Throughout his life, Nichols was associated with various clandestine activities and maintained connections with high-level government officials, leading to speculations about his involvement in covert operations and alleged conspiracies such as Iran–Contra, the Inslaw affair, CIA drug trafficking, the 1980 October Surprise and the death of Danny Casolaro.
The company allegedly served as a front for clandestine activities, including intelligence operations, weapons smuggling and financial dealings connected to organized crime and the drug trade.
[5] Michael Riconosciuto, who was the vice president of Meridian Arms, confessed to have transformed the PROMIS software stolen by Inslaw into spyware.
He gathered intelligence until 1986 in nations including Nigeria, Saudi Arabia, Thailand, India, Japan, Mexico, Costa Rica, Haiti, Norway and France.
He is said to have introduced Israel to a secret shadow market of the Federal Reserve that supposedly exists and in which intelligence services, organized crime and high finance enrich themselves illegally, by selling treasury notes at a discount to select insiders and laundering the profits over charities.
[1][9] Israel allegedly paid Nichols $10 million to locate a secret treasury note that was an IOU for gold worth $250 billion.
Nichols named John Prescott Ellis as involved in the scheme and claimed that George Soros got his money on this black market.