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Friday, June 14, 2013

Michael Karkoc, Minnesota Man, Was Top Commander Of Nazi SS-Led Unit: AP Report

By DAVID RISING, RANDY HERSCHAFT and MONIKA SCISLOWSKA 06/14/13  - Huffingtonpost.com 


BERLIN — BERLIN (AP) – A top commander of a Nazi SS-led unit accused of burning villages filled with women and children lied to American immigration officials to get into the United States and has been living in Minnesota since shortly after World War II, according to evidence uncovered by The Associated Press.
Michael Karkoc, 94, told American authorities in 1949 that he had performed no military service during World War II, concealing his work as an officer and founding member of the SS-led Ukrainian Self Defense Legion and later as an officer in the SS Galician Division, according to records obtained by the AP through a Freedom of Information Act request. The Galician Division and a Ukrainian nationalist organization he served in were both on a secret American government blacklist of organizations whose members were forbidden from entering the United States at the time.
Though records do not show that Karkoc had a direct hand in war crimes, statements from men in his unit and other documentation confirm the Ukrainian company he commanded massacred civilians, and suggest that Karkoc was at the scene of these atrocities as the company leader. Nazi SS files say he and his unit were also involved in the 1944 Warsaw Uprising, in which the Nazis brutally suppressed a Polish rebellion against German occupation.
Polish prosecutors announced Friday after the release of the AP investigation that they will investigate Karkoc and provide "every possible assistance" to the U.S. Department of Justice, which has used lies in immigration papers to deport dozens of suspected Nazi war criminals. The AP evidence of Karkoc's wartime activities has also prompted German authorities to express interest in exploring whether there is enough to prosecute.
Karkoc refused to discuss his wartime past at his home in Minneapolis, and repeated efforts to set up an interview, using his son as an intermediary, were unsuccessful.
Efraim Zuroff, the lead Nazi hunter at the Simon Wiesenthal Center in Jerusalem, said that based on his decades of experience pursuing Nazi war criminals, he expects that the evidence showing Karkoc lied to American officials and that his unit carried out atrocities is strong enough for deportation and war-crimes prosecution in Germany or Poland.
The deputy head of the German office that investigates Nazi war crimes, Thomas Will, said that based on the AP's evidence, he is interested in gathering information that could possibly result in prosecution.
Karkoc now lives in a modest house in northeast Minneapolis in an area with a significant Ukrainian population. Even at his advanced age, he came to the door without help of a cane or a walker. He would not comment on his wartime service for Nazi Germany.
"I don't think I can explain," he said.
Members of his unit and other witnesses have told stories of brutal attacks on civilians.
One of Karkoc's men, Vasyl Malazhenski, told Soviet investigators that in 1944 the unit was directed to "liquidate all the residents" of the village of Chlaniow, Poland, in a reprisal attack for the killing of a German SS officer, though he did not say who gave the order.
In a background check by U.S. officials on April 14, 1949, Karkoc said he had never performed any military service, telling investigators that he "worked for father until 1944. Worked in labor camp from 1944 until 1945."
However, in a Ukrainian-language memoir published in 1995, Karkoc states that he helped found the Ukrainian Self Defense Legion in 1943 in collaboration with the Nazis' feared SS intelligence agency, the SD, to fight on the side of Germany – and served as a company commander in the unit, which received orders directly from the SS, through the end of the war.
The AP located a copy online in an electronic Ukrainian library.
Karkoc's name surfaced when a retired clinical pharmacologist who took up Nazi war crimes research in his free time came across it while looking into members of the SS Galician Division who emigrated to Britain. Stephen Ankier, who is based in London, tipped off AP when an Internet search showed an address for Karkoc in Minnesota.
The AP located Karkoc's U.S. Army intelligence file, and got it declassified by the National Archives in Maryland through a FOIA request. The file said standard background checks found no red flags that would disqualify him from entering the United States but noted that key information from the Soviet side was missing.
