The National Bureau of Investigation Report

Dated: (NBI) June 1995

Retyped by Jason Zambale, Subic, Zambales

DISPOSITION FORM:

When answering please refer to security classification (if any)

Corresponding Entry No. SUBJECT: MICHAEL J. CLARKE

(Alleged Paedophile)

TO: RD, NCR

FROM: M. ESPARTERO, A. SUAREZ & VILLANUEVA

This pertains to an investigation conducted, pursuant to the instruction of the Director on the newspaper (publication linking the NBI to a paedophile syndicate and naming a certain MICHAEL CLARKE, a British national as member of an international sex ring engaged in recruiting children for the purpose of child prostitution and inducing people to be clients of child prostitutes.

During the later part of the first week and the early part of the second week of June 1995, newspaper publications about the NBI involvement in an international sex ring almost stole from the limelight the case about the Kuratong Baleleng Gang alleged rubout. Almost all newspapers of local and national circulation published in bold black and white on the front pages the report that some NBI officers and agents were protecting an international sex syndicate as can be gleamed from the following different newspaper captions which, incidentally were also broadcast on the radio and shown on all television channels in Metro Manila and the provinces:

ARREST OF CHILD SEX TOUR PROTECTOR PRESSES (Annex A)

HERRERA, NBI MEN CODDLING SEX RING (Annex B)

NBI MEN PROTECTOR DAW PAEDOPHILE SYNDICATE (Annex C)

NBI EXEC AGENTS BEHIND SEX EXPORT – HERRERA (Annex D)

NBI MEN SA CHILD SEX RING PINATALUPAN (Annex E)

MAY PROBLEMA RIN ANG NBI (Annex F)

NBI MEN ACCUSED OF CODDLING GANG SELLING KIDS FOR SEX IN BRITAIN (Annex G)

NBI MEN GIGISAHIN SA CHILD SEX RING (Annex H)

DOJ ORDERS HUNT FOR SEX PROTECTORS (Annex I)

SEX GANG PROTECTOR UNDERS SIEGE (Annex J)

DOJ, SENAT TO PROBE NBI PROTECTORS OF INTERNATIONA SEX RING (Annex K)

NBI TINANINGAN NG 24 ORAS SA CILD SEX RING PROBE (Annex L)

NBI READY TO FACE HERRERA OF INTL SEX RING RAP (Annex M)

BID MOVES TO DETAIN BRITON IN SEX CASE (Annex N)

DON’T REPORT BRITISH IN SEX CASE, RETOLD (Annex O)

HC BRITON SEX STORE (Annex P)

BRITON IN SEX RING FACES DEORTATION (Annex Q)

With all the unsavoury publications about the NBI, the Director ordered the immediate check of the NBI records to find out the names of agents who are assigned to investigate cases on paedophiles. And the undersigned agents as a consequence thereof was directed to immediately submit a report on the cases he had handled.

Since 1994 up to present, only three cases involving paedophiles were referred to the National Capital Region (NCR) for appropriate action. These are:

The referral of the Department of Justice sometime in the early part of 1994 to check on the presence of a suspected paedophile in the island province of Marinduque. SRA ANTONIO SUAREZ and SJ GIL MICIANO who were assigned together with the undersigned to work on this case conducted the surveillance. The duo found the information to be not true anymore as the said alleged paedophile is now happily married to a Filipina and had settled down in that province for good.

The request of Fr. SHAY CULLEN of PREDA FOUNDATION of Olongapo City sometime in March 1994 to arrest a suspected paedophile who was then making arrangements to have a young girl for sex with his undercover operative who posed as a pimp in Barretto, Olongapo City. The arrest did not materialized as the undercover operative of Fr. Shay Cullen who promised to provide the girl for this alleged paedophile failed to get the girl who was acceptable to him.

