Monday, May 30, 2016

HUNT IS ON FOR DAVID MURCIA GUZMAN 200 BEARER SHARE COMPANIES & MILLIONS OF US DOLLARS

Written By:                      Kenneth Rijock - International Financial Crime Consultant
Contributed By:              Vladimir Feldman - Financial Crime Analyst 
Posted By:                       Andrei Slavenkov - Financial Crime Analyst

ATTORNEY: DAVID MURCIA GUZMAN CREATED 200 CORPORATIONS TO HIDE MONEY


David Murcia on US$100 note

The universal publicity surrounding  the sketchy companies created by the outlaw law firm of Mossack and Fonseca, and appearing in the Panama Papers, may have spawned new interest in recovering the missing money from the massive DMG scandal.

A lawyer involved in the long-running efforts to recover funds for victims of the DMG pyramid scheme, operated by David Helmut Eduardo Murcia Guzmán, has stated that Murcia created over 200 additional corporations, located in Panama, to hide the proceeds of crime. Reliable sources have alleged that the Panama City law firm of Garrido and Garrido formed many of the corporations for Murcia. 

Several months after the fraudster's deportation, an unsuccessful assassination attempt was carried out against one of the Garrido partners, and Murcia's associates are believed to have been involved.




The DMG fraud, which started in Colombia, soon expanded to Panama, where there are reportedly over 1500 victims, who lost an estimated $15m. Two of the Panamanian DMG companies have been identified:

(1)  Grupo DMG Inversiones Inteligentes SA.
(2)  Grupo DMG Intelligent Cards Corp.

DMG is alleged to have earned $28m, between 2006 and 2008; he is also believed to have hidden billions of dollars of Cartel narcotics profits within DMG receipts, and moved them into Panama, for the purposes of money laundering. 

Much of that money was said to be laundered by the fugitive former President of Panama, Ricardo Martinelli, through his Super 99 Market chain, and by Gary James Lundgren, the barred American securities trader, who purchased vast amounts of real estate with Murcia cash, and both later stole the fraudster's assets, both cash and real estate, when he was swiftly deported to Colombia, to face justice.

Gary Lundgren

We shall be monitoring the renewed investigation into locating the missing DMG assets.

Ricardo Martinelli

Saturday, May 28, 2016

PANAMA IS AND ALWAYS WILL BE A MONEY LAUNDERING "BANANA REPUBLIC" COMPLETE WITH VIOLENT CRIME

Written By:                      Kenneth Rijock - International Financial Crime Consultant
Contributing:                   Andrei Slavenkov - Financial Crime Analyst
Posted By:                       Monte Friesner - Financial Intelligence Analyst

WAKED CASE PROVES THAT MONEY LAUNDERING THRIVES IN PANAMA 


The Waked Money Laundering Organization. which, conservatively, moved over a billion dollars of drug profits into Panama, has demonstrated, again, that the country's banking industry has no existing anti-money laundering system. The US Drug Enforcement Administration (DEA) disclosed this week that it first began to investigate Waked in 2006, after a large seizure of cash, inbound from Mexico, was interdicted upon arrival in Panama.

DEA statements, that the Wakeds laundered $2m in dirty cash, each week, in the Republic of Panama, confirms that drug profits are not only welcomed in Panama City, it is the lifeblood of the banking industry. Waked's operation was an open secret for several years, yet the Government practices its own version of Willful Blindness. You cannot tell me that it did not know the truth about Waked's immense cash flow.

Apparently the only people in Panama who are upset about the Waked scandal are those who blame the US for the potential loss of 5000 Waked front company jobs, and who say that the case is an attack upon the Panamanian financial system; it is all a poor attempt at spin control.

Given that Panama refuses to implement effective reforms, should we now listen to those who believe that Panama's dollarized economy, which facilitates its massive money laundering industry, should now be forced, by the United States, to totally abandon its use of US currency, and issue the Balboa ? That would, some say, fatally contract its banks' ability to clean narco-profits. It would also shut down Panama as the prime offshore financial center of Central America, but given the rampant financial crime,  it is a comparatively small price to pay. 