Wartime documents located by the AP also confirm Karkoc's membership in the Self Defense Legion. They include a Nazi payroll sheet found in Polish archives, signed by an SS officer on Jan. 8, 1945 – only four months before the war's end – confirming that Karkoc was present in Krakow, Poland, to collect his salary as a member of the Self Defense Legion. Karkoc signed the document.
Karkoc, an ethnic Ukrainian, was born in the city of Lutsk in 1919, according to details he provided American officials. At the time, the area was being fought over by Ukraine, Poland and others; it ended up part of Poland until World War II. Several wartime Nazi documents note the same birth date, but say he was born in Horodok, a town in the same region.
He joined the regular German army after the Nazi invasion of the Soviet Union in 1941 and fought on the Eastern Front in Ukraine and Russia.
He was also a member of the Ukrainian nationalist organization OUN; in 1943, he helped negotiate with the Nazis to have men drawn from its membership form the Self Defense Legion, according to his account. The legion eventually numbered some 600 soldiers and was folded into the SS Galician Division in 1945.
Policy at the time of Karkoc's immigration application – according to a declassified secret U.S. government document obtained by the AP from the National Archives – was to deny a visa to anyone who had served in either the SS Galician Division or the OUN.
In Washington, Justice Department spokesman Michael Passman said the agency was aware of the AP story but could neither confirm nor deny details of specific investigations as a matter of policy.
Though Karkoc talks in his memoirs about fighting anti-Nazi Polish resistance fighters, he makes no mention of attacks on civilians. He does indicate he was with his company in the summer of 1944 when the Self Defense Legion's commander, Siegfried Assmuss, was killed by a partisan attack near Chlaniow.
He did not mention the retaliatory massacre that followed, which was described in detail by Malazhenski in his 1967 statement. An SS administrative list obtained by AP shows that Karkoc was Malazhenski's commander.
Malazhenski said the Ukrainian unit was ordered to liquidate Chlaniow in reprisal for Assmuss' death, and moved in the next day, machine-gunning people and torching homes. More than 40 people died.
"The Ukrainians were setting fire to the buildings," Chlaniow villager Stanislawa Lipska told a communist-era commission in 1948. "You could hear machine-gun shots and grenade explosions. Shots could be heard inside the village and on the outskirts. They were making sure no one escaped."
Witness statements and other documentation also link the unit circumstantially to a 1943 massacre in Pidhaitsi, on the outskirts of Lutsk _today part of Ukraine – where the Self Defense Legion was once based. A total of 21 villagers, mostly women and children, were slaughtered.
Heorhiy Syvyi was a 9-year-old boy when troops swarmed into Pidhaitsi on Dec. 3 but managed to flee with his father and hide.
"When we came out we saw the smoldering ashes of the burned house and our neighbors searching for the dead. My mother had my brother clasped to her chest. This is how she was found – black and burned," said Syvyi, now 78.
There is evidence that the unit took part in the brutal suppression of the 1944 Warsaw Uprising, fighting the nationalist Polish Home Army as it sought to rid the city of its Nazi occupiers.
The uprising was put down by the Nazis in a house-to-house fight characterized by its ferocity.
The Self Defense Legion's exact role is not known, but Nazi documents indicate that Karkoc and his unit were there.
An SS payroll document, dated Oct. 12, 1944, says 10 members of the Self Defense Legion "fell while deployed to Warsaw." Karkoc is listed as the highest-ranking commander of 2 Company – a lieutenant – on a pay sheet.
Following the war, Karkoc ended up in a camp for displaced people in Neu Ulm, Germany, according to documents obtained from the International Tracing Service in Bad Arolsen, Germany. The documents indicate that his wife died in 1948, a year before he and their two young boys – born in 1945 and 1946 – emigrated to the U.S.
After he arrived in Minneapolis, he remarried and had four more children, the last born in 1966.
Karkoc told American officials he was a carpenter, and records indicate he worked for a nationwide construction company that has an office in Minneapolis.
A longtime member of the Ukrainian National Association, Karkoc has been closely involved in community affairs over the past decades and was identified in a 2002 article in a Ukrainian-American publication as a "longtime UNA activist."
___
Herschaft reported from New York and Scislowska from Warsaw; Doug Glass, Patrick Condon and Amy Forliti in Minneapolis, Minnesota; Maria Danilova in Kiev, Ukraine; Efrem Lukatsky in Pidhaitsi, and Svetlana Fedas in Lviv, Ukraine, contributed to this story.
___
David Rising can be reached at ; Randy Herschaft at
Links:


How Bush's grandfather helped Hitler's rise to power


Rumours of a link between the US first family and the Nazi war machine have circulated for decades. Now the Guardian can reveal how repercussions of events that culminated in action under the Trading with the Enemy Act are still being felt by today's president 

Ben Aris in Berlin and Duncan Campbell in Washington
The Guardian, Saturday 25 September 2004 


George Bush's grandfather, the late US senator Prescott Bush, was a director and shareholder of companies that profited from their involvement with the financial backers of Nazi Germany.
The Guardian has obtained confirmation from newly discovered files in the US National Archives that a firm of which Prescott Bush was a director was involved with the financial architects of Nazism.

His business dealings, which continued until his company's assets were seized in 1942 under the Trading with the Enemy Act, has led more than 60 years later to a civil action for damages being brought in Germany against the Bush family by two former slave labourers at Auschwitz and to a hum of pre-election controversy.

The evidence has also prompted one former US Nazi war crimes prosecutor to argue that the late senator's action should have been grounds for prosecution for giving aid and comfort to the enemy.

The debate over Prescott Bush's behaviour has been bubbling under the surface for some time. There has been a steady internet chatter about the "Bush/Nazi" connection, much of it inaccurate and unfair. But the new documents, many of which were only declassified last year, show that even after America had entered the war and when there was already significant information about the Nazis' plans and policies, he worked for and profited from companies closely involved with the very German businesses that financed Hitler's rise to power. It has also been suggested that the money he made from these dealings helped to establish the Bush family fortune and set up its political dynasty.

Remarkably, little of Bush's dealings with Germany has received public scrutiny, partly because of the secret status of the documentation involving him. But now the multibillion dollar legal action for damages by two Holocaust survivors against the Bush family, and the imminent publication of three books on the subject are threatening to make Prescott Bush's business history an uncomfortable issue for his grandson, George W, as he seeks re-election.

While there is no suggestion that Prescott Bush was sympathetic to the Nazi cause, the documents reveal that the firm he worked for, Brown Brothers Harriman (BBH), acted as a US base for the German industrialist, Fritz Thyssen, who helped finance Hitler in the 1930s before falling out with him at the end of the decade. The Guardian has seen evidence that shows Bush was the director of the New York-based Union Banking Corporation (UBC) that represented Thyssen's US interests and he continued to work for the bank after America entered the war.

Tantalising
Bush was also on the board of at least one of the companies that formed part of a multinational network of front companies to allow Thyssen to move assets around the world.

Thyssen owned the largest steel and coal company in Germany and grew rich from Hitler's efforts to re-arm between the two world wars. One of the pillars in Thyssen's international corporate web, UBC, worked exclusively for, and was owned by, a Thyssen-controlled bank in the Netherlands. More tantalising are Bush's links to the Consolidated Silesian Steel Company (CSSC), based in mineral rich Silesia on the German-Polish border. During the war, the company made use of Nazi slave labour from the concentration camps, including Auschwitz. The ownership of CSSC changed hands several times in the 1930s, but documents from the US National Archive declassified last year link Bush to CSSC, although it is not clear if he and UBC were still involved in the company when Thyssen's American assets were seized in 1942.

Three sets of archives spell out Prescott Bush's involvement. All three are readily available, thanks to the efficient US archive system and a helpful and dedicated staff at both the Library of Congress in Washington and the National Archives at the University of Maryland.

The first set of files, the Harriman papers in the Library of Congress, show that Prescott Bush was a director and shareholder of a number of companies involved with Thyssen.