The request of Fr. SHAY CULLEN sometime in November 1994 for assurance in the rescue of young American from Olongapo City who was allegedly being kept among other young girls by a German paedophile in a house at the Glorietta Subdivision in Pasig, Metro Manila. The undersigned Agent, together with SA RUEL LASATA, SRA ANTONIO SUAREZ, SJ NIDA VILLANUEVA and GIL MICIANO and a certain ROLLY an undercover operative and member of the staff of Fr. Shay Cullen who led the team to the place conducted the surveillance for a possible immediate rescue operation or for the purpose of applying for a search warrant. Our efforts turned out, however, to be fruitless as no Amerisian, no young girls and no paedophile were seen in the address pointed to by ROLLY, the undercover agent of Fr. Shay Cullen. Later, the undersigned learned from Rolly that the mother of the alleged victim had already talked to her daughter who expresses willingness to go home and not proceed with her desire to go abroad.

A report on the above-mentioned operation had earlier been submitted to the Director, copy of which is hereto attached as (Annex R).

From the newspaper publication it could be defined that it was FR. SHAY CULLEN who complained to Senator ERNESTO HERERRA that NBI Agents including a ranking regional office allegedly were tipping off the sex ring so that when their group asked the NBI team to help them conduct surveillance in Manila and Olongapo, the suspect and the children disappeared. It is very clear also that it was FR. SHAY CULLEN who told Senator HERERRA that NBI men are protectors of a paedophile syndicate. Obviously he was referring to the undersigned Agent and other agents of NCR including the chief.

The Director apparently irked by the report immediately directed our Olongapo City Sub-Office (OLSO) Agents to bring to Manila MICHAEL CLARKE, a British national, who is allegedly a paedophile doing his trade in Olongapo City, Angeles City and La Union for confrontation with the agents.

On the morning of June 6, 1995 OLSO NBI Agents who chanced upon MICHAEL CLARKE whiling away his time at a Sari-sari Store in Baloy Beach, Olongapo City, invited him to come to our office for interview. He was turned over to the Director who asked him searching questions pertaining to his activities in the Philippines and regarding the alleged involvement of some NBI men. After finding nothing to link his Agents to the alleged Paedophile syndicate, the Director turned over said MICHAEL CLARKE to the undersigned Agent for an in-depth investigation regarding his activities in the Philippines.

MICHAEL CLARKE denied having known and NBI agent or official and vehemently denied being paedophile or having sold or induced anyone to have sex with young girls. On the other hand, FR. SHAY CULLEN who also came to the office of the Director, revealed that MICHAEL CLARKE had admitted, in an interview, having induced some British nationals to have sex with young girls and he promised to submit to the undersigned agent copies of the video and audio tapes of the interview together with the corresponding affidavits of the persons who took the tapes. Until now, however, despite several promises, Fr. SHAY CULLEN failed to make good of his commitment. In fact, the undersigned agent on the suggestion of Fr. SHAY CULLEN prepared a written request but to no avail. Copy of this request is hereto attached as (Annex S).

At this juncture, Bureau of Immigration and Deportation agents came and presented an Order of Arrest  (Annex T) issued against Michael Clarke ordering his immediate detention to face deportation proceeding for allegedly being an undesirable alien.

In an interview at the NCR, MICHAEL CLARKE disclosed that he arrived for the first time in the Philippines on February 4 1995 with BRUCE TEASDALE, a friend whom he met in Thailand sometime in 1993. They came to the Philippines purely for a holiday and stayed at the Vistillana Hotel in Balibago, Angeles City. During their stay in Angeles City they took time to go to Baloy Beach in Olongapo City for two days. While in Baloy Beach, he befriended CARLITO BALOY and FRANCISCO PEREZ with whom he talked about anything. It was during his friendly conversations with FRANCISCO PEREZ when he though of doing business by inviting friends and interesting persons in their country to come and tour the Philippines particularly Angeles City, Olongapo City and La Union. In doing so he would be earning an income as a travel operator and additional income from operators of hotels, beach resorts and bars of the Philippines who would also give him certain amount of percentage as commission for very tourist that he would bring to their place. After he returned to England on February 5, 1995 he immediately established the PARADISE EXPRESS, a business firm organized to promote travel to the Philippines, concentrating solely on Angeles City, Olongapo City and La Union. Brochures (Annex U) pictures and warm ups depicting the Philippines as a “Fantasy Island” were printed and sent to friends and acquaintances all over England. He also advertised his new business in national newspaper duly approved by the advertising standards in their country. As a result thereof, every interesting parties inquired by telephone day and night. On April 28th 1995 inspired by favourable response of potential tourists, he came back to the Philippines to clear way for the otherwise promising business enterprise thus he put up. Before he left to the Philippines, two clients who introduced themselves as TAYLOR and a friend telephoned him day and night asking leading questions about the Philippines. Some of the questions they asked of him were:

a. Are the girls in the Philippines beautiful?

b. Is it possible for the girls to be their companions during their holiday?

c. Do you have any photographs of the girls?

d. Do you have any photographs of nude girls preferably young girls?

Mr. TAYLOR told him that money is not a problem and they wanted young girls and insisted on asking their photographs. When he told them that if you have money you can buy anything, they immediately came to his office and bought a round trip ticket to the Philippines. Two days after he arrived in Angeles City his first two clients also arrived and he welcomed them at the Southern Star Hotel in Balibago, Angeles City. On their first day, he escorted them to the different places in Angeles City especially to the different bars and karaoke joints in the place. The next day he went alone to Baloy Beach Olongapo City to see Francisco Perez. At Baloy Beach they talked about business and agreed to organize a group of excursionists from Angeles City that would avail of the facilities of the cottages of Francisco Perez and he would a have video coverage of this excursion which he intended to be shown to prospective tourists in England. As they were talking in the beach cottage of Francisco Perez his two clients from London arrived and demanded. “MICHAEL WE ARE IN THE PHILIPPINES. WHERE ARE THE YOUNG GIRLS TO FUCK?” In reply by way of a joke, he pointed to the young girls on the beach who were having a picnic with their families, but as he pointed to them, his clients – who turned out to be T.V. reporters from England on undercover operation to entrap him in the company of young girls or in the act of offering young girls to clients for sex – took pictures of him and the children on the beach. Thereafter, newspaper publications and radio televisions stories came out all over the country branding him as a paedophile engaged in child sex trade.

In the meantime, Fr. Shay Cullen through Senator ERNESTO HERERRA submitted videotape allegedly on the activities of MICHAEL CLARKE. Undersigned agents together with four legal officers viewed the tape for the purpose of evaluating its evidentiary value. However, nothing on the tape were seen which would warrant the filing of criminal charges against said MICHAEL CLARKE

LYNETTE MAY DELORIA, the information officer of Sen. ERNESTO HERERRA who was responsible for some of the press releases about this case and who was monitoring our investigation promised to contact the witnesses and submit affidavits and tapes to support the charges against MICHAEL CLARKE, but until now, just like Fr. Shay CULLEN failed to make good of the promise to present or submit evidence.

To check on the statements of MICHAEL CLARKE, the undersigned agents together with SRA Antonio Suarez and SJ Nida Villanueva went to Angeles City and Olongapo City to interview the people with whom Michael CLARKE had in one way or another, talked or to dealt with. Our interviews with different persons, includes Mrs. Teresita Fong, the owner of Vistillana Hotel, JUN BENEPAYO, a travel agent at the Vistillana Hotel, Oscar Maricundo, the caretaker of Flamingo Apartment Annex where the girlfriend of Michael Clarke, Jeff Duncan, the General Manager of Southern Palms Beach resort in Bauang, La Union. Francisco Perez and Carlito Baloy of Baloy Beach, Olongapo City. Front desk employee of Southern Star Hotel who was very well known to Michael Clarke and several floor managers and receptionists and waitresses the at the different cocktail lounge, bars, karaoke bars, ago-go bars and restaurants in Angeles City among these are the Executive golf, Executive lounge, Woodys, Temple of Rock, Ziggy’s, Queen of Happy Hooker, Queen of Diamond Lounge and Bars and Dreams Ago-go Bar, Margaretvilles Restaurant and Pub and the karaoke Omae in Balibago, Angeles City gathered nothing that would establish that MICHAEL CLARKE as a paedophile or is engaged in recruiting children or inducing someone to have sex with children. In fact, one Lani Gondan, a floor manager (mamasang) at one of the bars mentioned that MICHAEL CLARKE refused when he was given a 21-year-old girl and preferred a 35 year old as a drinking partner in the bar.