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Remember, former Superintendent of Banking, Alberto Diamond R, openly bragged that more than $15bn in "flight capital" entered his country's banking system from Venezuela.


  

Thursday, May 26, 2016

BNP PARIBAS BANKS CLOSES ALL BRANCHES IN CAYMAN ISLANDS FOR FEAR OF CORRUPTION IN CAYMAN

Written By:                   Kenneth Rijock - International Financial Crime Consultant
Contributed By:           Vladimir Feldman - Financial Crime Analyst
Chronicles Of:              Monte Friesner - Financial Intelligence Analyst & Consulaire (Wanted SA)

IN NOD TO PANAMA PAPERS BLOWBACK, BNP PARIBAS TO CLOSE ITS CAYMAN ISLANDS BRANCHES



The furor over the information disclosed in the Panama Papers has translated in the launching of major governmental investigations over tax haven company formation. Yesterday, BNP Paribas advised that it is closing all its Cayman Islands branch facilities. This announcement came in the aftermath of some very public statements, made by the Government of France, regarding its inquiries into the abuse of tax haven corporations, by French citizens.

BNP Paribas has been the subject of multiple law enforcement and regulatory inquiries in the past,  especially concerning suspected money laundering, in a number of countries, including the United States, where there are still unresolved questions about the bank's business with certain of its Venezuelan clients, transactions involving Iran, and Nigerian PEPs.

We have previously covered a number of its compliance deficiencies, and other relevant issues in prior articles, which readers may be accessed through the search box at the top of the page. Some observers have questioned the adequacy of its compliance culture, and opined that, in many instances, the demands of officers in the bank's most profitable divisions appear to have trumped valid AML compliance concerns.


Wednesday, May 25, 2016

FREDERICK LANGFORD SHARP OF BRITISH COLUMBIA WAS MOSSACK & FONSECA PRINCIPAL PLAYER IN CANADA

Written By:                   Kenneth Rijock - International Financial Crime Consultant
Contributed By:            Andrei Slavenkov - Financial Crime Analyst (Netherlands - Canada)
Chronicles Of:              Monte Friesner - Financial Intelligence Analyst & Consular Wanted SA

CANADIAN LAWYER WHO WAS MOSSACK'S AGENT FOLLOWED TRADITIONAL MONEY LAUNDERING TECHNIQUES

The former British Colombian lawyer, Frederick Langford Sharp, who was Mossack Fonseca's principal player in Canada, employed the techniques and strategies of career money launderers, frankly, because he was one. Sharp's company, Corporate House (now reportedly known as Lake House Group), registered over one thousand companies through the Mossack law firm.

His tradecraft was simple:

(1) He used an offshore entity, Bond & Co. in Belize, but employed Companies House, an onshore company, as an intermediary; no references were ever made to Bond and Co. with clients.

(2) He ordered that no annual invoices, or statements of account were ever to be sent to the clients, via email, fax, or post.

(3) Printed statements of account and annual invoices were to be destroyed.

(4) He had a computer server set up in Panama, which was outside the reach of Canadian law enforcement subpoenas and warrants.

(5)  His staff were never to include a reference, or anything else in the attention line or heading, on correspondence and transmittals.

(6)  he offered to set up representative offices for clients, and to structure business, so that no taxable income resulted from the arrangement.

(7) He used an international courier service for all documents, and instructed staff to neither bill the clients for the courier, nor to place any name in the reference.

(8) Many of the Canadian clients had companies formed for them in Hong Kong, making document retrieval, and information access, problematic, for any regulator or law enforcement agency not located in Asia.

These are not the methods of a financial services professional; they are the acts and deeds of a financial criminal,  specifically a money launderer. Unfortunately, it took several years for the Law Society of British Colombia, to suspend attorney Sharp from the practice of law. Once he was no longer subject to its jurisdiction, he simply failed to ask for reinstatement, after his suspension term had expired.

As more details emerge, in the Panama Papers, we shall analyze them, and report back to our readers, on their significance and meaning.

BANK OF PALESTINE OPENS IN "UAE" - DUBAI

Written By:                  Kenneth Rijock
Contributed By:           Vladimir Feldman

WILL NEW OVERSEAS BRANCHES OF BANK OF PALESTINE FACILITATE TERRORIST FINANCING ?



