The Underworld Podcast - The Dominion of Melchizedek: The "Mothership for Con Artists Worldwide"

Episode Date: November 7, 2023

Back in the early 1980s David and Mark Pedley were little more than a father-son real estate scam duo. Then came prison, escape, and a self-penned Bible, named for an obscure Jerusalem priest and the ...foundation for a micronation called the Dominion of Melchizedek. It was no ordinary secession movement. The Dominion would become one of its era's greatest swindles, taking in bogus firms, Vegas slots, Hong Kong archdukes and Idy Amin's mansion. Then, with the backing of a mysterious Carpathian tribe, the Dominion of Melchizedek declared war on France. Part one of a frankly insane two-parter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript
Discussion (0)
Starting point is 00:00:00 Ambition comes in all shapes and sizes. At First Citizens Bank, we roll with your goals because we're built for what you're building. Fit for your ambition for Citizens Bank. Own it all. Pay off your home, travel for life, drive a Ferrari. In celebration of the world premiere of the Monopoly Big Board Buckslot Machine by Aristocrat Gaming,
Starting point is 00:00:23 Yamava Resort and Casino at San Manuel is giving one person a $1.6 million dream package. The biggest prize in Yamava's history. Club Serrano members can earn dignity. instant prizes and secure a spot in the finale May 29. Don't pass go and own it all. Only at Yamava, celebrating its 40th anniversary. You win? Details at Yamava.com must be 21-20. Please gamble responsibly.
Starting point is 00:00:42 Monopoly is a trademark of Hasbro. Hasbro is not a sponsor of this promotion. It's 1995. The world is beginning to understand the horrors of Rwandas genocide. The Umshinrikio cult kills eight people in Tokyo subway and an extremist murders Israeli Prime Minister
Starting point is 00:00:59 Yitzhakra Bing. Out on a remote corner of the South Pacific though, another deadly conflict is brewing. France has spent decades detonating thermonuclear devices off the coast of its colonial possessions in French Polynesia, and it handles opposition with all the deafness of a Parisian football fan. See the deadly 1985 bombing of Greenpeace shipped the Rainbow Warrior, for example, something French operatives neatly codename Operation Satanique.
Starting point is 00:01:29 Protests erupt across the Pacific region, from New Zealand to Nui. But one state takes it several steps further. The Dominion of Melchazetic, named for a briefly mentioned Talmudic King, is impossible to find on a contemporary world map. Its US Embassy is little more than a Washington, D.C. mail drop, and its diplomatic corps, a cast of bodbils, misfits and scoundrels, scattered in places from California to Hong Kong like Conman Confetti.
Starting point is 00:02:00 Their chief is a US citizen by the name of Mark Pedley, though he's long since changed that to something a little more snappy, Semak Ben David Netzer Kodem, or Brunch Vindresser, naturally. For sure, more on that later. Bindresser and his dominion's only apparent landholding is a 14 square mile Gilliganesque island somewhere near the Marshall Islands, which it claims to have bought the previous year for a king's ransom of $5 million. That still puts it thousands of miles from the underground bunker shafts on Fangatofa
Starting point is 00:02:36 Atoll that are about to be pounded with a nuclear device of almost 100 kilotons. Around eight times the size of the little boy bomb dropped on Hiroshima in August 1945. Bindresser though isn't one for the nuances of Pacific Geography. And as protest royal on Auckland, Paris and elsewhere, the Dominion of Melchazetic issues a flaming hot missive to newspapers and embassy worldwide. Under the constitution of the dominion of Melchazetic, war has been declared on France. The declaration is made on behalf of all mankind.
Starting point is 00:03:12 It is with reluctance that the Polynesian Melchazetic Dominion declares war on France, since up till recently France was considered a silent ally. The Ruthenian Melchazetic Dominion is considering aiming at France the nuclear weapons left behind in the Carpatho mountains by the Soviet Union as leverage in the war. Bindresser goes on. The indication is that our people in Ruthenia are threatening to do that without our approval, he writes. We're caught in a dichotomy. Our principles are peace and to use nuclear weapons would run against our ideas.
Starting point is 00:03:51 We want to establish the government on Earth that would be a model for other governments to follow. responding in the Washington Post article, the French are, well, very French indeed. I have nothing to say, says French US Embassy spokesman John Christoph Bayard. Of course, he adds, I feel a great deal of emotion now. We are probably at war. I maybe called it any minute to fight. Then, holding back fits of laughter, he admits, quote, I follow matters quite closely, and I haven't been informed of this.
Starting point is 00:04:21 Global nuclear holocaust perhaps diverted, Beindresser will later play down the declaration as a bizarre printing error. We are only discussing it and somehow it turned into a press release, he says, oblivious, it seems, to the existence of pens, letters, emails, or even human consciousness. Byndressers, it's a prank excuse may be funny, but the truth behind the dominion of Melchazetic is anything but, and country or not, it's been causing havoc across the world far longer than the fallout from a French nuclear bomb.
