Johnson have to pull for the string of victims to pay his expenses for the next 20 years? GGC was a big score for him. One or two more and Johnson can live off the booty for the rest of his life . . . if he can stop his mouth from moving.

What, no talk of justice for Johnson?

Most probably, not. Or, perhaps you’re empathizing with Johnson and tempted to cite his anguish and fear. And, what about the persecution of being on the run and being hounded by state officials or the GGC team trying to bring him to justice?

Nah, Johnson doesn’t feel any of that. To the extent you believe he does you’re ripe for being fooled by the next “Johnson”. If you want to understand a psychopath you don’t get there by empathy. You get there by studying them like a spider in a jar. What you’ll learn is that the only way to win is to not play with them. If you have them in a jar, don’t let them out.

Postscript

As light-hearted as Ayn Rand tried to make the fictional “Galt’s Gulch” it felt stiff to me. The biggest thing it had going for it was the reflective shield that made it invisable from the air. If one has withdrawn into the right country the best camoflauge is to blend in and be the gentleman, or lady, you are. Beautiful manners and graceful comportment make life wonderful and increase the liberty of those who rise to every occasion to show them. Excellent company doesn’t grow on trees but, the odds of finding it increase when you become the excellent company you seek.

Manage your engaged withdrawal, well, and you won’t be alone for long.

This is the last of the GGC series unless there are further developments that warrant commentary. If anyone connected to this incident may offer corrections, omissions, or suggest additions to what has been written, please contact me.

Galt’s Gulch Chile — Story, Timeline & References

See Part One to read this series from the beginning, Galt’s Gulch Chile — Story, Timeline & References. Or, forget about all this and see my short, “Two Paragraph Expat Guide to Chile“.

galt’s gulch chile