The Bank of Palestine, the Territories' largest local financial institution, has opened an agency in Dubai, United Arab Emirates. The new office, located in the Dubai International Financial Center (DIFC), is the bank's first foreign facility, and its stated purpose is to service the estimated 250,000 Palestinians who live and work in the UAE. The bank has also announced that plans are underway to open an additional agency in Santiago de Chile; Chile reportedly has more than 500,000 Palestinians.

Given that the bank has branches and an alternate headquarters in Gaza, the expansion raises a significant issue: will terrorist financing of Hamas, a designated terrorist organization, be facilitated ? while wire transfers leave a public paper trail, will internal bank transfers, which can often be artfully accomplished without any external record, could give Hamas a quiet new route through which to bring in profits it has earned through criminal activities overseas, especially from Latin America.



We recognize that the bank has long been thought of as the future central bank, in an eventual Palestinian state, but Hamas, and indeed any sanctioned Palestinian terrorist group, could exploit the bank, with the participation of only a small number of cooperating bank staff. Until we can verify that the new Dubai agency is not engaging in some activities that support Hamas, the prudent action is to engage in enhanced due diligence, in any matters involving the new Dubai facility.

  

Tuesday, May 24, 2016

BSI BANK LIQUIDATED FOR "MONEY LAUNDERING"

Written By:                  Kenneth Rijock - International Financial Crime Consultant
Contributed By:          Maxwell Swartz - Financial Crime Analyst
Chronicles Of:            Monte Friesner - Financial Intelligence Analyst & Consular for Wanted SA

RICARDO MARTINELLI WAS A CLIENT OF MONEY LAUNDERING SWISS BANK BEING LIQUIDATED



Several years ago, this blog* covered then-President Ricardo Martinelli's trip to Italy, which included a quiet side trip to Lugano, not covered in the official itinerary. The Swiss destination was Martinelli's bank, Banca della Svizzera Italiana, known to most as BSI, which is in the news today, due to its liquidation, by Swiss authorities and FINMA, because of its role in $4bn of funds movement, reportedly misappropriated from state-owned companies in Malaysia, where the bank maintains a branch. There are multiple criminal proceedings in process against the bank, and a reported $13.3m civil penalty in Malaysia; Money laundering allegations abound.

What was Ricardo Martinelli's plane doing that day in Lugano, you ask ? Those who know say he was depositing a portion of the $3bn that the Colombian fraudster, David Murcia Guzmán, entrusted to him to invest, and which he allegedly laster appropriated to his own use, after he arranged Murcia's hasty deportation, into the waiting arms of Colombian law enforcement.

Additionally, he was banking some of the cash he collected, as bribes and kickbacks, during his term as Panama's most glutinous president. Martinelli had awarded lucrative government contracts, and taken more than his share of illicit compensation.

Ricardo Martinelli " Did they find my cash?"

With BSI now in involuntary liquidation, and another Swiss financial institution now taking over its deposits, we wonder whether, in light of the dozen criminal charges pending against him in Panama City,  whether a government agency or two will seek to seize those dirty millions. After all, it is obvious that Panama will never extradite Martinelli from Miami; perhaps Panama will go after his illicit wealth instead.
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Are Panamanian PEPs Moving their Swiss cash ? 

USA READY TO SEND HELP TO EVACUATE VENEZUELA

Written By:                       Kenneth Rijock
Contributed By:                Monte Friesner

VENEZUELA: A FAILED STATE ? 

Caracas, Fall 2016 ?
Things have gone from bad to worse in the "Bolivarian Republic" of Venezuela, which can no longer feed its people. Now, not only did the brewer of the country's famous Polar Beer stop producing, due to its inability to obtain the necessary ingredients, the Coca-Cola distributor has shut down production, as it  can no longer get sufficient sugar to turn out its soft drinks.

Given the dire economic situation, any extension of credit by foreign banks, and even a single instance of financial exposure, is  fraught with a high risk of default. Many foreign creditors cannot recover their funds, due to the inability of local businesses to obtain dollars. The Bolivar is well on its way to becoming virtually worthless against the dollar.

