Monday, September 30, 2013

BEWARE OF THE ALLEGED IRANIAN TRANSPARENCY

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock
 




DO NOT EXPECT TO GET A PASS IF YOU FACILITATE IRANIAN SANCTIONS EVASION


Please do not let your guard down regarding efforts by bank clients to make a huge profit, by an end run around existing sanctions against Iran. Notwithstanding the media blitz on the "transparency" exhibited by the new Iranian President, there is no slackening in sanctions evasions enforcement.
 
The facts on the ground show what is really happening.The Iranian regime still poses a clear and present danger to the United States, and some of their actions are publicly disclosed.
 
One case in point: The IRGC Quds Force, its overseas arm, is reportedly behind major espionage efforts. A Belgian national, of Iranian extraction, was arrested in Israel, in the possession of several photographs of the American Embassy there. He had taken several prior trips to Israel, and is believed to have attempted to organize a spy ring.
 
If there is a new, transparent Iran, why does it send spies to take pictures of the American Embassy ? As I said, remain vigilant regarding any possible sanctions evasion activity of your bank clients.
 
 
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FINANCIAL CRIME IN PANAMA OUT OF CONTROL

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock



FATF SHOULD BRING BACK THE NCCT LIST, AND NAME THE REPUBLIC OF PANAMA



The Financial Action Task Force (FATF) no longer "names & shames" the jurisdictions where money laundering and terrorist financing run rampant, but I believe that it is time to return to that highly effective practice, and my first candidate is the Republic of Panama, where, in my humble opinion, financial crime, and especially money laundering and terrorist financing, are out of control.
 
Why Panama first and foremost ? Here are but a few of the red flags that I am aware of:
 
(1) Money laundering of criminal profits, especially those originating from Venezuela and Colombia, into and through major Panamanian banks, is widespread.
 
(2) Enforcement of the existing anti-money laundering laws is virtually non-existent.
 
(3) A number of prominent, and sanctioned, Latin American and Middle Eastern and terrorist groups are moving money through Panamanian banks; some even have permanent account relationships there. Funds from some groups are then transferred to Beirut, and others to offshore tax haven countries; some money even enters the United States, where it could forseeably fund terrorist actions.
 
(4) The Venezuelan air bridge, business jets transporting illicit bulk cash, and arriving regularly at Panamanian general aviation airports, operates without any serious interference from local law enforcement.
 
(5) Foreign nationals who are the victims of financial crime in Panama rarely obtain justice, through the corrupt criminal court system. The perpetrator's laundering of his illegally-acquired wealth, is never prosecuted in Panama.
 
(6) The involvement,  of Panamanian PEPs, including several at the ministerial level, in corrupt conduct, taints any serious efforts to reign in financial crime.
 
(7) The powerful Syrian Organized Crime cartel, which owns several banks, and has placed key people in most important government agencies, operates free of any government interference.
 
There are many more, I think it is high time to Bring back the NCCT List, and place Panama on it, so that US and EU banks can govern themselves accordingly.



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PANAMA PARADISE TO VENEZUELAN LAUNDERERS

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock
 



VENEZUELAN MONEY LAUNDERERS CONTINUE TO THRIVE IN PANAMA



If you were able to line up all the money launderers practicing their dark art in the Republic of Panama, you would find that a large portion of them are Venezuelan nationals.
 
While for the undersigned to name them would only invite libel actions, it is important to understand who they are, and why they find Panama City to be such a user-friendly place for laundrymen.
 
Which Venezuelans are engaged in money laundering ? Running down the list, I see:
 
 (1) A number of them are Caracas attorneys, serving their clients' needs, albeit illegally.
 (2) Venezuelan PEPs, individuals closely linked to corrupt members of the Maduro regime, who are moving government funds stolen or illegally diverted, as well as bribes and kickbacks, for their associates in government, who cannot be seen depositing dirty money.
 (3) Laundrymen working for narcotics traffickers, whether they be Venezuelan or Colombian.
 (4) Bankers, some of whom have close correspondent relationships with Panamanian banks, or even branches, affiliates, subsidiaries, or related companies in the country.
 
(5) Terrorist financiers for local Hezbollah and Hamas agents, and those working for assorted other sanctioned terrorist groups, including the FARC and ELN. 
 
(6) Money launderers whose task is to clean Iranian capital, and pay for shipments of goods that will be evading global sanctions on Iran, through deliveries to third countries, and subsequent transfer to Iran.
 
So, why Panama for Venezuelans ? Little or no identification of Beneficial Ownership, or requirement that Source of Funds be disclosed, a friendly Spanish-speaking legal and financial community, a large number of foreign embassies and consulates in the capital, the presence of international banks there, and  a total lack of government enforcement of the laws governing transport of cash or financial instruments into Panama.
 
Venezuelan money launderers will continue to clean the criminal proceeds of their clients in Panama, until and unless some law enforcement agency comes in and makes it so difficult for them to operate, that the laundrymen take their business elsewhere.
 
 
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NEW US$ 100 BILL COMING SOON

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock



NEXT GENERATION US$100 BILL TO BE RELEASED OCTOBER 8 


After much delay, the latest version of the $100 bill, with enhanced security features, is scheduled for national release on October 8.
Those readers who remember my article on the theft, last October, of the Federal shipment of the new $100 notes, while en route from the airport in Philadelphia, to a storage center in New Jersey, are probably wondering of the thieves have been impatiently hoarding their booty for the past year, waiting for this day, or whether they have already fenced them.
 
