bank never became involved in traditional merchant banking activities like equity investment or mortgage financing; instead, its principals sought all manner of unconventional investment opportunities, including gun running and attempts to corner various commodities markets, such as Malaysian rubber and Indonesian oil. Its Cayman Islands subsidiary also provided tax avoidance and evasion schemes. The Nugan Hand Bank gained respectability by the recruitment of a number of retired senior U.S. military and intelligence personnel, such as former Rear Admiral Earl P. Yates as bank president and ex-CIA head William Colby as legal counsel. Australian trucking magnate Peter Abeles was also connected with the bank. Bernie Houghton became the bank's Saudi Arabian representative; but eventually had to flee that country in a hail of bullets, as depositors sought to recover their money. Michael Hand had formed a close business and social relationship with former Sydney police constable and underworld "patron", Murray Stewart Riley. From April 1976, Hand initiated five cash transfers totaling $295,000 to the Hong Kong office. Riley's subordinates used these funds to buy heroin that was then shipped to Australia. Upon Riley's advice, Hand opened branches in Thailand "to attract drug money" and two years later, ordered the destruction of all incriminating records relating to Riley's money transfers. Scandal and collapse The bank's collapse was precipitated by the death of its founder Frank Nugan in the early hours of 27 January 1980. Nugan, who was facing charges of stock fraud, was found shot dead by a .30-calibre rifle in his Mercedes-Benz outside Lithgow, New South Wales. An inquest later returned a verdict of suicide. However, questions remain unanswered in regard to the lack of fingerprints on the weapon and the probability that the police who found Nugan had prior knowledge of his death. Suspicions about the bank's activities grew in subsequent days as details of the contents of Nugan's car emerged. Of special interest was the business card of William Colby. Furthermore, Nugan's office had been ransacked, and Hand and Yates had ordered important company files destroyed or hidden elsewhere. Peter Butt states that Brian Alexander, who was on bail facing charges related to the Mr Asia drug syndicate, accompanied investigators when they searched the deceased Nugan's home. During the search, the investigators were interrupted by police officers who were responding to an anonymous phone caller who had claimed that police were in trouble at the residence. As a result,