Starting point is 00:04:55 Well, actually, that's not true at all. It's incredibly funny, too. And it all begins back in the 1980s, when an American father and son scams the duo go on the lamb, skipping the Mexican border and laying the foundations of a wild new religion. Welcome to the underworld podcast. Hello, everyone. This is the podcast where two journalists sitting in small apartment bedrooms regale you with tales of high crime and journalistic mishaps from Long Island to Harlong Bay.
Starting point is 00:05:41 I'm Sean Williams in Tefanganui Atara, and I'm joined by Danny Gold on a city block in Lenapehoking, apparently. Let's cancel Brooklyn. Much going on your end? Fancy telling us more about your recent exploits in Chicago? I don't know if anyone understands when you say those place names, but maybe our seven listeners in New Zealand get a kick out of it. There's a few, Mardi, yeah.
Starting point is 00:06:03 You know, Chicago was good. Definitely not going to be one of those doc series that's glamorizing the mafia, like some of the darkest interviews I've ever done. But Chicago's great, man. Wish I spent more time there, Amazing City. Yeah, never been. Well, I did go once and someone stopped me going into the city. Anyway, as always, Patreon's rumbling along with bonuses on a host of interesting crimes and characters.
Starting point is 00:06:26 The Instagram's there, as always. We've got longs and shorts up on the YouTube. Yeah, I think our TikTok actually got taken down, which is absurd. It's like, you know, videos of Hitler getting millions of likes and somehow. our account gets the activated. I think the, the CCP is after us. It has to be, and we should get in on the, like, they're censoring us, Gryft.
Starting point is 00:06:44 Do you think, if we try that out, we can get more Patreon on subscribers? If you went on Rogan and said that, I think we would double Aaron Tago overnight. But, yeah, let's do it. Let's do it. We should send out a few emails. I mean, I appreciate anything you guys
Starting point is 00:06:56 can give us towards our work, too, not just Rogan. And that'll include some more reporting stuff in the near future, including the second part of this episode, by the way, been over some pretty mad, kind of mad, kind of boring, but I won't make them boring for you guys, conversations about sovereign citizens. But if you can't give us a few bucks, then please do like, share, subscribe, all that stuff helps us out a ton. So hold on to your butts guys, because this one
Starting point is 00:07:22 has got pretty much everything. Archdukes in China, self-scribed bibles, Philippine gold mining, Vegas slots, Idi Armin's Mansion, stolen rubies, penny stocks, and of course, a narrowly of nuclear war in the Pacific. Now, the Dominion of Melchazetic is many things, but here is SF Weekly's Peter Jameson from a 2011 feature title Fantasy Island, which I'll be coming back to a lot in the second part. It's really great. Quote, the dominion of Melchazetic, according to government authorities, was intended to act as a sort of mothership for con artists worldwide,
Starting point is 00:07:58 issuing fake banking licenses, passports and other documents to lend a veneer of official authenticity, to fraud schemes. Everything about it is phony, says John Shockey, former head of the fraud unit for the US controller of the currency. Mothership for con artists is kind of, like worldwide, it sounds pretty awesome. I'd hop on board that. Hey, I mean, you pay your money, you get your passport. So, yeah, just reach out.
Starting point is 00:08:24 They're still going. According to the Dominion's website, and like I say, this thing is very much alive and kicking. It is a quote, ecclesiastical sovereign state, which is essentially trying to emulate the Vatican or the Knights Templar, which at various stages in history were nations without land. Now, I've spoken at length with the Dominion's current leader so I can give a little insight into what he thinks it is.
Starting point is 00:08:47 Wait, you're speaking to him? Didn't you just learn your last grifter lesson with like a $100 million lawsuit hanging over your head? Man, the amount of freaks and crazies that have popped out of the woodwork since I wrote that Rolling Stone, I call it's pretty insane. But, yeah, I can probably go into a bit of, that in next week's episode because he is an interesting guy, some very strident views as you might expect. But basically, we are in the world of micronations, which, if you like writing
Starting point is 00:09:17 quirky magazine features, as we both do, it's pretty much a gold mine. According to the dictionary, a micro nation or a micro state is, quote, a small area or political entity that claims national sovereignty, but is not recognized by other sovereign states. It's pretty wide, emit, there are over a hundred of these things worldwide, and folks have founded them for a wide number of reasons, both highfalutin and low. The most common reason is, cheers Ockham, narcissism, and you've got tons of men, and they're all men, of course, calling themselves the king of this, the grand duke of that. Guys who like to parade around like Sasha Baron Cohen's dictator in a party city outfit, printing comic sans constitutions on Foolscap. It's basically an alliance of neck
Starting point is 00:09:59 beards. There's even a biennial conference for these guys called Microcon, which actually happened this year in Chicago. You should have called that when you were there. The next one is in 2025, apparently. It's going to be hosted by the Erecan Empire, the Aeerican Empire. They've neatly taken out the M. The new graveyard of St. Castan and the Principality of Sanctosia in Montreal, Canada. Oh yeah, we're going for sure. I mean, we actually are. Given there's already a bit of a separatist movement in Quebec, you might have guessed.
Starting point is 00:10:32 these are not unrecognized states like Tibet, Bougainville, Abkhazio, West Papua. They're not signatories to the UNPO, even if their founders think they're just as important. Anyway, beyond the neckbeards, you've got fascist nutcase micronation founders. That would be Peter Fitzsac, for example, in Germany, a martial arts tutor and member of the so-called Reichberger, or Citizens of the Kingdom movement, that coalesce with QAnon and other anti-vax conspiracy theorists during COVID to form a kind of tin foil hat alliance.