In any event, if you are not familiar with the new bill, check out the illustration above.
 
 
 
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Friday, September 27, 2013

PETER KONIGSBERG IMPLICATED IN MADDOF PONZI SCHEME ARRESTED

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock


A SECOND ACCOUNTANT INVOLVED IN MADOFF PONZI SCHEME INDICTED
 
When a Ponzi scheme implodes, many of the professionals involved in maintaining the fiction of a legitimate enterprise, or otherwise using their expertise to aid and abet the fraud, find themselves charged with their fraudster clients.
 
Peter Konigsberg, a New York accountant, was arrested this week; he allegedly conspired to falsify records and statements, and was closely associated with Bernard Madoff's $17bn fraud. As an outside accountant, he also represented a number of Madoff investors. Another accountant,  Madoff's auditor, has already pled guilty in his case.
 
He was reportedly the only no-Madoff family member to own any portion of the criminal enterprise's London office. Released on $2m bond, Konigsberg'a indictment is part of a larger case, involving several other Madoff conspirators.
 
 

 
 
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Thursday, September 26, 2013

PAKISTAN IS A HELL HOLE FOR TERRORISTS | MONTE FRIESNER


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock



WATCH PAKISTAN EARTHQUAKE RELIEF PAYMENTS CLOSELY FOR TERRORIST FUNDING
 
This week's natural disaster in Pakistan, already with 400 estimated dead, will spawn extensive international charitable relief action.
 
While most of it will be bona fide, there may be a few bogus "charities" sending funds. or goods, whose end users will not be earthquake victims, but terrorist organizations.
 
Watch carefully any unknown charity, or charitable organization with a name deceptively similar to one of the reputable ones, or even newly-formed entities, for disguised payments to designated terrorist organizations, payable through fronts.
 
In the chaos post-disaster, the last thing anyone is thinking about is terrorist financing. Do not make that mistake.
 
Vet any charitable organization not known to you or your associates, lest you end up under investigation for sending funds to a radical Islamic organization on the sanctions list.
 
Is the recipient well-known as a facilitator of charitable relief ? Could it be a thinly-constructed front for terrorists ?
 
Enhanced Due Diligence is the order of the day, and ignore the sender's pleas for immediate clearance, for the sake of the victims, lest you become a victim of a different sort.
 
 
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PANAMA INFORMANT TRICKS CONFESSION OUT OF ALASKA DOCTOR


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~


SNITCH IN PANAMA WITH STOCK FRAUD CASE IN USA ENTRAPS TAX EVADER FOR LESS PRISON TIME

Thanks to the U.S.A. crackdown on offshore tax evaders, it’s gotten harder to hide money from your ex-spouse. Striking evidence of that comes from a lawsuit the U.S.
 
Attorney for the Central District of California filed last month after Homeland Security Investigation
Agents seized $4.7 million from a Bank of America account in the State of Washington allegedly belonging to an Alaska M.D. intent on depriving his ex-wife of assets the court said she was due.
 
In a previously unreported “complaint for forfeiture” that reads like the plot for a B-movie, the government says Anchorage plastic surgeon Michael D. Brandner was in the middle of a contested divorce in May, 2008, when he drove from Alaska to Panama (more than 6,000 miles, according to Google maps) and deposited cashiers’ checks totalling $3.25 million into an account at Capital Bank in Panama.
 
In June 2008, after the Alaska court ordered Brandner to turn over his $1.26 million self-directed IRA held at Pensco Trust Co. to his wife, he moved that money to an account at  Bank of America in California, and then to the Panama account at Capital Bank, the government says.  Later, he shifted an additional $200,000 to Panama.
 
Here’s where the government’s offshore crackdown comes in: Back in 2008, when the doc first allegedly moved money to Panama, the Central American country was a notorious haven from both the Internal Revenue Service and legitimate creditors.
 
But in November 2010, in a bid to win Congressional approval of a Free Trade Agreement, Panama signed a tax cooperation and information exchange agreement with the U.S.
 
In May 2011, Dr. Brandner’s  Panamanian advisor—who it turns out, was cooperating with  U.S. authorities in a separate U.S. stock fraud case—warned him the tax treaty might affect his ability to keep assets hidden from his wife. The "Snitch" convinced Brandner that the best way to protect his money going forward would be to put it in a U.S. bank account ostensibly owned by a foreign corporation.
 
The doctor followed this dubious advice, and in August 2011 opened an account in the name of the foreign corporation at a Bank of America branch near SeaTac airport in Washington State.
 
By Sep. 12, 2011, he had wire-transferred all the money from Panama  at Capital Bank  to go to the Bank of America account, and Homeland Security swooped in and seized it.
 
Compounding the 63-year-old doctor’s potential legal problems:  The "Informant" reminded Brandner (during a conversation monitored by law enforcement) that he had told him he needed to file an FBAR form reporting his foreign account to the Treasury.
 
The doctor, according to the government, acknowledged that he knew he had to file an FBAR and said he hadn’t done so—-a violation that makes the funds subject to forfeiture. (The government also alleges it can keep the money for violations of the federal wire fraud statutes.)
 
The Informant is known to WANTED SA and the name will be released accordingly.
 
 
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Wednesday, September 25, 2013

TD BANK COMPLIANCE OFFICER SLEEPING ON JOB


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock
 
 
 
TWO FINAL POINTS TO PONDER REGARDNG TD BANK AND ITS PONZI SCHEME CLIENT
 
Two final thoughts that still bother me about the Scott Rothstein Ponzi scheme and his principal banker:
 
(1) How could the entire TD Bank compliance department ignore all those hits from the bank's AML software ? Obviously, someone in senior management trumped compliance. Why is he not being held accountable ?
 
