John Bernard Kihm III entered the Naval Submarine service in 1954. He was later transferred to Naval Intelligence where he worked with the Central Intelligence Agency, according to a 2021 obituary. As part of his cover, he started the Prudential Mortgage Company and became a real estate broker in 1958. Kihm was discharged from the Navy in 1962, the obituary continues, and signed a 75-year non-disclosure statement, “agreeing to take what he did for the government to his grave and he has done that.”
In his later years, Mr. Kihm was a professional actor. He appeared in a variety of productions under the name Jack Seal.
FBI records responsive to John Bernard Kihm III (1936-2021) were recently obtained by Expanding Frontiers Research. The Bureau stated in a Feb. 13 interim response 76 pages were reviewed and 51 pages were being released. Other Government Agencies, or OGAs, were being consulted about responsive documents, FBI explained, adding that some records may have been destroyed.
FBI records from the 1970s reflect Bureau concerns Kihm may have obtained sensitive documents or information as the result of an alleged impersonation. Mr. Kihm is documented as using multiple aliases, including the names Kihn and Kine, reasons for which are not overtly stated in the material released. The suspected impersonations seem to have been at least somewhat related to business ventures launched by Kihm, particularly including the questionably titled “National Security Agency,” later referred to as the National Security and Investigation Agency.
The FBI discovered through investigation conducted in 1977 that the California Department of Justice was “very familiar” with Mr. Kihm. The Bureau was further advised the Los Angeles Police Department, Criminal Conspiracy Section, was conducting an investigation into Kihm's possession of “numerous weapons and possibly explosives.” No circumstances were identified at that point of Kihm obtaining anything of value as a result of alleged impersonation:
The Bureau learned Kihm had an extensive history of intoxication and violence. Charges included drunk driving, trespassing, burglary, and assault with intent to commit murder, among several more, but, for whatever reasons, offenses were often dropped. The files contain several references to questionable circumstances surrounding weapons and Kihm's seemingly inflated sense of self-importance.
A 1977 FBI memo documented Kihm had been described as a “gun nut” and “mentally unbalanced.” The memo clarified he should be considered armed and dangerous when approached:
It seems noteworthy the records obtained did not include background checks from the 1950s or 1960s, circumstances we might expect to find in FBI files of a former Cold War intelligence asset. It should be equally considered, however, that Bureau investigation for security clearance might be among the records withheld or destroyed. That is not a typical practice in this writer's experience with such FBI documents, but we simply do not know the entirety of the circumstances and exactly what we are looking at here.
FOIA Exemptions cited for the withholding of records, which includes redactions on pages partially released as well as justification for the 25 pages withheld in full, were b3, b6, b7C, b7D, and b7E. An overview of the exemptions (as provided by the FBI) shows how those cited are related to privacy issues, including circumstances surrounding confidential sources, law enforcement investigations, and similar matters. EFR promptly appealed the redactions and withholding of records other than direct references to personal identifiable information or, in other words, EFR argued everything should be released except names that are properly exempt from disclosure under the Freedom of Information Act.
Bell Mortgage Company
Interestingly, in 1975 the CIA was sued by Miami mortgage broker Andres Castro. The lawsuit sought $10 million in damages. Named with the CIA in the suit were Guillermo Iglesias and Antonio Yglesias, described by the San Francisco Examiner as Cuban exiles who participated in the 1961 Bay of Pigs failed invasion and, in the case of Yglesias, trained commandos for the CIA. The two were also reported to have set up offices for a year-and-a-half at Castro's Bell Mortgage Company, though their whereabouts were unknown at the time the 1975 article was published. Andres Castro (no relation to Fidel Castro) claimed he participated in a scam selling counterfeit mortgages with the men because they approached him to do so in 1973 on behalf of the CIA. The alleged purpose was to raise needed funds. Castro claimed his business was ruined while some $3 million was funneled to the CIA.
Knowledge of the scam was denied by the CIA and the case was eventually dismissed. However, and fascinatingly, the Agency reportedly acknowledged Iglesias and Yglesias were indeed assets, it just denied they were acting on its behalf during their interactions with Castro and Bell Mortgage. Andres Castro would later be indicted along with a business partner for his role in the scam, while the two CIA operatives were not named in the proceedings, though they were reported to have been sought - apparently unsuccessfully - in the U.S. and abroad.
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