Starting point is 00:11:04 I actually traveled around Germany and wrote about a couple years back with my pal Florian Neuhoff for GQ and I've stuck it on the reading list for Patreon subscribers. Oh yeah, I know Florian from Iraq. Really? Did you meet up in her bill? Yeah, we met a couple times there for sure.
Starting point is 00:11:18 Oh, cool. Yeah, he's in Berlin. We've done a bunch of reporting together. The Reichsburger movement, they basically believe that modern Germany is actually a company created by the Allies and, of course, the Jews. At the end of the Second World War, you see these guys waving old red, white and black Kaiser Reich flags at protests. Others have an affinity for a different Reich altogether.
Starting point is 00:11:42 Last December, cops broke up a plot to overthrow the German state and installed a dictatorship headed by an obscure German aristocrat, and others afford police plots to carry out a so-called day X of bloodletting on migrants. So it's not all fun and games. Anyway, I'm heading off track. Peter Fitzek, King Peter, the martial arts guy. He actually offered me to show me around his life in 2021, then backed out the coward, small town near Berlin,
Starting point is 00:12:09 handful of loyal devotees, and he's alleged to have poned folks out of $1.4 million over the years. I should have done a piece on him, but a business week, right, I beat me to the punch. As you may already have guessed, a lot of this is tied up in the sovereign citizens movement, which, honestly, I just can't be getting into too much detail here, but it's all very new world order,
Starting point is 00:12:28 conspiracy and it often ends up with some form of anti-semitism. Yeah, there's a dude in my neighborhood who's always trying to get me to get on some sovereign citizen stuff. He's actually like an amazing dog trainer, but he's always got like his laminated documents in his backpack, you know, telling me he doesn't pay taxes and I don't pay taxes if I join up and he's like squatting in some townhouse he took over because his laws are different or something like that. Actually, I don't even know if he's a sovereign citizen or like a black nationalist offshoot, but nice guy, you know, he had a, like an eight-month-old Belgian Malinois
Starting point is 00:13:00 the last time I saw him and it was like impeccably trained. Just a beautiful dog. Yeah, I mean it usually comes down to a couple of things, right? It's either I don't want to pay tax or I'm an anti-Semmer. I would suggest that given the amount of time Zelensky's come up in the conversations with the guy who runs the Dominion
Starting point is 00:13:18 these days, I think it's probably a combination of both. There's a ton of micro-nations in Australia where the indigenous sovereignty movement seems to gather pace around a decade ago, which is really interesting. there are folks who claim territories to raise awareness about climate change like Grand Duke Travis McHenry, a US Navy vet who's cleaved off a big chunk of unclaimed Antarctica as West Arctic. Incidentally, on October 29, 2017, West Arctica, alongside its ally, King Timothy of the Kingdom of Shiloh in Scotland, launched a full-scale invasion of the nation of Calasahara
Starting point is 00:13:52 in the Central California-Karizzo Plain, deposing its despotic 12-year-old Viceroy Nicholas, who just happens to be Grand Duke's Travis' son. Anyway, there's a whole host of micronations that have grown out of local planning disputes, guys proclaiming an independent state to avoid paying a gas bill or hotel owners who don't want to pay tourist taxes, and it goes on. There's a BDSM resort in the town of Churner in the Czech Republic called the Other World Kingdom. There are kibbutzies and hippie communes, jokes and attempts to reinstate fallen bloodlines. There's famously Sealand in the UK, which is an old naval,
Starting point is 00:14:28 defense tower from the war. There's loads of things, smoke a joint, fall down a Wikipedia hole. It's pretty much, that's quite a good night. Anyway, there's a kind of micronation that exists alongside these, and that is one that exists to carry out fraud. Academic Robert Tillman sums it up well in his 2002 but global pirates, fooled in the offshore insurance industry, thrill a minute, read, which has a ton of fascinating stuff about these kind of scams. He likens the dominion of Melchazetic to the work of Herbert Williams, aka Little Bird on the Shoulder. Wishing you could be there live for the big game, soaking up the atmosphere of the crowd. But too often, life gets busy, or the price holds you back.
Starting point is 00:15:13 Priceline is here to help you make it happen. With millions of deals on flights, hotels, and rental cars, you can go see the game live. Don't just dream about the trip. Book it with Price Line. Download the Priceline app or visit Priceline.com. Actual prices may vary. Limited time offer. Where is Daredevil?
Starting point is 00:15:35 I'm right here. Don't miss the return of Marvel Television's Daredevil born again. So what's next? I'm going to take this city back. In an all-new season now streaming only on Disney Plus. They're hunting us. It's time we started hunting them. I can work with them.
Starting point is 00:15:56 This should be tons of fun. Marvel television's daredevil, born again, now streaming only on Disney Plus. Who in the 1970s creates something called the sovereign Cherokee nation out of a sandbar in the middle of the Rio Grande. Williams claims his self-style country has been made by a quote, act of God, but his plans for it are a little less grounded in the divine. Basically, he wants to make his own tax haven. I mean, who doesn't?
