In 1985 he witnessed[clarification needed] a group within the government, including Oliver North, Bud McFarlane, certain members of the National Security Council, and others attempting to run the Iran arms-for-hostages trade using the CIA. He told his superior Clair George that the Iran Contra trade was a disaster in the making, as he did not trust Manucher Ghorbanifar or the Israelis pushing the scheme, and he viewed the people like North as the "lunatic fringe" who had earlier tried to bring bizarre ideas into the Afghan war. Avrakotos also warned George that the scheme was illegal and wrote a notable memo distributed within the CIA to that effect.