Tag: offshore banking
Danziger Draws

Danziger Draws

Jeff Danziger lives in New York City. He is represented by CWS Syndicate and the Washington Post Writers Group. He is the recipient of the Herblock Prize and the Thomas Nast (Landau) Prize. He served in the US Army in Vietnam and was awarded the Bronze Star and the Air Medal. He has published eleven books of cartoons and one novel. Visit him at DanzigerCartoons.

Panama Papers Reveal Scandalous Hypocrisy

Panama Papers Reveal Scandalous Hypocrisy

It’s always educational to observe the behavior of wildlife in their natural habitat. For example, we learn that there’s nothing more vicious than a wild animal that’s cornered. I would add that there’s nothing more devious than a top political or corporate official caught in a scandalous hypocrisy.

We’re now bearing witness to this latter phenomenon, for a whole menagerie of political critters have recently been screeching and scrambling after being backed into a corner by the “Panama Papers.” This is a trove of thousands of internet documents leaked to global media outlets, revealing that assorted billionaires, rich celebrities, corporate chieftains, and — yes — pious public officials have been hiding their wealth and dodging the taxes they owe by stashing their cash in foreign tax havens. Of course, we’ve known for a while that tax dodging is a common plutocratic scam, but the details from the leaked files of an obscure Panamanian law firm named Mossack Fonseca now gives us names to shame.

One is David Cameron, the ardently conservative prime minister of Britain, who has loudly declaimed tax sneaks in public. But — oops! — Now we learn that his own super-wealthy father was a Mossack Fonseca client, and that David himself has profited from the stealth wealth he inherited from the elder Cameron’s secret stash.

Trapped by the facts, the snarling, privileged prime minister used middle-class commoners as his shield, asserting that critics of his secluded wealth are trying to “tax anyone who [wants] to pass on their home… to their children.” Uh-uh, David – we merely want to tax those who try to pass-off tax frauds on the public.

One of Cameron’s partisans even claimed that critics “hate anybody who has a hint of wealth in them.” No, it’s the gross, self-serving hypocrisy of the elites that people hate. Yet now, doubling down on their hypocrisy, Cameron & Company have announced that they’ll host an anticorruption summit meeting to address the problem of offshore tax evaders!

The global web of corruption involving thousands of superrich tax dodgers and money launderers that the Panama Paper reveal is an explosive scandal — yet, interestingly, very few names of the moneyed elite in our country have surfaced as players in Mossack Fonseca’s Panamanian shell game. Perhaps US billionaires and corporations are just more honest than those elsewhere.

Ha-ha-ha, just kidding! Not more honest, just luckier. You see, America’s conniving richies don’t have to go to Panama to set up an offshore flim flam — they have the convenience of hiding their money and wrongdoings in secret accounts created right here in states like Delaware and Nevada.

The “New York Times” notes that it’s easier in some states to form a dummy money corporation than it is to get a fishing license. Indeed, the ease of doing it, and the state laws that provide strict secrecy for those hiding money, have made the U.S.A. a global magnet for international elites wanting to conceal billions of dollars from their own tax collectors, prosecutors… and general public.

State officials in Delaware even travel to Brazil, Israel, Spain and other nations to tell “the Delaware story,” inviting rich foreign interests to stash their cash in corporate hideaways that the state sets up, no questions asked. Likewise, Nevada flashes a dazzling neon sign inviting the global rich to incorporate their very own shell corporations there, promising — shhhh — “minimal reporting and disclosing requirements.” The money-hiding industry is so hot in Nevada that it attracted none other than Mossack Fonseca to get in the action by opening a branch office there.

The law firm is being branded as a criminal enterprise for the rich. OK, but it shares that shameful brand with our own state governments.

To find out more about Jim Hightower, and read features by other Creators Syndicate writers and cartoonists, visit the Creators Web page at www.creators.com.

COPYRIGHT 2016 CREATORS.COM

Photo: Wikimedia Commons.

Huge Document Leak Exposes How The Wealthy And Powerful Hide Money

Huge Document Leak Exposes How The Wealthy And Powerful Hide Money

Kevin G. Hall and Marisa Taylor
McClatchy Washington Bureau
Posted with permission from Tribune Content Agency

WASHINGTON — A massive leak of documents has blown open a window on the vast, murky world of shell companies, providing an extraordinary look at how the wealthy and powerful conceal their money.

Twelve current and former world leaders maintain offshore shell companies. Close friends of Russian leader Vladimir Putin have funneled as much as $2 billion through banks and offshore companies.

Those exposed in the leak include the prime ministers of Iceland and Pakistan, an alleged bagman for Syrian President Bashar Assad, a close friend of Mexican President Enrique Pena Nieto and companies linked to the family of Chinese President Xi Jinping.

Add to those the monarchs of Saudi Arabia and Morocco; Middle Eastern royalty; leaders of FIFA, the international body that controls international soccer; and 29 billionaires included in Forbes Magazine’s list of the world’s 500 richest people.