Starting point is 00:16:22 But, you know, I just want to point out, like, how much effort you put into these? They're basically writing a magazine feature here, and you do it like every other week. It's just, it's insane, man. Yeah, I mean, my son will grow up without a father, but at least we've got the podcast, so. This plays on the Rio Grande, this little sandbank. According to Tillman, it's taking, quote, offshore scams to the next logical step, rather than be independent upon foreign companies to issue them licenses for their phony insurance companies, banks, investment firms, why not create their own country and issue these licenses themselves?
Starting point is 00:16:58 Moreover, once the country has been created, why not sell the licenses to others? So, guys, are you getting the gist? Why not part cash in the Caymans when you can just create your own Caymans, and with it all the fake diplomas and licenses and passports and other goodies you can print, including in some cases currency? And I can't say exactly how I got into this story because I'm about to kind of go report it. But this stuff is huge, and it's happening all over the world. And having spent a week researching it, I've been pinging Danny on the WhatsApp trying to convince him we should do a Netflix show on him.
Starting point is 00:17:31 Thoughts on that? Yeah, we should just be getting paid at this point by a production house, just being in-house to come up with ideas. I mean, just if you're out there, all of our IP, it's all for sale. And yeah, it's a good scam. You know, why not? Like, instead of actually doing the scam yourselves, just sell credentials to other people so they can scam.
Starting point is 00:17:51 It makes a lot of sense. Definitely. Yeah. I mean, if guys are out there looking for a Netflix show in which the main character has already called the reporter a, I think it was like a mendacious servant of the devil, we're here, we're waiting. Anyway, there are several of these kind of micronations, right, the fraudy ones. The sovereign state of Aeona Lucina, there's tons of them have these dense Latin names. All the guys who start them are either into the Bible or into weird papal shit or they're just loners who spend entire days pouring over international law in DaVinciana. code. Ayrtona, Lucina is an Australian one and it sells doctorates and honours for almost 20 years until the death of its quote Supreme Lord Paul Neumann, a German migrant in the 90s. There was new utopia, a scratch of land in the Cayman Islands proclaimed by Howard Turney, or, as he preferred to be known, Prince Lazarus, which raised almost $100 million for bogus investments. I've left a link to it on the reading list. There's some real GeoCity's era wonderfulness going on
Starting point is 00:18:52 there on like, God, isn't the internet boring these days? And then there is the dominion of Melchazetic. And before I get into the crazy life of its founder, it is no coincidence that this thing ends up focused on the Pacific. The region, this region, where I currently am, is full of tiny states and others that are flung across thousands of nautical miles with vanishing populations and semi-existent government reach. Nauru, for example, it's got an area of just eight square miles and a population of under 11,000. A ton of these places have sovereignty disputes going way back before colonialism,
Starting point is 00:19:28 then they were overrun during the Second World War, became US Air Force staging posts or Japanese satraps, uninhabited or irradiated by nuclear testing, just like Fangatofa Atoe atoll, or even Bikini Atoe in the Marshals. It's all a bit of a mess. It's no surprise that Pacific nations are becoming vital transshipment points for cocaine and meth.
Starting point is 00:19:48 Yeah, is that, what's the route here? Is it like South America, to Australia. And I know cocaine is like $100 a gram there. It seems very profitable. Yeah, I think it's like a cocaine here is about four to 500 New Zealand dollars, which is at like 300 US dollars or something like this. I mean, the prices are unbelievable. So I think they are coming from South American. I'm trying to sort of dig into that a bit for a story further down the line. But yeah, like islands like Kidibati and Micronesia, Micronesia is a country, by the way, guys. And the Marshall Islands, like, they're just thousands of
Starting point is 00:20:20 islands where no one lives there. So they're just perfect. You just drop off a big ship and a co can leave it for a while. Anyway, these places have been frequent targets also the Westerners wanting to establish their own nations. In 1873, an American named Albert B. Steinberger washes up on the shores of Samoa, a collection of islands in the Pacific Ocean, claiming to be a quote, special agent of the United States. Right away, he begins establishing himself as a country's leader. In two years, Steinberger has appointed himself Premier and Chief Judge. He's written a constitution, including a law,
Starting point is 00:20:57 by which he personally receives a chunk of all tax payments. Oh, and he kindly sanctions the use of a government yacht to himself. In a strange twist of contemporary colonialism, Steinberger is actually stopped when the Sarmorans elist a crew of British sailors to capture and deport the American. So the Pacific knows these white-skinned chants as well. It may all seem laughable, but Tillman returns to a maxim of the American sociologist W.I. Thomas that, quote, if men define situations as real, they are real in their consequences.
Starting point is 00:21:31 Which I guess you could stretch to pretty much any religion organized or not. writes Tillman, quote, in the case of the dominion of Melchazetic, the fact that its existence as a legitimate country has always been in dispute has not prevented its self-proclaimed representatives from using its purported existence to engage not only in a wide variety of criminal activities, but political activities as well. And these activities have had very real consequences for others. But we'll get to the Dominions Pacific Island shenanigans later. Let's hop now back to 1990.