The Venezuelan military will not intervene, to remove the failed socialist government of Nicolas Maduro, because its leaders are making millions from drug trafficking. Many Venezuelans have voted with their feet, and are now living in Miami's city of Doral.  For Country Risk purposes,  the prudent move is to avoid any and all transactions with Venezuelan businesses, for you will either be stiffed, or you may later learn that your wealthy bank client is really a corrupt government official, or a narcotics trafficker.

What is next, US Army helicopters rescuing Venezuelans from Caracas rooftops, while a bloody civil war rages below ? Many observers actually fear that this is coming, and soon.

Monday, May 23, 2016

CORRESPONDING BANKS ARE REFUSING TO TRANSFER YOUR MONEY

Written By:            Kenneth Rijock - International Financial Crime Consultant
Contributed By:     Monte Friesner - Financial Intelligence Analyst

WORLD BANK REPORT ON THE CORRESPONDENT BANKING CRISIS


You may have seen a reference, in a number of recent articles, to the World Bank article, Withdraw from Correspondent Banking: Where, Why, and What to Do About It. That article details the specific reasons onshore banks are using, when conducting their decision process about terminating correspondent banking relationships, with prejudice. Readers who wish to review the complete text, may do so here. See "Complete Report in English, " on the right-hand side of the page, and download the pdf document.

*   Before you send a Transfer through your bank; double check that the intermediary and/or corresponding bank still approves your bank.

Saturday, May 21, 2016

MOSSACK FONSECA CREATED CRIMINAL CORPORATIONS FOR CANADIANS

Written By:                    Kenneth Rijock - International Financial Crime Consultant
Chronicles Of:               Monte Friesner - Financial Intelligence Analyst
Contributed By:            Vladimir Feldman - Financial Crime Analyst

MOSSACK FONSECA USED ITS CAPTIVE FOUNDATION TO HOLD BVI CORP FOR CANADIAN CLIENTS


The Panama law firm of Mossack Fonseca, whose methods and tactics more closely resemble those of an international money laundering operation, rather than a team of attorneys providing legitimate legal services, used its captive foundation to hold title to companies that it formed for clients; in this case, it was a Canadian national, though lawyers in that country now involved with him insist that they are winding down all offshore matters, and following Canada's tax laws, to the letter.

What Mossack did:

(1) Form a British Virgin Islands corporation for the client. BVI companies have bearer shares, so it si impossible to identify Beneficial Owners.

(2) Charge the client $9000 for that service. Under ordinary circumstances, this would be considered a clearly excessive fee. Ask your own lawyer what he charges to form a corporation in your jurisdiction.

(3) List "MF Foundation" as the shareholder of the BVI company. Foundations, under Panamanian law, have no shareholders, and the beneficiary can be changed at will. This is a classic money laundering technique, and it has no place in legitimate legal practice.

(4) A bank account was thereafter set up at Winterbotham Trust Company, Limited, in Nassau, Bahamas, and an initial deposit of $9000 was made. Such "under-ten" deposits are expressly designed to avoid any reporting requirements that might alert law enforcement, or tax authorities, to potential tax evasion, or criminal activity. Winterbotham also has offices in Uruguay and Hong Kong.


The above is a template for precisely how Mossack Fonseca, and indeed many other Panamanian law firms, move money for wealthy clients. Issues about whether the money is evading taxes, or is the proceeds of crime, are never brought up, as Panama is attractive, not for legitimate international commerce, but for dodgy clients, and dirty money.

LEBANON IS AT A POINT OF NO RETURN CONCERNING BANKING

Written By:                     Kenneth Rijock - International Financial Crime Consultant
Contributed By:              Maxwell Swartz - Contributing Analyst
Chronicles Of:                Monte Friesner - Financial Crime Intelligence Analyst

HAS COUNTRY RISK FOR LEBANON NOW REACHED UNACCEPTABLE LEVELS ?