 (2) The $52m fine, according to one of the lawyers for the Ponzi victims, is insufficient, as it represents only a drop in the bucket, when compared to the bank's annual profit; he's right.  Next time, how about a real punishment.


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CAPITAL BANK OF PANAMA ACCEPTS DR. MICHAEL D. BRANDNER "DIRTY MONEY" WITH REFERENCE FROM CO-CONSPIRATOR


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~



CAPITAL BANK OF PANAMA (NOT CONNECTED WITH OTHER CAPITAL BANKS) IS UNDER INVESTIGATION FOR MONEY LAUNDERING
 
In a previously unreported "complaint for forfeiture" that reads like the plot for a B-movie, the government says Anchorage plastic surgeon Michael D. Brandner was in the middle of a contested divorce in May, 2008, when he drove from Alaska to Panama (more than 6,000 miles, according to Google maps) and deposited cashiers' checks totalling $3.25 million into an account at Capital Bank in Panama with the help of a well connected business man who is now a Confidential Informant and does not want to go to prison.
 
This well connected business man was "The Snitch" who needed to implicate Brandner because the Snitch himself was in a criminal action involving Stock Fraud in the USA and needed to give evidence to the USA in order to obtain a lesser conviction and sentence.
 
Later, the story says, Brandner, 63, moved another $1.5 million to Panama. He ultimately got in trouble with the U.S. government, the story says, when he shifted all the money into a Bank of America account in the State of Washington in the name of a foreign corporation, and the money was seized.
 
The Snitch who lives in Panama entrapped Brandner to implicated himself and Brandner is now indicted.
 
More to follow on this story and the release of the name of the Snitch.
 
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PANAMA CO CONSPIRATOR HELPS LAUNDER OVER $4.5 MILLION USD FOR ALASKA DOCTOR

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~




ALASKA PLASTIC SURGEON INDICTED BY ANCHORAGE GRAND JURY ON WIRE FRAUD CHARGES
 
A 64-year-old Anchorage plastic surgeon, Dr. Michael Brandner, was indicted by a Federal Grand Jury on Friday on wire fraud charges in connection with a scheme to defraud his wife and the Alaska State Courts in divorce proceedings.
 
It is alleged in the Grand Jury indictment that Brandner drove more than 6,000 miles from Alaska to Panama and transferred over $4,000,000 out of the United States in 2007 and 2008 in a scheme to defraud his wife during their divorce.
 
After transferring the funds, Brandner submitted false documents to the court claiming that he had loaned the funds to a foreign entity and so the money was unavailable to be dispursed in the divorce proceedings.
 
He well may have gotten away with his scheme, but in November of 2010, Panama signed a Tax Cooperation and Information Exchange Agreement with the United States.
 
In 2011, on the advise of his Panamanian advisor, Brandner secretly returned the money to the United States and deposited the funds in a Bank of America account using the name of a shell corporation.
 
The conversation between his advisor and Brandner was secretly taped as the advisor was working with the U.S. government on another case.
 
During that conversation, Brandner admitted that he had not filed a FBAR form reporting the foreign account to the Department of Treasury. Failing to do so, subjects the funds to seizure.
 
The money, totaling $4,656,061.85, was seized in Irvine, California. That money is now subject to forfeiture proceedings in a Los Angeles Federal Court.
 
According to Assistant U.S. Attorney Bryan Schroder, who presented the case to the Grand Jury, Brandner faces a maximum prison sentence of 20 years and a $250,000 if convicted of the charges.
 
The investigation was conducted by the Internal Revenue Service and ICE's Homeland Security Investigations.
 
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Tuesday, September 24, 2013

FOREIGN BANKS CLOSING IN PANAMA


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock
 




WHY ARE FOREIGN BANKS LEAVING PANAMA ?
 
Are foreign banks exiting the Republic of Panama because of FATCA, or for some other reason ? In recent months, we have seen the sale of certain foreign banks, and the announced closure of others.

I have difficulty believing that the motivating factor is the onset of FATCA, as they could simply close all their accounts of American citizens or residents; There's something more to this.

Are foreign banks leaving because they fear that Panama's future will not be as bright as its government has predicted ? Or because they are concerned about the retreat from democracy and neglect of the rule of law that seems to be the order of the day in Panama City ?

Whatever it is, possible political turmoil in the future, new and probably unwanted attention, directed by international law enforcement at the financial community, or some reason to rise risk levels to a point where further bank operation is deemed dangerous, we need to watch Panama closely for signs of trouble.

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ROYAL BANK OF CANADA CLOSES OFFICE IN URUGUAY BECAUSE COUNTRY NOT SAFE

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~



CANADIAN BANK ABANDONS URUGUAY FOLLOWING RAID ON ITS OFFICE ON REQUEST FROM ARGENTINE JUDGE

The Royal Bank of Canada, RBC, is abandoning Uruguay following a raid in its offices at Zonamerica ordered by a Uruguayan magistrate on request from Argentina during which computers, documents on clients and even cell phones from staff were seized by the intervening party which included on-watching Argentine treasury police.
 
The official version is that the bank is leaving as part of a major ‘restructuring process of its interest in Latinamerica”. With this purpose the head of the bank’s emerging markets office, Barend Jansses visited Montevideo to inform staff of the decision which was later communicated to clients.
 