Starting point is 00:22:06 That's the year, a 28-year-old Texas entrepreneur named Jeffrey Reynolds found a company named California Pacific Bankers and Insurance Limited. Pretty okay. I mean, it claims to sell cut price. auto insurance, and it really is cut price. A large state provider might charge between a grand and 2.5K for a policy. California Pacific will do it for just under 500 bucks. Bit stinky. In 1993, authorities shut the firm down, not just because it's not paying out, because of course it ain't, but because Reynolds claims to be the Secretary of Commerce for a country called,
Starting point is 00:22:42 yes, the dominion of Melchazetic. And his company's licenses have been issued there. Officials point out, rightly that this country doesn't exist. Reynolds also claims that California Pacific has assets totaling $450 million, but regulators can't find a single one of them. Furthermore, the company's financial statement has been audited by a DC firm whose headquarters is listed as, quote, Sir Francis Drake Financial Centre, Malpello Island, Dominion of Melchazetic, Mid-Pacific. Its mailing address, the same as the Dominion Melchazette's U.S. Embassy, a PO box. California Pacific's employees include a man named Dallas Besant,
Starting point is 00:23:27 aka Chief Wise Otter, while its London representative is a well-known scam artist by the name of Matthew Bonner. That's his real name, no pseudonym required. I mean, I'm just thinking about how the only way to make insurance fraud interesting is to have a made-up country grifter doing it and to have the guy in charge be known as Mr. Boner. I mean, we finally stumbled on the fraud story that everyone can get behind. This doesn't get any less weird.
Starting point is 00:23:56 In 1996, Dallas officials charged Reynolds with fraud, shock. But he snaps back that they don't have jurisdiction. This is, after all, a dominion of Melchazetic affair, he tells them. And, by the way, here's a letter of recognition by none other than the proud government of the Central African Republic. No matter that around half a percentage point of the average mid-Texan can point to, the CIR and a map, it is definitely a real country. No, it is a real country. I spent a few weeks there. I've been to their embassy. I've been to their embassy in D.C.
Starting point is 00:24:30 get like a visa when I was going there. It's real. Is that one of those like embassies where it's just a flat above a flower shop? Actually, that literally is what the Burundian embassy is in Berlin. Yeah, it's kind of like that. I think it was like ground floor of a brownstone. But, you know, nice people. I'm sure. I'm through a tough time. Yeah, you did like, did some pretty amazing stuff there.
Starting point is 00:24:49 There was like, what was it, Muslims or Christians, there was a horrible civil war going on there, right? It was political, but it diverged into, yeah, religious conflict after a while, but it started off as a political conflict. Yeah, we should put some of that stuff up on the reading list too. It's really good. Nonetheless, anyway, Reynolds judge, that Texan guy, he just isn't buying it.
Starting point is 00:25:11 Reynolds is convicted and he's sentenced to 54 months in prison for the scheme. But Reynolds isn't alone. In 1994, a used car dealer named Leon Excalibur Houton III, the third of the proud Excalibur Houten clan, has three firms shut down in, yes, Texas. When complaints pour in that they're not paying out on bonds. I mean, honestly, if you're getting a policy from a guy named Leon Escaliber Houton III, come on, guys. When regulators peer inside Houton's network, everything leads to a dead end. Companies that don't exist, bonds conjured out of thin. everything is bogus.
Starting point is 00:25:49 Houton's main firm, Lifeguard Reinsurance, lists 15 million bucks in deposits from Asia-Pacific Bank and 20 million in bonds from St. Charles University in De Quincey, Louisiana. So you think he'd be good for the debt. But the St. Charles University President, Putin, and Asia Pacific Bank,
Starting point is 00:26:08 well, that's charted by, yes, the Dominion of Melchazetic. Operating out of California by a Manila-born woman whose life we are going to dive into on the second part of this show in a very big way. Putin, who's already been in trouble in the 80s for a scam involving an Oklahoma religious TV show and a prepaid dental plan. We're not going to go there. The top line's good enough. He said he's undergone a religious conversion to Mormonism, and he's already tried and failed to launch drug rehab clinics across Texas.
Starting point is 00:26:37 He also claims to be the former president of the Dominion of Melchazetic, before dying in 1996, although even Houton's ex-wife says she thinks he's faked it. Wait, so just to be clear, because I think some people might get a little lost, basically all the people you're mentioning now are scam artists, but they're not, like, in the...
Starting point is 00:26:56 They basically have scam by getting documents from the dominion of Melchazetic, right? Yeah, yeah. So this is what we mean by it being like a mothership for scam artists and commmen all around. I mean, it's the states at this point, but it's going to become wider. So they're just all picking up these fake licenses and diplomas and saying they're the president of what and what university and it's all linked to this dominion.
