The Smoking Gun 
September 17, 2012
In remarks stressing that the U.S. government had “absolutely nothing to do with” the anti-Islam film that has touched off violence in the Middle East, Secretary of State Hillary Clinton yesterday sought to quash Arab concerns that the “disgusting and reprehensible” movie was somehow produced or condoned by American officials.
However, Clinton’s attempt to distance the U.S. from “Innocence of Muslims”–and, by extension, its felonious producer–may be complicated by the revelation that Nakoula Basseley Nakoula became a government informant after his 2009 arrest for bank fraud, The Smoking Gun has learned.
Though many key documents from the U.S. District Court case remain sealed, a June 2010 sentencing transcript  provides an account of Nakoula’s cooperation with federal investigators in Los Angeles (and how his prison sentence was reduced as a result).
Nakoula, 55, was arrested in June 2009 for his role in a check-kiting ring that stole nearly $800,000 from six financial institutions by using stolen Social Security numbers and identities. Nakoula was named in a six-count felony indictment accusing him and unnamed “co-schemers” of perpetrating the bank fraud.
Full story here.