As part of the ‘strategic review’ of the bank’s business in Latinamerica, RBC’ “Wealth Management”, it was decided “to close offices in Montevideo as of 31 October 2013”.
 
The raid last June on the bank’s offices was part of a major operation in several financial institutions in Buenos Aires with alleged connections in Montevideo referred to alleged money laundering schemes in the transfer of South American soccer players involving tens of millions of dollars.
 
The raid and sequestration was ordered by Uruguay’s Organized Crime magistrate Adriana de los Santos on request from her peer in Buenos Aries, Argentine federal judge Norberto Oyarbide.
 
RBC pointed out that the judicial investigation in its Uruguay offices is an ‘independent issue’ and the bank will continue to work with the authorities to clear it. So far there have been no irregularities claims against RBC or any RBC staff.
 
“The office in Montevideo will remain fully operational until next 31 October to enable a smooth and orderly transition both for staff and clients, providing all the available information together with a high level of service and professional advice all along the transition period”.
 
Despite the announced deadline of 31 October, the RBC affiliate in Uruguay will remain active until all clients’ accounts have been transferred.
 
RBC clients can remain and transfer their accounts to the bank’s offices in North America or Europe, which currently serve “more than 90% of RBC Latinamerican clients, or transfer to other financial institution.
 
Nevertheless RBC remains committed to the Latinamerica market as is has done successfully for over a century, said RBC sources.
 
But despite RBC elegant exit from Uruguay, the rest of financial institutions are not happy, rather concerned since the court seizure sets a ‘bad record’ and sows mistrust among bank clients.
 
In effect Magistrate de los Santos reacting to the negative echo of her decision to allow Argentine experts to go through all the computers, documents and cell phones seized revoked the original decision and limited the activity only to “Uruguayan experts”.
 
For that purpose a special committee was named with experts from the Judiciary branch and the Executive’s Anti-laundering assets office.
 
Furthermore given the high sensitivity of the acting magistrate’s decisions which in effect involved providing Argentina with information of all of the bank’s clients in its Uruguayan office, the Supreme Court asked de los Santos to inform by writing of the procedure and raid.
 
To make things worse during the raid Argentine treasury police and other staff were present.
Julio de Brum Executive Director of the Uruguayan Private Banks’ association said the raid caused
“great concern” and warned of the ‘bad signal’ which affects “the image of the country’s banking system’.
 
“The bank raid was done just like if it was in any retail shop looking for contraband”, said de Brun. “We are not questioning the court, but the raid was badly implemented: staff was even frisked and their cell phones seized”.
 
“The most logic thing would have been to involve Central bank staff; they know what to look for, and with no major repercussions: the whole thing could have been avoided following Uruguayan law and tradition”, said Alberto Varela, tax law expert.
 
The raids on request from Argentine Judge Oyarbide included not only RBC in Zonamerica but also three financial institutions in the World Trade Centre; both locations work on a special free-zone status with certain benefits under Uruguayan law.
 
The simultaneous raids took place on 13 June and on 28 June the Uruguayan central bank suspended the licence of Argentine based Alhec Group to operate in Uruguay.
 
On 8 August the team of Uruguayan experts looking into the seized material returned 27 of the 45 computers.
 
Meanwhile Orlando Dovat, head of Zonamerica has insistently requested the Uruguayan government releases a message of calm and certainty to the financial community following the raids.
 
“It is essential for quick action and that government sends a strong message of support to the financial system” said Dovat, adding that “we must not forget that these institutions depend from overseas headquarters and there is concern. The government, the minister, the central bank must transmit a message of certainty”.
 
“This situation can not be repeated. The RBC incident was badly managed”, pointed out Dovat who suggested “a protocol to which judges must keep in such situations, which I believe is the responsibility of the Central bank” or on the other hand “clarify the tax exchange understanding with Argentina because it is quite confusing regarding tax and criminal law”, and there were excesses committed.
 
 
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TD BANK PAYS ANOTHER FINE

  
FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock



TD BANK RECEIVES $52m FINE FROM OCC & SEC

Just when you thought the worst was over for beleaguered TD Bank, the proverbial roof falls in. The Office of the Comptroller of the Currency, and the Securities & Exchange Commission, have levied a $52.5 civil penalty upon the bank, through a stipulated Consent Order.

The funds are to be paid as follows: 

(1) $37.5m to the SEC. 

(2) $15m to the OCC.
The Consent order is short on information, but the two principal violations are stated; 

(A) Failure to file Suspicious Activity Reports (SARS). 

(B)  Deceiving the investors into believing that the funds were safe.

 Readers who want to review the complete text of the Order can find it here*.
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 *Consent Order for a Civil Money Penalty; Case Numbe AA-EC-2013-67



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Monday, September 23, 2013

VENEZUELA MAJOR COCAINE DISTRIBUITOR

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA   ~Contributed & Written by Kenneth Rijock ~


SEIZED TON OF COCAINE, ARRIVING FROM VENEZUELA, CONFIRMS RAMPANT CORRUPTION
  
The seizure of 1.4 metric tons of cocaine, which arrived in Paris, from Caracas, on an Air France airliner, should put to rest all questions concerning the extent of government-supported drug trafficking in the Bolivarian Republic of Venezuela.
 
Arrested were a Venezuelan National Guard officer, and two non-commissioned officers, two UK, and two Italian nationals; a reliable source reported that some of the participants were from the Middle East.
 
The drugs were placed within 30 suitcases, marked with the names of individuals who were not on the flight manifest. Some of the drugs were allowed to leave the airport, and were interdicted en route to Luxembourg.
 