Starting point is 00:27:20 So I really thought you were going to jump in with a joke about faking it then, but then my. Anyway, what have authority stumbled on here? Well, it's something that's actually started over a decade previous. But incredibly, so far it had managed to fly under the radar. Now, the story of the dominion of Melchazetic actually begins back in 9. 1982. That year, David Pedley and his son Mark are convicted for a series of fraudulent land deals in Placeville, California, which is near Sacramento. While awaiting trial, however, the father-sum pair abscond and hot-step it across the Mexican border. According to official Dominion records,
Starting point is 00:28:01 quote, during their sojourn to Mexico, David and Mark founded a Saipan Class A bank that helped Mexicans convert fast-devaluating pesos into more than 8.8 million in US dollars. That's Saipan, by the way, the capital and largest of the northern Mariana Islands, a Pacific colony of the US, north of Guam and the Federated States of Micronesia. But you guys knew that already, didn't you? What lovely altruistic business. In fact, the pedleys have scammed holders of pesos out of an estimated $6 million and a Boston court sentences them to eight years prison and a 25 grand fine.
Starting point is 00:28:42 Mark Pedley, the son, is then arrested by Mexican officials for not renewing his visa permit, which, given all the other crazy fraud shit is into, that is pretty dumb. And he's deported to the US. Here's that SF weekly report again on the Pedley's. The pair perpetrated various acts of fraud in mystical symbiosis, sport. in matching Nazarene-style beards and long-flowing hair. They created their own version of the Bible, a cribbing of the King James translation, embroidered with idiosyncratic metaphysics.
Starting point is 00:29:17 In the so-called Melchazatechian Bible, sorry, guys, that is such a horrible word, the Holy Ghost is referred to as the, quote, scientific being. I mean, I reckon you really got to watch out for the guys growing their beards long and writing their own versions of the Bible while inside, like, keep them in the yard, make him shoot hoops and bench 250, whittled down pencils or some shit. But the Melchizedeatian, honestly, you can keep this in because like this word is disgusting. The Melchazadecian Bible is the word as quote, metaphorically translated by the pedleys.
Starting point is 00:29:51 Only God reveals Numenon and Phenomenon says it's Genesis 1.1, which I studied theology and that doesn't even make sense. It also appears to have been copied pretty heavily from a Hollywood faith leader of the time. That's a great job of Hollywood faith healer. I feel like good industry to get into recession proof. Exema is unpredictable. But you can flare less with ebbglis. A once-monthly treatment for moderate to severe eczema.
Starting point is 00:30:19 After an initial four-month or longer dosing phase, about four in 10 people taking ebbglis achieved itch relief and clear or almost clear skin at 16 weeks. And most of those people maintain skin that's still more clear at one year with monthly dosing. Ebglis, Librikizumab LBKZ, a 250 milligram per 2 milliliter injection is a prescription medicine used to treat adults and children 12 years of age and older who weigh at least 88 pounds or 40 kilograms with moderate to severe eczema. Also called atopic dermatitis that is not well controlled with prescription therapies used on the skin or topicals or who cannot use topical therapies. Ebglis can be used with or without topical corticosteroids. Don't use if you're allergic to ebbglis. Allergic reactions can occur that can be severe.
Starting point is 00:30:54 Eye problems can occur. Tell your doctor if you have new or worsening eye problems. You should not receive a live vaccine when treated without. Ebbglis. Before starting Ebbglis, tell your doctor if you have a parasitic infection. Ask your doctor about ebbglis.com or call 1800 lilyrx or 1,800 545-979. The best summer memories are made outside, and L.L. Bean has the clothing and gear you need to make these memories. Their effortless styles are created for summer spent outside with family and friends. Like hand-sown boat shoes, coastal cotton sweaters, rugged polos, and of course, the iconic boating tote.
Starting point is 00:31:29 which has been made right gear in Maine since 1944. LL Bean. Be an outsider. Visit LLBeen.com to learn more. Money to be made. Yeah, evergreen, evergreen. Briefly then, who is Melchazetic? Well, very briefly. His name literally means, quote,
Starting point is 00:31:49 King of righteousness. And he barely pops up in scripture, but he's a prominent figure. In the Bible, he rules over the city of Salem, which is Jerusalem, which is obviously a pretty big deal. He offers bread and wine to Abraham
Starting point is 00:32:01 after victory in battle, and he gets a massive tithe back. The biggest dildo for the Gnostics and millinarians who put Melchazetic on a pedestal for centuries is that in the New Testament, he's elevated to a kind of Christ figure, having no father or mother and, quote, resembling the son of God and remaining a priest, quote, forever.
Starting point is 00:32:20 So you could see why the crazies love him. But the most important detail of this new text that the father and son write is that it's priced at a bargain $24 for potential believers, which in today's mind, is a cool 75 bucks. David Pedley, the elder Pedley, he dies in prison while fighting extradition to the United States and copyright for the Melchazadecian Bible,
Starting point is 00:32:43 did it right, falls to Mark. The FBI actually shows up to David Pedley's funeral to make sure he's dead and to fingerprint the corpse, but Mark refuses to let them, and the family cremates the coffin before the agents can get a court order. A number of law enforcement agencies have since suggested that David actually bribed Mexican prison officials to fake his own death and stage a bogus funeral. And there have been several alleged sightings, very credible ones, including one in January
Starting point is 00:33:12 1999 in San Francisco, close to Mark's own residence. Eventually, Mark is released from Washington's Walla Walla State Penitentiary, and on the ride home, he has a, quote, revelation to be named Branch Vine Dresser. This comes from a verse from John 15, quote, I am the vine and my father is the vine dresser, which, all right, Mark, you're carrying the torturer old man, we get it. Part of this revealed wisdom is that Mark should found his own country. In 1990, the dominion of Melchazetic is born, and the carousel of crazy frauds like those of Jeffrey Reynolds and Leon Excalibur, blah, blah, blah, whatever his name is, kicks into gear.
