[1] News stories suggested that the bank had been involved in illegal activities, including drug smuggling, arms deals, and providing a front for the United States Central Intelligence Agency.
Speculation grew when it became known that the bank had employed a number of retired United States military and intelligence officers, including former CIA director William Colby.
[5] The Nugan Hand Bank attracted investors with promises of up to 16% interest rates on their deposits and assurances of anonymity, tax-free accounts, specialist investment assistance, along with more surreptitious services such as money laundering.
[8] Bernie Houghton became the bank's Saudi Arabian representative;[9] but eventually had to flee that country in a hail of bullets, as depositors sought to recover their money.
[10] Michael Hand had formed a close business and social relationship with former Sydney police constable and underworld "patron", Murray Stewart Riley.
[13] 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.
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.
[15] 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.
[24] The Commission accepted Colby's evidence that he was merely giving legal advice to Nugan and Hand relating to either or both of them taking up residence in the United States.
[31] Politician and judge, John Dowd, stated that Nugan Hand became the vehicle to quietly move drug industry money.
[32] Similarly, former NSW Attorney General, Frank Walker, insisted that from the government's perspective, having good relations between ASIO and the CIA was more important than bringing criminals to justice.
[34] Revelations by the American defence industry employee, Christopher Boyce, initiated speculation that the CIA and Nugan Hand had also played some part in the dismissal of Australian Prime Minister, Gough Whitlam.
For instance, William Blum (1999) states inter alia, that the bank allegedly transferred $2.4 million to the Liberal Party of Australia which contested two forced elections in 1974 and 1975 to oust Whitlam's Labor government.
NSW Corporate Affairs investigators, Geoffrey Nicholson and Rick Porter, in association with the Nugan Hand liquidator, John O'Brien, requested documents from the FBI and also the CIA.
[38] In 1981, Prime Minister Malcolm Fraser, who had hoped the Nugan Hand controversy would fade away, stood before the parliament and told the Australian public that the CIA had no interest in the bank.
[45] In Ross Coulthart's 60 Minutes (Nine Network, Australia) segment, he approached Hand as he was leaving a chemist shop in Idaho Falls.