With Lebanese Bankers associations hastening to warn that the US Anti-Hezbollah financing law, now in force, is to be obeyed, notwithstanding that designated terrorist organization's domination of the country, Country Risk may now have finally reached the point of no return. In essence, the risk levels are now so high, that investments in Lebanon, and transaction with Beirut banks, represent an unacceptable level of danger.

Hezbollah, bloodied in Syria, and needing to still show the Arab street that it is relevant*, could initiate yet another conflict with Israel, which that country has bluntly warned will result in destruction of heretofore segments of the Lebanese economy that escaped damage in the last war, a decade ago. if the downtown Beirut business district is destroyed, so will be the Lebanese financial center. The anticipated loss of life could even exceed the nightmare of the Lebanese Civil War.

Would the Islamic State, or one of the radical Sunni Opposition groups fighting in Syria then threaten a weakened Lebanon ? We cannot say, but geography is not on the side of Lebanon, given the threats already posed by these insurgents, some of who have already fought with the country's small army in border towns. With Hezbollah engaged, Lebanon would be vulnerable.

Taking all this into account, the prudent move for any compliance officer, tasked with the calculation of Country Risk, will be to raise it so high on Lebanon, so as to deter any client investment, or extension of credit or other financial exposure.
______________________________________________________________________



* The Shebaa Farms territorial dispute, which is a bogus Hezbollah claim, made ostensibly on behalf of Lebanon, to justify military action against Israel, has no basis in fact, as the territory was always on the Syrian side of the frontier; This is supported by French historical records. Hezbollah has always had a reckless disregard for the truth, when it serves its interests.

Friday, May 20, 2016

MOSSACK FONSECA OF PANAMA IS A CRIMINAL ORGANIZATION

Written By:                   Kenneth Rijock - International Financial Crime Consultant
Contributed By:            Monte Friesner - Financial Crime Analyst

MOSSACK LAW FIRM HID ITS DODGY BVI AND CUBAN SUBSIDIARIES


The Panamanian law firm of Mossack and Fonseca, roasted in global media, for its illegal activities, as revealed in the Panama Papers, went to great lengths to disguise its illicit overseas subsidiaries. The use of corporate names that cannot be identified with a parent, and the use of deceptive  names, are the hallmarks of money launderers.

We already know that the law firm used "MF" in the names of subs, to conceal their relationship with the parent, but the firm resorted to even more confusing methods, to insure that the public would not connect it with its secretive formation, in other tax haven jurisdictions. For example:

(1) in the opaque British Virgin Islands, where Mossack formed the majority of its corporations for dodgy clients(and where the local regulator, the FSC, allowed it to operate with impunity*) it employed "Mossack Fonseca & Co." as its local subsidiary. law firms do NOT use the word company in their name; its use was clearly intended to deceive the non-lawyer public, who would assume that the firm was a commercial business.

(2) In the Republic of Cuba, Mossack used "Pan American Corporation," which obviously was a scheme to rely upon the fact that many companies use the phrase 'Pan American' in their title, and it was an effort to link it with other, totally unaffiliated entities. it also connotes such former old-line companies as Pan American Airways, and Pan American Bank, which seemingly provides a level of legitimacy. Again, this is classic money laundering trade craft.

A number of corrupt Cuban Communist Party officials have recently been unmasked, for having MF forming offshore companies for them, directly, or through Swiss intermediaries. Most senior Cuban officials are believed to hold large Swiss accounts, containing criminal proceeds, and some of those accounts are in the names of tax haven companies formed by Mossack Fonseca.

The more details that emerge, about the financial crime which Mossack and Fonseca engaged in, the louder the clamor will be, to shut down the firm, and charge all the partners, not just the duo whose names appear, with money laundering, in multiple jurisdictions, including the United States and Canada. If Panama  does not act in a timely manner, you can expect its reputation to sink even lower, in the eyes of the world, and it will cease to be a destination for legitimate international business.
_______________________________________________________________
See Regulator Allowed Mossack and Fonseca to Run Amuck in BVI, Kenneth Rijock's Financial Crime Blog, may 17, 2016.