The fact such a huge cache of narcotics was allowed to enter the airport, and be loaded, with bogus name tags, on an international flight, should remove any illusions you may have about the Government of Venezuela. Any counter-drug programs that it has are only window dressing, and are totally ineffective, on purpose.
 
Facilitating narcotics shipments represents significant income for the Maduro Regime, and its military, and law enforcement, is actively involved in the international transport of drugs, into and through, Venezuela, on its way to North America and Europe.
 
The Venezuelan National  Guard is said by most observers to be heavily involved in the transshipments.
 
As I have said before, you do not want to be doing business with Venezuela; the risk is far too high, and corruption is out of control.
 
 
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JOHN FLAVIO DOMINGUEZ FACING CRIMINAL CHARGES FOR "CAPTURING MONEY" IN PANAMA

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock

 
 
RELATIONSHIP MANAGER AT CREDIT CARD PROCESSING FIRM IN PANAMA IS FRAUDSTER AND EMBEZZLER
 
This is John Flavio Dominguez, who is currently a Relationship Manager at a major Panamanian credit card processing facility.
 
If your bank is using his services, be advised:
 
(1) He has criminal charges pending against him in the Republic of Panama. 
 
(2) He was dismissed from several banks in Panama, for embezzlement. 
 
(3) He is under criminal investigation for embezzling over $2m in Panama. 
 
(4) He is reportedly under investigation in the United States for theft of bank funds. 
 
(5) He allegedly destroyed evidence, and sabotaged a financial entity in Panama.
 
Inasmuch as criminal cases in Panama generally proceed very slowly, and are subject to political influence, the payment of bribes to government officials, and the delays typical to cases in the developing world, it may take years before justice is done, so it would be prudent to avoid this individual.
 
 
 
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IRAQ IS A CRIMINAL REGIME

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock



RAISE COUNTRY RISK ON IRAQ TO UNACCEPTABLE LEVELS

We have previously warned compliance officers to be wary of any significant transactions with Iraq, due to the river of dollars flowing to Iran, from both Baghdad and the Kurdish Region, but several disturbing actions taken by the Iraqi Government this year, in my humble opinion, disqualify Iraq for client investment, or for any other financial intercourse.

The risk of loss, or of default, or of major domestic problems, is just too high at this time; it is like a ticking time bomb, waiting to go off.

 These issues include:

 (1) The Government of Iraq has, more or less, violated all nineteen points of the Erbil Agreement, which served to level the playing field for Sunni and Kurdish groups.

 (2) The de facto  alliance with Iran.

 (3) Iraq's failure to condemn the war crimes of the Assad regime in Syria.

 (4) Allowing Iranian aircraft to overfly Iraqi airspace, carrying troops and arms to Syria, and lying to  the United States about it.

 (5) Tacitly ignoring the attack on the MEK camp. I am no friend of the MEK, but that was  just plain assassination.

 (6) Stating publicly that it will assist Iran to develop its nuclear program.

 (7) Storing Syrian chemical weapons, to keep them out of the reach of UN inspectors.

If your bank is continuing to have exposure, due to dealing with Iran, its banks, or its businesses, you are taking a tremendous risk that things will ultimately result in a substantial loss.


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KENYAN TERRORISTS MURDER INNOCENT PEOPLE IN MALL

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock
 
 
RAISE COUNTRY RISK ON KENYA
 
 
A terrorist attack on a major shopping mall in Nairobi has left an estimated 30 dead and 100 injured.
 
Al-Shabaab, the Islamist group seeking to seize power in neighboring Somalia, has claimed responsibility; the radical group had previously threatened Kenya for deploying its military in Somalia, in support of the provisional government, and defeating Al-Shabaab on the battlefield.
 
The attack, which is still ongoing, commenced with two explosions in the mall.
 
Al-Shabaab's action, in Kenya, has demonstrated that the designated terrorist group has targeted the country for retribution. Review the facts, and make your own assessment as to whether to raise Country Risk for Kenya at this time.
 
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Saturday, September 21, 2013

JP MORGAN BANK SELLING CREDIT CARD CUSTOMERS BOGUS SERVICES

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~


JP MORGAN PAYS US FEDERAL AUTHORITIES OVER $1 BILLION USD IN FINES & NO PRISON TERM FOR BANK EXECUTIVES FOR FRAUD RELATED OFFENCES

In the morning, the bank agreed to pay $920 million to four regulatory bodies to settle charges that arose out of the infamous “London whale” trade of 2012, which had already cost the country’s biggest bank some $6 billion in losses.
 
Then, in the afternoon, the Office of the Controller of the Currency — the primary regulator of federally chartered banks — and the Consumer Financial Protection Bureau — a relatively new regulator — announced that JPMorgan would pay fines of $80 million, plus $309 million in restitution, for selling credit card customers bogus services.
 
That’s $1.3 billion in fines and restitution in a one day, not to mention strongly worded statements by regulators, an admission of wrongdoing by JPMorgan, and promises by a humbled Dimon to do better.
 
How in the world did we get from there to here? “There” was five years ago, when financial cataclysm threatened — and JPMorgan was the one institution that avoided the missteps that brought low so many others. It was heralded as the best-managed bank, with Dimon the best chief executive.
 
Now, that same bank, run by that same man, has become a piñata for government regulators; even with Thursday’s settlements, there are still a half-dozen investigations under way. Let me suggest a few possible reasons:
 
The bank was never as well-managed at it appeared. On one level, JPMorgan raises the broad question of whether any of the big, sprawling, systemically important banks can truly be managed. But there are also issues that are particular to JPMorgan.
 