CLAIRE BULAN, a 28 year old girlfriend of MICHAEL CLARKE with whom the latter lived together in her apartment for one week until he was invited by NBI agents and arrested by BID agents, said that MICHAEL CLARKE is not a gay, a paedophile, or in any way engaged in the business of selling, inducing or offering young girls for sex. Claire Bulan surrendered with the consent of Michael Clarke, all belongings, of Michael Clarke including documents regarding his person and business for inspection and security to find out if there is anything that will link him to the charges mentioned above. These documents included among others are the following:

A poster entitled “ A CHANCE OF A LIFETIME” about the Paradise Express party/excursion to Baloy Long Beach, Barretto, Olongapo City (Annex V).

A write-up entitled Angeles City, Philippines Island Holidays the ultimate Adult Disney World (Annex W).

A write-up entitled Angeles City, Philippines the ultimate holiday for adventurous men, stay “n” save program produced and marketed by Paradise Express (Annex X).

A Xerox copy of Eastbourne Herald Newspaper dated May 20 1995 bearing newspaper caption entitled “CHILD SEX HOLIDAYS T.V. TRAP” (Annex Y) and Eastbourne Gazette dated May 31 1995 bearing newspaper publication entitled “CHILD SEX NOW MAN’S DEATH FEAR” (Annex Z).

Brochure entitled Angeles City, Philippines Island Holidays the ultimate Adult Disney World, produced and promoted by Paradise Express (Annex).

A photograph of Michael Clarke and Bruce Teasdale together with the girls in Balibago, Angeles City (Annex BB).

A handwritten advertisement entitled Angeles City, Philippines (Annex CC)

A letter addressed to Michael Clarke from Mrs. Gloria Kerr of Queen of Diamond Lounge (Annex DD).

Again nothing was uncovered from these documents, which would show that MICHAEL CLARKE is a paedophile or is engaged in child sex trade.

Indeed, there is nothing in the posters or in the brochures distributed by Michael Clarke, which would mean that he is inducing clients to have sex with children in the Philippines. The only portion in the brochure which may interpreted as dealing with young girls is the portion which reads:

“Come a short jeep ride into “SIN CITY” to a very special establishment the OK CORRAL where dozens of headstrong fillies are tottered. At 10PM you choose your mount returning to the beach for an all night supper-bash (booze and food on lap) the following morning you return your filly and head back to Angeles for yet another day in Paradise. In case you feel the need for a “lay down our private beach cabin is freely available”.

Young girls as used by Michael Clarke could mean girls above 18 years old who still look young. Note that these girls who are working at the nightspots in Olongapo City are with working permits and therefore must be at the age allowed to work under the law. Aside from this nothing could be gleamed from the brochure, which would in any way mean that MICHAEL CLARKE violated the law on the special protection of the children against child abuse. Apparently the girls he was referring to in his brochure are the ago-go dancers and receptionists in the bars with working permits who may be taken as partners by customers. But this is just the natural cause of business to Angeles City and Olongapo City even without Michael Clarke. Definitely, however, nothing was gathered to establish the fat that Michael Clarke recruited young girls below 18 years of age and offered them to clients for sex. What he did was simply to include in his brochure the existing amenities offered by the different night clubs, bars and other entertainments in Olongapo City and Angeles City to attract more male tourists but not actually or solely for the purpose of sex. This can be deducted from the following documents recovered from the possession MICHAEL CLARKE or his girlfriend Claire Bulan and from Mr. Jeff Duncan, General Manager of Southern Palms Beach resort herein marked as (Annexes EE – EE2)

Also attached is the photograph of MICHAEL CLARKE and his only child JESSICA (Annex FF) names and addresses of persons we have contacted in Angeles City (Annex GG). Perusal of these documents yielded nothing, which would prove in any way the charges that Michael Clarke is a paedophile or is engaged in any form of business constituting child abuse.