Thursday, May 19, 2016

GARY JAMES LUNDGREN THUMBS HIS NOSE AT USA REGULATORS

Written By:            Kenneth Rijock - International Financial Crime Consultant
Contributed By:     Jaime Naynudel - Financial Crime Analyst (Latin America)
Chronicles Of:       Monte Friesner - Financial Intelligence Analyst

BANNED STOCK TRADER THUMBS HIS NOSE AT FINRA AND SEC FROM OFFSHORE 


Panama's most prolific fraudster, the American expat, Gary James Lundgren, continues to give the finger to the Financial Industry Regulatory Authority (FINRA), from the safety of his offshore base in the Republic of Panama. Is it because he has the proverbial "get-out-of-jail free card," by virtue of a longstanding Confidential Informant status with a US law enforcement agency, we wonder ?

 Banned by FINRA, from any association in the securities industry, Lundgren continues to sell unregistered securities to US residents, employing a Panama corporation that he formed last year, Interpacific Investors SA, which has the same name as his former, and now closed, securities firm in the State of Washington. He is still using the same website, www.interpacificinvestors.com , as his shuttered US brokerage firm, but now visitors as sent directly to Interpacific Investors SA. He is obviously targeting investors who are US residents.

 Lundgren is offering "bonds," which are, in truth and in fact, unregistered securities,  and which he markets, in the United States, through a covert network of stock salesmen who funnel capital to him. Currently, Lundgren's two sons, and a front man are handling transactions.
The so-called bonds are fractional interests in Panama real estate projects; as they are an investment scheme, the profits of which are solely to come through the efforts of others, they fit the classic definition of what constitutes a security. So why isn't this an SEC case yet ? The Securities & Exchange Commission has jurisdiction over the sale of unregistered securities in the United States.

*   Type in http://www.iisbonds.com which is directed to Inter Pacific Investors Services



Wednesday, May 18, 2016

PANAMA BANKS LAUNDERED OVER $20 BILLION USD FOR ABOUT 400 COLOMBIANS

Written By:                    Kenneth Rijock
Contributed By:             Monte Friesner

COLOMBIA STATES MOSSACK FONSECA HELPED COLOMBIANS EVADE TAXES ON $20bn 

The Colombian Ministry of Finance, after a visit to the Bogotá offices of Mossack and Fonseca, has declared that Mossack, and other Panamanian offshore specialists, assisted Colombian nationals in evading taxes upon approximately $20bn. It has estimated that 400-500 Colombian taxpayers evaded taxes, with Panamanian help. A team of 50 auditors will be engaged to identify the tax evaders, who also reportedly violated Colombian currency exchange controls.

The methods  Mossack used, for its Colombian clients, included:

(1) The sale of real estate, often for cash, was artfully concealed, when the sellers elected to receive the payment in Panama, and not report it to Colombian tax authorities. Panama does not tax offshore transactions.

(2) The use of inflated invoices, sent from Panamanian companies, which resulted in zero profits for the Colombian corporation, and no tax bill.

(3) Exporting goods to Panamanian companies, affiliated with the Colombian taxpayer, but not disclosing that arrangement to tax authorities. The net result is that there are no reported profits in Colombia.

Colombian authorities will exact a 160% penalty, plus accrued interest, on all tax evaders that it identifies, as the result of the Panama Papers disclosures.

Monday, May 16, 2016

WAKED FAMILY OF PANAMA LAUNDERED MONEY FOR "HEZBOLLAH"

Written By:          Kenneth Rijock - International Financial Crime Consultant
Contributed By:   Jaime Naynudel - Financial Crime Consultant
Chronicles Of:     Monte Friesner - Financial Crime Intelligence & Analyst

PANAMA'S WAKED MONEY LAUNDERING ORGANIZATION WAS PROVIDING FINANCIAL SUPPORT TO HEZBOLLAH


The Panama-based Waked Money Laundering Organization, which owned a large group of legitimate companies, and through them, engaged in criminal activities, was owned and led by a family of Lebanese origin, whose members maintain Lebanese, Colombian or Panamanian citizenship.