The fact that the London whale trades were being marked differently by two areas of the bank suggests that something was seriously awry. Ditto the investigation regulators opened last September, resulting in a cease-and-desist order a few months later, into whether JPMorgan had appropriate safeguards against money laundering.
 
That kind of compliance is part of the blocking and tackling of the banking business. Only now is the bank hiring thousands of compliance officers who should have been in place years ago.
 
Unlucky timing. American Banker asked an interesting question the other day: what would have happened if the London Whale trades had taken place in 2009, rather than 2012?
 
Almost certainly, the government’s response wouldn’t have been nearly as severe. “The reason is simple,” said the newspaper. “The government then was more worried about harming the system and did not want to potentially upset markets by assessing large fines.” Another reason, though, is that JPMorgan, for all its troubles, remains immensely profitable, and huge, with well over $2 trillion in assets. The government can make an example out of it without jeopardizing it.
 
The regulators are finally getting serious. Yes, it’s true, despite pointing out numerous lapses by senior management at JPMorgan, the government, once again, named no names of senior executives, and indicted two relatively small fry for their actions in the London whale trade. The regulators still have a ways to go — though, they were unusually candid in describing the lapses by the top executives of JPMorgan.
 
But look how far they’ve come! What one hears is that there was very little negotiating about the size of the whopping fine. And the Securities and Exchange Commission required an admission of guilt as part of the settlement, which is a very big deal. (Let’s pause and doff our cap to Jed Rakoff, the federal judge who first started complaining about settlements that did not acknowledge guilt — and whose reasoning appears to have persuaded the S.E.C.)
 
“The passage of time has allowed the regulators to get their acts together,” says my friend Dan Alpert, managing partner at Westwood Capital, and the author of the coming book, “The Age of Oversupply.” It’s encouraging, for instance, to see the Office of the Comptroller of the Currency shed its former reputation as the banks’ best friend in Washington, and get tough on the institutions it oversees.
 
It’s important to remember why banks are regulated so closely. It’s not about punishment, or satisfaction. It’s about ensuring that the banks are being run soundly. Banks are not like other companies; a big bank failure can have enormous economic consequences, as we saw in 2008.
 
“I think the key to safe and sound banking is to hold the boards and senior management accountable,” says Karen Petrou, the managing partner of Federal Financial Analytics. “This is first time of which I’m aware it’s been done.”
 
She added, “Largely because so much else went unpunished, JPMorgan ended up holding the bag.”
“But better late than never,” Petrou said.

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PEDRO BENAVIDES FACES 30 YEARS IN PRISION

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~



Central Florida Businessman Charged in $44 Million Bank Fraud Scheme.
A central Florida man is charged with one count of conspiracy to commit bank fraud, nine counts of bank fraud and nine counts of making false statements to financial institutions.
 
The indictment against him was unsealed Thursday. This case was investigated by Internal Revenue Service (IRS) Criminal Investigation, U.S.
 
Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the U.S. Secret Service and the St. Cloud IRS-U.S. Secret Service Financial Crimes Task Force.
 
If convicted, Pedro Benevides, 44, of Astatula, faces a maximum penalty of 30 years in federal prison, a $1 million fine for each of 19 charged counts and a monetary judgment of $44 million – the proceeds of the charged conspiracy.
 
According to the indictment, from about 2005 through about September 2008, Benevides allegedly used several businesses to obtain $44 million in various loans from federally insured financial institutions.
 
Benevides submitted and caused documents to be submitted to those institutions that contained materially false and fraudulent information. In particular, some documents contained false information concerning the income and assets of the person or entity in whose name Benevides sought the loans, mortgages and lines of credit.
 
Other documents included false and forged tax return documents, statements from financial institutions, bank statements and official checks. Benevides also included false or forged correspondence from a title and escrow company detailing funds that did not exist.
 
On occasion, Benevides also submitted false loan applications supported by false documents. Once Benevides obtained the loans, he used the funds from the loans to pay interest and principal on previously obtained loans, which he also obtained through fraud.
 
Benevides also used the funds from the loans to fund his lifestyle and the businesses he controlled.
 
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
 
 
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Friday, September 20, 2013

PANAMA BANKS PROTECT LOURDES CAJALE MONEY LAUNDER

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock
 
 
 
 
A MONEY LAUNDERER GETS AWAY WITH MURDER
 
 
Readers of my continuing series, When White-Collar Crime becomes Money Laundering, (in six parts so far) who wanted to know the status, it appears that the Colombian national, Lourdes Cajale, whom her employer alleges embezzled money from the firm's account, and laundered it in Panama, will not be charged with money laundering, either in the US or the Republic of Panama.
 
It appears that her ploy, suing her former employer, a corporation, for reportedly violating a ficticious  employment agreement, created so many issues of fact, that no prosecutor has brought criminal charges against her, in either state or Federal, Court, or in the Republic of Panama.
 
The bogus civil suit, which has been pending since 2009 in Miami, and has never been set for trial, seems to be in limbo.
 
My sources in Panama have failed to find any criminal charges filed against Cajale there, in this case. She quietly left the United States some time ago, and has not returned, though she is known to be a naturalized American citizen.
 
Her former employer has paid its attorneys to defend the civil suit; other lawyers were engaged to seek criminal charges against her, and more attorneys to attempt to restore the company's president's US visa, which was revoked, due to unsubstantiated allegations of criminal activity that Cajale reportedly made to American authorities. She artfully gamed the system, as you can see; Justice has not been served.
 