Also mentioned are 61 relatives and associates of current country leaders, and 128 ther current or former politicians and public officials.

The leak exposes a trail of dark money flowing through the global financial system, stripping national treasuries of tax revenue.

The data breach occurred at a little-known but powerful Panamanian law firm, Mossack Fonseca & Co., which has an office in Las Vegas, a representative in Miami and presence in more than 35 other places around the world.

The firm is one of the world’s top five creators of shell companies, which can have legitimate business uses but can also be used to dodge taxes and launder money.

More than 11.5 million emails, financial spreadsheets, client records, passports and corporate registries were obtained in the leak, which was delivered to the Suddeutsche Zeitung newspaper in Munich, Germany. In turn, the newspaper shared the data with the Washington-based International Consortium of Investigative Journalists.

Several McClatchy journalists joined more than 370 journalists from 78 countries in the largest media collaboration ever undertaken after a leak.

The document archive contains 2.6 terabytes of data.

As a registered agent, the Mossack Fonseca law firm incorporates companies in tax havens worldwide for a fee. It has avoided close scrutiny from U.S. law enforcement officials.

Mossack Fonseca denied all accusations of illegal activity.

“We have not once in nearly 40 years of operation been charged with criminal wrongdoing,” spokesman Carlos Sousa said. “We’re proud of the work we do, notwithstanding recent and willful attempts by some to mischaracterize it.”

The law firm’s co-founder, Ramon Fonseca, in an interview last month on Panamanian television, said blaming Mossack Fonseca for what people do with their companies would be like blaming an automaker “for an accident or if the car was used in a robbery.”

Yet plenty of criminals are named the documents, like drug traffickers and convicted fraudsters.

“The offshore world is the parallel universe of the ultrarich and ultrapowerful,” said Jack Blum, a white-collar crime attorney and an architect of the Foreign Corrupt Practices Act.

The archive, which dates to the late 1970s and extends through December 2015, reveals that 14,000 intermediaries and middlemen bring business to Mossack Fonseca.

No part of the world is untouched, including the United States.

States such as Delaware, Nevada and Wyoming register thousands of corporations annually, often without identifying the true owners. Some of the billions of dollars moving through the domestic economy come from anonymous foreigners who inflate real estate prices in places like Miami, buying properties outright in cash.

“We know (of) upwards to $6 to $10 billion a year laundered through the U.S.,” said Patrick Fallon Jr., head of the FBI’s financial crimes section.

The most extraordinary allegations in the archive revolve around Putin’s closest associates, including Sergey Roldugin), a close friend since the late 1970s when Putin was a young KGB agent.

Roldugin is a cellist for the St. Petersburg orchestra, yet his name appears as the owner of offshore companies that have rights to loans worth hundreds of millions of dollars. A Russian news service report in 2010 disclosed that he owned at least 3 percent of Bank Rossiya, Russia’s most important bank.

When Mossack Fonseca helped open a bank account in Switzerland on behalf of Roldugin, the application form asked if he had “any relation to PEPs (politically exposed persons) or VIPs.”

The one-word answer was, “No.” Yet, Roldugin is godfather to Putin’s daughter Mariya.

“Roldugin is, by his proximity to a serving head of state, clearly an exposed person,” Mark Pieth, a former head of the Swiss justice ministry’s organized crime division, told the ICIJ team.

The documents show how in 2008 a company controlled by Roldugin had influence over Russia’s largest truck maker Kamaz, joining with several other offshore companies to help another Putin insider acquire majority control of the company. They wanted foreign investment, and German carmaker Daimler later that year bought a 10 percent stake in Kamaz for $250 million.

The offshore company that connects many Putin loyalists is Sandalwood Continental Limited in the British Virgin Islands. Roldugin was a shareholder until 2012, as was Oleg Gordin, a little-known businessman whom incorporation documents describe as linked to “law enforcement agencies.”

The files also mention a company co-owned by Putin friend Yury Kovalchuk, the largest shareholder of Bank Rossiya. Kovalchuk was among those targeted by U.S. sanctions in 2014 in retribution for Russia’s invasion of Crimea. Another friend, Arkady Rotenberg, Putin’s judo partner and a billionaire construction mogul, openly obtained companies through Mossack Fonseca. The Treasury Department, when sanctioning him in 2014, suggested that the oligarch acted on behalf of “a senior official.”

That was widely believed to mean Putin, whose fingerprints were not on any offshore company.

“When you are the president of Russia, you don’t need a written contract. You are the law,” said Karen Dawisha, an academic, former State Department official and author of the acclaimed 2014 book “Putin’s Kleptocracy: Who Owns Russia?”

A Kremlin spokesman, Dmitry Peskov, said last week that ICIJ was publishing a “series of fibs” that amounted to a media “attack” on Putin. Peskov suggested that unknown “organizations and services” were behind the media reports.

https://www.publicintegrity.org/node/19492/syndication/tracking

This report contains information gathered by reporters working under the umbrella of the nonprofit International Consortium for Investigative Journalists.

Photo: Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009.  REUTERS/Rick Wilking