The individuals, who were indicted in US District Court, with money laundering and bank fraud, were also engaged in providing material support to a Specially Designated Terrorist organization, namely Hezbollah, and with terrorist financing, though they have not, as yet, been indicted on those charges. The Waked organization funneled millions of dollars annually, to Hezbollah, employing its diversified holdings of legitimate corporations, as well as shell companies, formed by their Panamanian attorneys, to disguise and move criminal profits, to Hezbollah in Beirut.

The terrorist financing activities of the Waked Organization were disapproved by other Panamanian organized crime syndicates, but  local law enforcement always failed to take any action against it. It is believed that the Waked family had such powerful influence in government circles, obtained through a combination of bribes, and threats, that it openly operated in Panama, with impunity. The American indictments, and OFAC sanctions, which include prohibitions on US residents doing business with the Waked empire, are intended to collapse its operations, save perhaps those limited legitimate companies that are receiving licenses from US Treasury, and which employ thousands of Panamanians.

PRESIDENT OF VENEZUELA HAS "FLIPPED HIS LID"

Written By:               Kenneth Rijock
Contributed By:        Monte Friesner

PRESIDENT OF VENEZUELA DECLARES A STATE OF EMERGENCY



Nicolas Maduro, the President of the Bolivarian Republic of Venezuela, has declared a national State of Emergency, which effectively places the risk levels of any commerce, or any financial exposure, so high that the nation should now be considered off limits, for the purposes of Country Risk. The ability of any foreign creditor, vendor, or claimant, to obtain justice, or any effective redress, for any reason, is now effectively zero. The country's corrupt court system, that routinely follows government orders, and not the rule of law, may now note even be available to foreign plaintiff, due to the State of Emergency.

Maduro has threatened to nationalize any manufacturing facility that has closed up, notwithstanding the fact that most factory closures are generally for their inability to obtain raw materials from abroad. Polar, one of the country's largest companies, has stopped brewing its trademark beer, due to a lack of barley, which is imported.

The Opposition continues to seek the recall of the country's president, whose administration has been accused of responsibility for Venezuela's economic chaos, a situation where many are forced to wait ion long lines daily to purchase staples, when they can be had at all. Prudence dictates that you Redline Venezuela at this time.

MOSSACK FONSECA STEAL IDENTITY OF MR. DONALD TRUMP

Written By:            Kenneth Rijock
Contributed By:    Andrei Slavenkov
Posted By:            Maxwell Swartz

MOSSACK AND FONSECA MISUSED TRUMP'S NAME ON CORPORATIONS IT FORMED FOR OTHERS



Donald Trump is angry, and with good reason
Attorneys for the American Presidential Candidate Donald Trump are reported to have arrived in Panama this weekend; their client is mad as a hatter at the fact that the Panama Papers disclosures have revealed that the law firm of Mossack and Fonseca formed offshore companies, using the Trump name, without his permission and consent.

The Mossack firm, which has previously been identified for illegally using the names of legitimates NGOs, and international banks, in forming companies, in faraway tax havens, is accused of using Donald Trump's formidable brand for its clients, which is a violation of trademark and intellectual property laws. It is not known which offshore jurisdictions Mossack and Fonseca used, but it has focused on the most obscure Asian, and Indian Ocean, tax havens, in using, and abusing, the names of legitimate entities.

While there has been no identification of precisely which client the Mossack firm formed the imposter companies for, Panama observers have already pointed to the American fraudster, stock trader Gary James Lundgren, as the most likely suspect. Lundgren has made a career out of using the names of legitimate, and powerful, people, to hide his criminal conduct. Panamanian regulators have steered away from prosecuting him for years, due to the fact that he has posed as a partner of Ricardo Martinelli, and formed companies with names that appear to be linked to the former president.
Lundgren actually posed as a partner of a financial institution partially owned by Martinelli and his family, in order to defraud Canadian and American expats, who became some of his victims. Also, one must consider that Trump is suing Lundgren for $75m, and understand that Gary Lundgren has a history of perpetrating dirty tricks upon individuals that he has defrauded in business.