Bottom line: no criminal charges were filed against her, no civil judgment yet either, and no restoration of visa for her employer.
 
Has she gotten away with murder ? You be the judge, but I wonder how many criminal defense attorneys have taken note of this technique, and have seriously thought about filing a civil action, though there may be no factual basis for any litigation. Let us hope that their ethics prevent them from acting.
 
 
 
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PANAMA IS AN ATRACTIVE PROSPECT FOR IRAN


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock




IRAN EYES PANAMA AS ITS NEW OFFSHORE JURISDICTION OF CHOICE
 
Will Panama replace the United Arab Emirates as the place to go if you are an Iranian government-controlled company seeking to conduct trade that effectively evades international sanctions over weapons of mass destruction ?
 
It may soon become a reality. Look at these developments:
 
(1) A prominent builder, who has been seen in Panama, intends to construct a large number of single-family residences for the Iranians that are expected to emigrate there.
 
(2) Panama's new immigrant investor laws are being carefully examined by professionals advising Iranian clients; these advisers are Iranian expats. already living in the West, and they are looking for a meaningful alternative to Canada.
 
(3) The use of Panama, and Venezuela, as third party countries, to which goods are shipped, and then transshipped to Iran via maritime commerce, is growing. Rumors continue to circulate that Panamanian officials, including the country's president, have invested in companies engaged in this commerce.
 
(4) The "don't ask-don't tell" international banking system in Panama, which so far has been ignored by US and EU law enforcement agencies enforcing Iran sanctions, is available to assist in any complex sanctions evasion payments scheme.
 
(5) Don't forget the presence of its primary surrogate, Hezbollah, whose affiliate, Hezbollah Latin America, has a robust presence in the region, and whose agents can conduct financial transactions under the cover of their many front companies, staffed by cadre with local passports and identities.
 
As it becomes more and more difficult for Iran to operate in the UAE, expect it to deploy to alternative jurisdictions, and Panama is a very attractive prospect, with many useful features.
 
Unless the United States finally decides to get its hands dirty in Panama, and assertively goes after the banks involved in facilitating Iranian sanctions evasion, Iran will increase its footprint in Panama.
 
 
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CHINA PROTECTS FRAUDSTERS, PEP, SCAMMERS & PONZI CRIMINALS

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock




CHINA; MINEFIELD FOR FOREIGN COMPANIES AND THEIR DUE DILIGENCE INVESTIGATORS

Reports indicate that the fallen Chinese leader, Bo Xilai, will be sentenced on Sunday, for engaging in multiple crimes of corruption, and becoming a multi-millionaire through bribes and kickbacks.
 
This  case should serve to remind us that corruption, on the part of senior officials in China is rampant and out of control, no matter how much propaganda the country's government serves up to spin the truth. It is far too widespread to suppress.
 
Risk levels, for foreign companies and professionals, drawn like a moth to a Chinese flame, are high, and bogus arrests, and incarceration, can be a real possibility, especially if the government wants to level the playing field a bit, so try not to dominate local Chinese companies, please; You may regret it.
 
Worst of all, the new policies and laws that effectively end the ability of foreign nationals and companies to engage in any meaningful due diligence, are for me the last straw.
 
Who wants to go on the record to approve local Chinese partners for a client, when routine inquiries constitute crimes against the state ? Do your client really want to jump in, feet first, and invest time & money, when one cannot ascertain risk levels of prospective joint venturers, and local partners ?
 
I have already advised readers to raise Country Risk levels for China; to those brave souls who still want to find a way to profit from China, I say: have a contingent escape plan in place, both for financial, as well as personal, risk. Can you say FCPA ?
 
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Thursday, September 19, 2013

NATURAL DISASTERS ARE A CHANCE FOR MONEY LAUNDERERS


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock



WATCH FOR BULK CASH SMUGGLING HIDDEN IN MEXICAN RELIEF SUPPLIES

The twin natural disasters in Mexico this week will certainly spawn relief efforts originating in the United States. America-based  charitable organizations, and other nonprofits, will be sending food and supplies to those affected by the storms and flooding.
 
The problem is, it provides a rare opportunity for money launderers employing bulk cash smuggling to ship narcotics profits south, in the chaos that typically follows such disasters, where relief is desperately needed for the victims, and the need is urgent.
 
Bulk cash, which can easily be concealed in relief supplies, could be sent south under the auspices of a bogus charity controlled by the money launderers.
 
Once en route, and safely in Mexico, it may be diverted, the cash extracted, and the supplies allowed to proceed to their stated destination.
 
The most effective concept is to create a nonprofit with a name deceptively similar to that of a well-established charitable entity, which will facilitate its ready acceptance.
 
Outbound shipments from the Continental United States are rarely examined, unless they are of a suspicious nature, or traveling to a high-risk drug producing country.
 
I expect that one or more money launderers, working for cartel masters, will attempt to move bulk cash, using this technique, into and through Mexico, to a final destination where the US Dollar is the accepted currency, like Panama or Ecuador.
 
Let us hope that US law enforcement examines these charitable donations flowing into Mexico.
 
 
 
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PANAMA RAPIDLY BECOMING LIKE VENEZUELA


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock
 
 
 
CONCERN SURFACES REGARDING LOOMING INSTABILITY IN PANAMA IN 2014
 
Several experienced residential observers of the political scene in the Republic of Panama have expressed real concerns about the probability that the results of the 2014 Presidential Election will be manipulated to place power in the hands of the ruling party's chosen successor.
 