Likewise, attached as part of the report are the Affidavit (Annex HH) of Claire Bulan girlfriend of Michael Clarke and the Sworn Statement (Annex II) of Bruce James Teasdale friend of Michael Clarke. In their respective statements they said nothing, which would establish that Michael Clarke is a paedophile or a member of child sex syndicate.

Xerox copy of the passport of Michael Clarke who showed that he was already overstayed in the Philippines as a tourist and the passport of his friend Bruce Teasdale are hereto attached as (Annexes KK and LL) respectively.

Also attached as part of this report, is the press release (Annex OO) addressed to agent MAMERTO ESPARTERO informing later that Michael Clarke has a gun.

AGENTS COMMENTS:

There is no truth to the report that NBI men are protecting paedophiles and has been “tipping off” the syndicate so every time there was an operation the result was always negative. Fr. Shay Cullen who made these allegations made a big lie and acted, as he is not a Christian. Indeed he is so unfair, unjust and very much unbecoming as a priest.

Likewise, there is no truth in the report that MICHAEL CLARKE, a British tourist in the Philippines is a paedophile or is engaged in child sex tour business. MICHAEL CLARKE simply tried to attract tourists to Angeles City and Olongapo City by promoting the already existing amenities in the different nightspots and beaches at these places. He simply wanted to earn something from tourists who would book with his company the Paradise Express and get additional income from the owners of the different establishments in the Philippines who promised him a certain amount of incentive for every tourist that he would bring to their place. Definitely, however, MICHAEL CLARKE did not recruit girls below 18 years of age for sex nor induce anyone to have sex with girls below 18 years of age.

24 The reports about NBI agents protecting paedophiles and about MICHAEL CLARKE as a paedophile is the workings of Fr. Shay Cullen who obviously only wanted publicity to get more foreign support or donations for his foundation in Olongapo City. And he is doing this at the expense of the NBI. Note that he has an edifice in Olongapo City more beautiful than a castle in Europe. Where does he get all the money to construct this?

FR. SHAY CULLEN thinks that he has the monopoly of knowledge on what is to be done to fight child abuse in the Philippines and as such as he dictates on what to do. Another disregard of the fact that NBI agents have the training in the investigation, arrest and prosecution of any violators of law. Worse is that when Fr. Shay Cullen does not get what he wants or what he says he would use his column in the newspaper or his connection with the high government officials to denounce the agents working on the case as what had happened to our Supervising agent Magno Britannico of Olongapo City Sub-Office. In this connection, the report of Supervising agent BRITANICO about a paedophile in Olongapo City and about Fr. Shay Cullen is herein made an integral part of this report and marked as (Annex PP).

26 Based on the result of this investigation and on the report of Supervising Agent MAGNO BRITANICO, Fr. Shay Cullen may be deported for being undesirable alien.

he report about MICHAEL CLARKE having a gun is not also true. The undersigned agents are already in possession of the alleged gun of Michael Clarke, but the same is just a toy gun.

RECOMMENDATION:

IN VIEW OF THE FOREGOING, it is respectfully recommended that this case, for lack of evidence to establish truth, be considered closed and terminated and that this report together with the report of Supervising Agent Magno Britannico be forwarded to out legal and evaluation division for study as to the possibility of initiating deportation proceedings against FR. SHAY CULLEN.

RESPECTFULLY SUBMITTED:

HA. MAMERTO ESPARTERO

SRA. ANTONIO SUAREZ

SJ. NIDA VILLANUEVA