Sunday, May 15, 2016

MOSSACK & FONSECA COMMITTED CONSPIRACY & FRAUD

Written By:           Kenneth Rijock - International Financial Crime Consultant
Contributed By:    Jaime Naynudel - Financial Crime Analyst
Chronicles Of:      Monte Friesner - Financial Crime & Intelligence Analyst

MOSSACK AND FONSECA ILLEGALLY FORMED OFFSHORE COMPANIES WITH THE NAMES OF PROMINENT BANKS


As more documents in the Panama Papers scandal are made available to the media, we are learning that there was nothing sacred at Mossack, when it came to forming companies, which were then used to hide money for its dirty clients. Reports from Panama indicate that the law firm of Mossack and Fonseca not only illegally appropriated the names of well-known international NGOs and non-profits, when forming offshore companies in obscure tax haven jurisdictions, it actually formed companies with the names of prominent international banks, without their consent and knowledge.

The Mossack firm also used the tried-and-true technique of classic money laundering: filing companies having the names of banks that have been ever so slightly altered. We called that deceptively similar, making a very minor change in the spelling of the name. Most readers assume, incorrectly, that it is one and the same as the real bank, but, in truth and in fact, it is a shell company unaffiliated with the real one. That's how money launderers and financial criminals get over on the legitimate financial world.


You can expect to see more of these "dirty tricks" from Mossack and Fonseca, as more information is released to media outlets. They demonstrate a complete and total lack of business ethics, a corporate culture bereft of any morality, and a reckless disregard for trademarks, service marks, and intellectual property. 

Thursday, May 12, 2016

MOSSACK & FONSECA THREATEN TO SUE JOURNALISTS; HOWEVER NO BASIS OF LAW

Written By:                    Kenneth Rijock
Contributed By:            Andrei Slavenkov
Chronicles Of:              Monte Friesner

MOSSACK AND FONSECA THREATENS TO SUE JOURNALISTS



In the height of arrogance, the Panama law firm of Mossack and Fonseca has publicly threatened to sue the media sources that broke the "Panama Papers" story, claiming attorney-client privilege. Perhaps the partners need to go back to law school, for the Crime or Fraud Exception specifically provides that, when a lawyer is engaged in criminal conduct with his clients,  even if he is unaware that he is participating in a crime, the privilege does not apply. The firm cannot hide behind the shield of confidentiality, when it facilitates criminal activity, and is also willfully blind.

It might be relevant to make the observation at this time that most of the corporation work is done by the large staff of paralegal assistants, and legal secretaries. Many clients do not have contact with  a lawyer, nor are they personally counseled by one, regarding their rights and responsibilities. They just get a huge bill from a staff member before leaving the office, often for a BVI company, which was formed by financial services staff in Roadtown, Tortola.

I also note that the "underground" branch offices, which are in principal cities around the world, do not feature an attorney on staff. Perhaps the Mossack firm might like to explain how the privilege applies when there's no lawyer around,

PANAMA BANKS SINKING INTO THE SEA WITHOUT ANY MEANS OF HELP OR LIFEJACKETS

Written By:          Kenneth Rijock
Contributed By:   Monte Friesner

PANAMA'S BANKS LOSE THEIR CORRESPONDENT ACCOUNTS IN US

Multiple sources in Panama City are reporting that several local financial institutions have lost their correspondent accounts in the United States, and American bank clients seeking to transfer funds to the Republic are unable to complete any wire transactions through those correspondents. Banco General SA and Banco Nacíonal de Panama SA are among those who reportedly are now without any means of receiving funds from the United States financial structure.

To add to the unease in Panama City, Banco General is alleged to be currently under investigation by a US law enforcement agency, together with a number of other banks. Americans who own businesses in Panama are now completely unable to pay their staff, and to cover  expenses incurred in the normal course of business. Given Panama's strong laws regarding employee rights, absentee owners face immediate civil, as well as even criminal, liability, for non-payment of salaries and social security taxes.


Additionally, if nonresidents cannot pay their mortgages on Panamanian real estate holdings, the banks will foreclose; personal property or other assets of foreign investors could also be seized, with or without legal action, if Americans default on their obligations.

The abrupt American termination of correspondent account relationships, with banks located in several small Caribbean tax havens, has left several other countries in the region without the ability to transact business with US companies, and there does not seem to be a solution to this vexing problem.