Starting point is 00:33:52 Writes the Washington Post, quote, based more on tax laws than territory, Melchazetic may be the ultimate postmodern state. It appears to exist mainly so that money can be whisked through shell banks. It calls to mind the prophecy issued in the movie Network, that in the future, corporations would replace nations. It even has elements of performance art. Invent your own country for fun and profit. Let a thousand branch vine dressers bloom.
Starting point is 00:34:19 I really recommend you read the reading list for this one, guys, because there's some really cool stories. like 1990s American features are fucking shit hot. There are more. In 1995, a rakish Austrian calling himself, quote, Crown Prince Gerald Dennis Sain Wittgenstein, Hoenstein of Melchazetic, he strolls into a Hong Kong bank and successfully deposits a check, drawn on a bank in Melchazetic, of course, for $318,000.
Starting point is 00:34:49 That is a lot of cash. Cop snatches holiness, who turns out to be an unimmonement. employed 22-year-old Baker, whose real name is Gerhard Bacher, who spent the lion's share of the past month sleeping in the terminal of Kaitak Airport, as do so many European royals. It turns out this guy has been hopping all over Asia on a Melchazetic, quote, diplomatic passport, and he even has letters from Singapore and Malaysia saying that he can actually visit them. He has no such luck in Hong Kong, however. A court rejects his request for diplomatic immunity and appeals that he's just playing a big fat prank, all flat on their ass.
Starting point is 00:35:27 Quote, a fraud on the banking system in Hong Kong is a very serious business, one magistrate tells him, before sentencing him to a lengthy prison term. So this guy, he wasn't involved with the Pethys, right? He's just some randau who paid them for documents? From what I read, because this stuff is like early internet era, he paid them for documents, but he was also speaking to them. So they're kind of like, they're kind of like a club and a scamming circuit. like they all, they do seem to know each other.
Starting point is 00:35:56 And even though I've been sort of challenged on this by the guy who currently runs it, who seems to have a massive issue with Wikipedia, even though I told him it would be like Harry Carey to look at Wikipedia as a journalist. All of the stuff that he denies checks out under the most, like, tiniest of scrutiny. So yeah, they're like, they are a club, they're a group of so-called diplomats running around trying to scam everyone. They do know each other and the peddlies are at the top of the whole thing. So, Mark Pedley, the younger pedley, sorry, Branch Vine Dresser. He has by now, by this point, changed his name officially to Semak Ben David Netzer-Korim.
Starting point is 00:36:37 I'm trying to do the right like Hebrew are. And he shacked up with a Manila-born divalcy called Elvira Gamboa. They are a match made in con artistry heaven. Gamboa has already been dipping her toes in mining concerns and pretty weird ones at that that will get to later on. They share a love of the divine too, but more importantly, a love of cash, and they get to work setting up a homeland for the faithful that will duke from the mad to the magnificent. Meanwhile, the Dominion-related crimes just keep pouring in. Here's a cracked piece from last year, quote, at some point in the mid-90s, a man called John Gillespie arrived in the Philippines,
Starting point is 00:37:18 calling himself the Minister of Foreign Affairs for the Dominion of Melchazek. Gillespie and his accomplices were promoting a supposed citizenship by investment scheme where Filipinos could acquire Dominion passports in exchange for a one-time payment of $3,500. Many impoverished Filipinos parted with their life savings in the belief that their new passports would allow them to find lucrative work in America. And it continues, quote, others paid thousands in processing fees to apply for a government job in the Dominion itself. which was supposedly a wealthy country in the South Pacific. In reality, the Dominion was, of course, the fictional country dreamed up by Mark Pedley
Starting point is 00:38:02 slash Branch Vine Dresser on that bus years earlier. And Gillespie was hardly an experienced diplomat. In fact, he was a lifelong scammer who had fled Australia after serving a prison sentence for carrying out the country's most notorious horse makeover. Yeah, a horse makeover. After his release from prison, Gillespie joins the Dominion. government. Wait, wait, wait, wait, wait, what is a horse makeover?
Starting point is 00:38:28 You can't just move on and not explain what that is. So I read a little bit about this. I thought, God, there's so many tangents on this show already. But I think he was involved in like spray painting of a race horse and making it race other races or something like this. And he basically passed off a really good horse as a crap horse and poned a load of people on the betting money. It's quite well known in Australia apparently, but it's pretty nuts.
Starting point is 00:38:58 Again, I've left links to it, but my God, there's a lot of stuff going on here. Byndresser, by the way, at this point, he's back in the States running a company called Current Sea, with the sea, a bit like the ocean, get it, it's a bit sort of like, you know, Valley Tech company name. This claims to own 10% of the world seas, which is obviously legit. His plan is to use it as a vehicle for a so-called pump and dump penny-stop scheme. So think of Wolf of Wall Street and kind of field of dreams with a scraggly-haired Jesus figure at the helm. This kind of thing is where you take a shit penny stock company, pump its price by issuing a bunch of fake PRs or just telling your friends. And then you dump the stock when the tiny amount is worth per share, doubles or triples or whatever.
