Hardy came to Japan with significant authority. At this time, U.S. policy towards Japan was at its strictest.
The goal was clear: weaken Japan.
Hardy had dismantled the foundation of the Japanese military industry, leaving the Japanese in a dire state. For the Americans, Hardy's actions were deemed correct and politically acceptable.
On October 1st, a historic event unfolded. The establishment of a powerful new entity in the East captured global attention.
Major newspapers worldwide reported on the formation of this new Eastern power, with headlines in publications like the Global Times, New York Times, The Times, and Le Figaro. Governments around the world were closely monitoring the situation, each with their own response.
The Soviet Union quickly reacted, establishing diplomatic relations, followed by Bulgaria, Romania, Hungary, Czechoslovakia, and others. In contrast, the United States imposed even stricter blockade measures. General MacArthur was ordered to dispatch more warships to enforce the blockade around the island.
On this day, Duncan approached Hardy with an update.
"Boss, Henry has reported that everything is ready. He's asking if you're ready to proceed."
Hardy nodded in agreement. It was time to begin.
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In the state of Wisconsin, Madison City, Mr. Judson, the owner of Judson Trading Company, drove to work after breakfast. Judson Trading Company, one of the largest in Madison, specialized in exporting grain, food, cotton, and other materials.
A few years prior, Judson had owned a small shoe factory. His fortunes changed dramatically when he saw a newspaper article about his cousin MacArthur becoming the Allied Commander in Japan. Judson traveled to Japan, and upon returning, he transitioned from the shoe business to trading, focusing on grain exports.
Judson secured hundreds of thousands of dollars in loans, shipped grain and food to Japan, and sold some of it on the black market. His first shipment earned him over $300,000 in pure profit, leading him to expand his trading operations significantly. He now managed at least two cargoes per month, with a portion of the goods sold through formal channels and the rest on the black market.
Due to the nature of his business, Judson's accounts and funds were difficult to track. He and his cousin MacArthur had established accounts in Hong Kong with HSBC to safely store their money. Judson opened two accounts: one in his name and another in MacArthur's second wife Joanne's name. The funds, totaling tens of millions of dollars, were kept abroad due to the high costs of money laundering and potential personal income tax if brought back to the U.S.
Judson's business flourished, and he continued to expand his operations, opening additional accounts in Switzerland, Cuba, and Brazil. Despite his success, the money remained hidden and untaxed.
However, when Judson arrived at his company one day, he was met by federal agents from the Internal Revenue Service.
"Mr. Judson, we are from the Federal Revenue Service. Please come with us to assist in an investigation."
Judson's heart sank. He knew the IRS's visit was a serious matter.
"I've always paid my taxes according to the law," he stammered. "There's no tax evasion."
The lead agent replied calmly, "We hope to resolve this without needing to use coercive measures."
Judson, fearing the worst, complied and accompanied the agents.
In the IRS interrogation room, Judson felt a chilling anxiety despite the October warmth.
"Mr. Judson, how many years have you been in the trading business?" someone asked.
"More than four years."
"And where do you typically sell your goods?"
Judson hesitated. "The primary market is Japan, with formal export documents."
The agent then asked, "Do you have any overseas accounts?"
Judson's heart raced. The agents clearly had evidence against him. Though he knew the law required U.S. citizens to report all income, including from overseas accounts, he denied having any such accounts.
The agent presented documents showing deposits in accounts in Cuba and Brazil, each amounting to millions of dollars. Judson's fear intensified as he realized they had undeniable proof.
He insisted on speaking to his lawyer, refusing to provide further information despite the mounting evidence against him.
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Hardy, having instructed Duncan to investigate MacArthur, later discovered through the black market connections that Judson was involved. Hardy then tasked Henry with a thorough investigation of Judson.
Henry's team used surveillance and investigation to uncover that Judson's funds were mainly held in HSBC in Hong Kong. Hardy was intrigued by this development and ordered a deeper investigation into HSBC, discovering more about MacArthur's financial dealings.
It became evident that MacArthur's cousin, Judson, and his wife had significant amounts of money hidden in multiple accounts. Hardy's findings revealed that MacArthur himself had gold holdings amounting to $10 million.
This information resonated with rumors about MacArthur receiving bribes to maintain the emperor's position and release war criminals. Though the bribe rumors had never been confirmed, the findings seemed to validate them.
Hardy was initially surprised by the scale of the gold holdings but soon realized that the amount was within expected ranges for such bribes. This insight reinforced Hardy's understanding of MacArthur's vast greed and corruption.
With this new information, Hardy planned his next steps, fully aware of the implications for MacArthur and the broader political landscape.