In essence, the fear is that President Martinelli, whose autocratic style of management of the country, will find a way to place his chosen one into office, and rule from the shadows.
 
The example has been cited of decades of questionable election returns in Venezuela, resulting in a virtual dictatorship, and Panamanians who wish to maintain democracy in their country are worried. I don't blame them. Many of them do not want a strongman-type rule in Panama again.
 
Compliance officers at banks whose clients are exposed in Panama should keep an eye on the forthcoming election, the results, and any civil disturbance that may arise in the aftermath, due to verified evidence of election fraud.
 
Panamanians are not afraid to take to the street if they have grievances, as we have seen in recent years, and President Martinelli does not refrain from having his security forces respond with a heavy hand.
 
The net worth could be chaos in Panama City in 2014, disrupting business and increasing risk levels.
 
 
 
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CLAUDIO OSORIO SENTENCED TO 12 YEARS FOR FRAUD IN UNITED STATES


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA   ~Contributed & Written by Kenneth Rijock ~
 
 
$50m MIAMI FRAUDSTER SENTENCED TO TWELVE YEARS FOR LOW-COST HOUSING SCAM
 
Claudio Osorio, the high-profile Venezuelan businessman who took in $40m from investors, and qualified to receive an additional $10m from the United States, was sentenced today, in US District Court in Miami, to  twelve and one-half  years in Federal Prison.
 
He promised investors that his company would build 500 homes in Haiti, and proposed to construct additional low-cost homes in other developing countries, but failed to produce, and made repeated misrepresentations of material facts, including false bank statements, in what was in essence a Ponzi scheme gone sour.
 
The case received a large amount of media attention, due to Osorio's fundraising activities on behalf of candidates for President of the United States..
 
His company reportedly never even broke ground in Haiti, and the defendant allegedly moved all the investors' money to the Cayman Islands.
 
The court-appointed trustee has stated that he is unable to recover any funds from accounts there; the money is believed to have been spent.
 
Several years ago, a former Venezuelan government official, of cabinet rank,  living in Miami, warned that Osorio's business model was a fraud, but unfortunately, nobody was listening, least of all the investors, whose $40m will probably never be recovered. The word for the day : Due Diligence.
 
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Wednesday, September 18, 2013

IRAN LOOKING FORWARD TO HIDE FROM SANCTIONS


FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA   ~Contributed & Written by Kenneth Rijock ~



IRAN MOVES INTO BANKS IN THE DEVELOPING WORLD TO EVADE GLOBAL SANCTIONS

Iranian businessmen, acting on behalf of their government, are quietly purchasing interests in financial institutions in Asia, and other regions, for the sole purpose of acquiring the ability to engage in international finance, doing an end run around existing sanctions pending against Iran.
 
We have previously discussed the fact that there are five Iranian-controlled financial institutions in Malaysia, but that is only one faced of Iranian banking ambitions.
 
Iran is either already in, or has arrangements pending, to either purchase outright, or invest in, banks located in:
(1) Azerbaijan
 
(2) Armenia
 
(3) Singapore
 
(4) Venezuela
 
The usefulness to Iran, of the control of a financial institution in a third country cannot be overestimated. Goods can be ordered and shipped to that country, but the destination changed to Iran, while the cargo is en route on the high seas.
 
Dual-purpose goods,  those that have parallel applications in Iran's illegal WMD and ballistic missile programs, can be safely ordered, as the seller believes that they are destined for a non-sanctioned end user.
 
Payments for sanctioned Iranian oil can be quietly routed through other jurisdictions. The sanctions evasion potential is unlimited.
 
While it is premature to consider raising the Country Risk levels in Azerbaijan and Armenia, compliance officers would be well advised to confirm ownership of any bank in those countries that has recently changed hands, before engaging in any transfers of large amounts of funds. I have already recommended that you raise Country Risk for Malaysia.
 
 
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KIMBERLY ROTHSTEIN SCARED TO GO TO PRISION

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA   ~Contributed & Written by Kenneth Rijock ~
 



PONZI SCHEMER'S WIFE ASKS FOR YET ANOTHER DELAY IN HIS SENTENCING


Kimberly Rothstein, the wife of convicted Ponzi schemer (and ex-attorney) Scott Rothstein, has asked the Federal Judge in her own case to again delay her sentencing, which is currently set for 7 October.
 
Mrs. Rothstein, who pled guilty to three charges, including money laundering conspiracy and obstruction of justice, reportedly faces a maximum five-year sentence.
 
Her husband is serving a 50-year sentence, and she intended to have him lie about the disposition of the missing jewelry, which is witness tampering.
 
In her attorney's motion, the defendant asks that her sentencing be delayed until she can testify against two of her co-conspirators.
 
Readers of this blog will recall that she attempted to hide, and later sell off, the bulk of her extensive jewelry collection, to prevent it from falling into the hands of the court-appointed trustee, who was assembling assets to repay victims of her husband's massive $1.2bn Ponzi scheme.
 
The defendant stated that she intends to testify against those who aided and abetted her in the fraud.
 
She hopes that this Substantial Assistance will qualify her to receive a 5k1.1 motion, from the US Attorney, so that she will receive a shorter sentence than the Sentencing Guidelines recommend.
 
In an obvious attempt to mollify the judge, who had previously stated that she would not be granting any other delays in sentencing, counsel's motion included the statement that Mrs.
 
Rothstein was ready to begin serving her sentence right after the sentencing hearing, rather than have the customary period generally afforded defendants to get their personal matters in order, prior to surrendering.
 
 
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