The second set of papers, which are in the National Archives, are contained in vesting order number 248 which records the seizure of the company assets. What these files show is that on October 20 1942 the alien property custodian seized the assets of the UBC, of which Prescott Bush was a director. Having gone through the books of the bank, further seizures were made against two affiliates, the Holland-American Trading Corporation and the Seamless Steel Equipment Corporation. By November, the Silesian-American Company, another of Prescott Bush's ventures, had also been seized.
The third set of documents, also at the National Archives, are contained in the files on IG Farben, who was prosecuted for war crimes.
A report issued by the Office of Alien Property Custodian in 1942 stated of the companies that "since 1939, these (steel and mining) properties have been in possession of and have been operated by the German government and have undoubtedly been of considerable assistance to that country's war effort".
Prescott Bush, a 6ft 4in charmer with a rich singing voice, was the founder of the Bush political dynasty and was once considered a potential presidential candidate himself. Like his son, George, and grandson, George W, he went to Yale where he was, again like his descendants, a member of the secretive and influential Skull and Bones student society. He was an artillery captain in the first world war and married Dorothy Walker, the daughter of George Herbert Walker, in 1921.
In 1924, his father-in-law, a well-known St Louis investment banker, helped set him up in business in New York with Averill Harriman, the wealthy son of railroad magnate E H Harriman in New York, who had gone into banking.
One of the first jobs Walker gave Bush was to manage UBC. Bush was a founding member of the bank and the incorporation documents, which list him as one of seven directors, show he owned one share in UBC worth $125.
The bank was set up by Harriman and Bush's father-in-law to provide a US bank for the Thyssens, Germany's most powerful industrial family.
August Thyssen, the founder of the dynasty had been a major contributor to Germany's first world war effort and in the 1920s, he and his sons Fritz and Heinrich established a network of overseas banks and companies so their assets and money could be whisked offshore if threatened again.
By the time Fritz Thyssen inherited the business empire in 1926, Germany's economic recovery was faltering. After hearing Adolf Hitler speak, Thyssen became mesmerised by the young firebrand. He joined the Nazi party in December 1931 and admits backing Hitler in his autobiography, I Paid Hitler, when the National Socialists were still a radical fringe party. He stepped in several times to bail out the struggling party: in 1928 Thyssen had bought the Barlow Palace on Briennerstrasse, in Munich, which Hitler converted into the Brown House, the headquarters of the Nazi party. The money came from another Thyssen overseas institution, the Bank voor Handel en Scheepvarrt in Rotterdam.
By the late 1930s, Brown Brothers Harriman, which claimed to be the world's largest private investment bank, and UBC had bought and shipped millions of dollars of gold, fuel, steel, coal and US treasury bonds to Germany, both feeding and financing Hitler's build-up to war.
Between 1931 and 1933 UBC bought more than $8m worth of gold, of which $3m was shipped abroad. According to documents seen by the Guardian, after UBC was set up it transferred $2m to BBH accounts and between 1924 and 1940 the assets of UBC hovered around $3m, dropping to $1m only on a few occasions.
In 1941, Thyssen fled Germany after falling out with Hitler but he was captured in France and detained for the remainder of the war.
There was nothing illegal in doing business with the Thyssens throughout the 1930s and many of America's best-known business names invested heavily in the German economic recovery. However, everything changed after Germany invaded Poland in 1939. Even then it could be argued that BBH was within its rights continuing business relations with the Thyssens until the end of 1941 as the US was still technically neutral until the attack on Pearl Harbor. The trouble started on July 30 1942 when the New York Herald-Tribune ran an article entitled "Hitler's Angel Has $3m in US Bank". UBC's huge gold purchases had raised suspicions that the bank was in fact a "secret nest egg" hidden in New York for Thyssen and other Nazi bigwigs. The Alien Property Commission (APC) launched an investigation.
There is no dispute over the fact that the US government seized a string of assets controlled by BBH - including UBC and SAC - in the autumn of 1942 under the Trading with the Enemy act. What is in dispute is if Harriman, Walker and Bush did more than own these companies on paper.
Erwin May, a treasury attache and officer for the department of investigation in the APC, was assigned to look into UBC's business. The first fact to emerge was that Roland Harriman, Prescott Bush and the other directors didn't actually own their shares in UBC but merely held them on behalf of Bank voor Handel. Strangely, no one seemed to know who owned the Rotterdam-based bank, including UBC's president.
May wrote in his report of August 16 1941: "Union Banking Corporation, incorporated August 4 1924, is wholly owned by the Bank voor Handel en Scheepvaart N.V of Rotterdam, the Netherlands. My investigation has produced no evidence as to the ownership of the Dutch bank. Mr Cornelis [sic] Lievense, president of UBC, claims no knowledge as to the ownership of the Bank voor Handel but believes it possible that Baron Heinrich Thyssen, brother of Fritz Thyssen, may own a substantial interest."
May cleared the bank of holding a golden nest egg for the Nazi leaders but went on to describe a network of companies spreading out from UBC across Europe, America and Canada, and how money from voor Handel travelled to these companies through UBC.
By September May had traced the origins of the non-American board members and found that Dutchman HJ Kouwenhoven - who met with Harriman in 1924 to set up UBC - had several other jobs: in addition to being the managing director of voor Handel he was also the director of the August Thyssen bank in Berlin and a director of Fritz Thyssen's Union Steel Works, the holding company that controlled Thyssen's steel and coal mine empire in Germany.
Within a few weeks, Homer Jones, the chief of the APC investigation and research division sent a memo to the executive committee of APC recommending the US government vest UBC and its assets. Jones named the directors of the bank in the memo, including Prescott Bush's name, and wrote: "Said stock is held by the above named individuals, however, solely as nominees for the Bank voor Handel, Rotterdam, Holland, which is owned by one or more of the Thyssen family, nationals of Germany and Hungary. The 4,000 shares hereinbefore set out are therefore beneficially owned and help for the interests of enemy nationals, and are vestible by the APC," according to the memo from the National Archives seen by the Guardian.
Red-handed
Jones recommended that the assets be liquidated for the benefit of the government, but instead UBC was maintained intact and eventually returned to the American shareholders after the war. Some claim that Bush sold his share in UBC after the war for $1.5m - a huge amount of money at the time - but there is no documentary evidence to support this claim. No further action was ever taken nor was the investigation continued, despite the fact UBC was caught red-handed operating a American shell company for the Thyssen family eight months after America had entered the war and that this was the bank that had partly financed Hitler's rise to power.
The most tantalising part of the story remains shrouded in mystery: the connection, if any, between Prescott Bush, Thyssen, Consolidated Silesian Steel Company (CSSC) and Auschwitz.
Thyssen's partner in United Steel Works, which had coal mines and steel plants across the region, was Friedrich Flick, another steel magnate who also owned part of IG Farben, the powerful German chemical company.
Flick's plants in Poland made heavy use of slave labour from the concentration camps in Poland. According to a New York Times article published in March 18 1934 Flick owned two-thirds of CSSC while "American interests" held the rest. 


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