Starting point is 00:39:45 I mean, to be honest, if I was ever going to do crime, I think this is what I'd do. At one point currency has a whopping $500 million market cap, although it quickly snaps down to almost nothing. Man, it's a shame these guys didn't wait for crypto. I feel like they could have made tens of millions and gotten away with it. Yeah, I mean, this is essentially what crypto is, right? I mean, I might be, I don't know, oversimplifying it, but it's pretty much what most coins I've seen are.
Starting point is 00:40:10 Anyway, with that venture toppling, don't send me emails about that, guys. I'm not going to read them. Vine dresser tries mint in his own currency, which he says is backed by $400 million in platinum, only one bar of which he's shapply to show off at a time. He gets, quote, equicurrency listed in the financial pages of the International Herald Tribune with a total value of $10 billion. He also rents a Bloomberg terminal and lists it there, writes Tillman, quote, Thus, with a wave of his financial wand, Bindresser had created billions in assets for his mythical country.
Starting point is 00:40:45 I mean, this guy is actually pretty fucking sharp and I think he deserves our respect. Yeah, I'm not denying it. You don't write your own Bible and make your own country without a bit of now say. With the advent of the internet, this new country basically becomes a kind of scummy, agora or something awful,
Starting point is 00:41:02 you know, those great early forum sites, with Dominion aspirants checking in online for everything from amendments to the Constitution to updates on leadership and ecclesiastical pontifications from its House of Elders, which I guess is the DECD. Dominion's upper house. No wonder conmen come flocking in. Tons of companies share the Dominion's
Starting point is 00:41:21 U.S. Embassy address, the PO box. The embassy itself is just an answering phone that forwards calls to Vine Dresser in California. One of the Dominion followers at this time is a Las Vegas guy named Fred Cruz, who claims in the late 90s that his company owns $27 million worth of gold ore, which is really just a pile of dirt in a California warehouse, and $2.7 billion in assets, notes and currency from, yeah, of course, the Dominion. Isn't Ted Cruz's dad called Fred Cruz? I don't know. Cruise and his firm Countryland gets deeper in trouble when it attempts to buy fellow Vegas outfit jackpot enterprise inks casino, slot machine business, backed by this alleged Dominion cash, of course, making Cruz's Vegas firm's stock jump suddenly.
Starting point is 00:42:09 There's the pump and dump. And early investors get rich, obviously, from manipulated shares. Another Melchazetic associate, or perhaps graduate, is an American called Gilbert Ziegler, who enters Grenada on a Dominion passport in 1997 before getting a $20 million line of credit by showing authorities a picture of a ruby he says he owns. Not the ruby, the picture of the ruby. Pretty soon, Ziegler is running a weird combo, hotel and Ponzi scheme, scamming folks with promised returns of 300% for their investment, and he ends up getting $140 million.
Starting point is 00:42:47 And then he flees to Uganda, of course, lives in luxury and India-Armine's former mansion under the name Van A. Brink, of course. And then he's arrested in a bloody shootout with the Ugandan cops, gets extradite back to the UK, and dies in prison awaiting trials. Jesus, every single one of these guys is like a movie.
Starting point is 00:43:06 Yeah, this is what I'm telling you. This is why I've been pinging you on the fucking WhatsApp. This is amazing. We could just like do every single one. incredible. I mean, there's tons of these guys. I've left so much out. There's a Brit who establishes a fake Native American reservation, for example, something my Rolling Stone guy may or may not have done too. I hope the lawyers are fine with that, and that is nuts. I really wonder if he knew these folks. Here's an offshore alert report, quote, as alleged frauds, it would be
Starting point is 00:43:36 hard to conceive of anything more audacious than creating your own phony country, promoting it as a major offshore financial centre and charging people for banks and insurance licenses, IBCs, trusts and even bar qualifications. And why not throw in an international stock exchange with several listings of fake companies with fake trading all displayed on an elaborate website? Well, quite. But of course, at this point, the Dominion of Melchazetic is just a California townhouse and an answering machine.
Starting point is 00:44:09 Bindress's revelation was clear. he needs land. What do we always say here? Get into real estate. Branch Vine dresser, Mark Pedley, and his new boat, Elvira Gamboa, are going to take that maxim to insane new heights. In part two of this show,
Starting point is 00:44:26 the Dominion is going to truly go global, and it's going to come knocking on my door. Yeah, I mean, I hope you have your lawyers on retainer. I don't. Great. All the more reason for you guys to go to patreon.com slash the underworld podcast, or sign up on iTunes.
Starting point is 00:44:42 Until next week, thanks, Sean. Cheers. Some follow the noise. Bloomberg follows the money. Because behind every headline is a bottom line. Whether it's the funds fueling AI or crypto's trillion dollar swings,
Starting point is 00:46:05 there's a money side to every story. And when you see the money side, you understand what others miss. Get the money side of the story. Subscribe now at bloomberg.com.

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.