Analysis and Commentary by a former Money Launderer ~ Mr. Kenneth Rijock |
Sunday April 22, 2012 - REPRINT ALERT -
REPUBLIC OF PANAMA ~ A COUNTRY OF CORRUPTION, FRAUDSTERS, COCAINE & MONEY LAUNDERING | PART 1 - SERIES 1 |
Reports abound that more than one thousand real estate frauds have been committed in theRepublic of Panama in the past three years. Most of the victims are from the European Union, the United States and Canada, and they share one thing in common: the fraudsters who exploited those utilized corporations with bearer shares to accomplish their criminal objectives. here's how it works:
(1) A purchaser of real estate is advised, by his broker, attorney or other professional, to take title in the name of a corporation, whether for purposes of secrecy, for tax avoidance, or to avoid disclosure of his or her assets overseas.
(1) A purchaser of real estate is advised, by his broker, attorney or other professional, to take title in the name of a corporation, whether for purposes of secrecy, for tax avoidance, or to avoid disclosure of his or her assets overseas.
(2) A Panamanian corporation is selected by the client's advisor; this company has 
bearer shares which possess what I regard as two fatal flaws. The name of the owner of such shares never appears anywhere on the certificate, and they are the property of whomever has physical possession.
bearer shares which possess what I regard as two fatal flaws. The name of the owner of such shares never appears anywhere on the certificate, and they are the property of whomever has physical possession.
Furthermore, there is no registry maintained with corporate records identifying shareholders by name.
(3) To obtain the necessary bank loan to purchase the realty, the client executes a security agreement, or escrow agreement, or some other contractual obligation, all of which serve to use the shares as collateral for the loan. Sometimes the documents operate to transfer ownership of the shares to the financial institution that is the lender.
(4) Now its interesting; the fraudster, with the collusion of a corrupt (and well paid) Notary Public, forges the purchaser's signature on a document, which is notarized in the total physical absence of the purported signer (the client) and title is immediately transferred over to the fraudster.
(5) the client closes on the purchase, takes possession, begins to make monthly mortgage payments, only to learn months later that an unknown party has legal and equitable title, and is seeking to take possession; It becomes a nightmare, which only gets worse.
(6) The client retains a Panamanian attorney, who seeks civil, and in some cases, criminal, relief, only to find out that the local judiciary is corrupt, and that a bribe was probably paid to a judge to sit on the case indefinitely.
(3) To obtain the necessary bank loan to purchase the realty, the client executes a security agreement, or escrow agreement, or some other contractual obligation, all of which serve to use the shares as collateral for the loan. Sometimes the documents operate to transfer ownership of the shares to the financial institution that is the lender.
(4) Now its interesting; the fraudster, with the collusion of a corrupt (and well paid) Notary Public, forges the purchaser's signature on a document, which is notarized in the total physical absence of the purported signer (the client) and title is immediately transferred over to the fraudster.
(5) the client closes on the purchase, takes possession, begins to make monthly mortgage payments, only to learn months later that an unknown party has legal and equitable title, and is seeking to take possession; It becomes a nightmare, which only gets worse.
(6) The client retains a Panamanian attorney, who seeks civil, and in some cases, criminal, relief, only to find out that the local judiciary is corrupt, and that a bribe was probably paid to a judge to sit on the case indefinitely.
The fraudster may warn the client that he is connected to the President of Panama 
(which may be true), that the client will never succeed in court, and that he actually may be arrested if he pursues his claim.
(which may be true), that the client will never succeed in court, and that he actually may be arrested if he pursues his claim.
Reports that business partners of the president are committing these fraudulent acts have circulated throughout Panama City.
(7) The client is caught between the proverbial rock and a hard place: he is legally obligated on the mortgage, but he is no longer the owner, and he may even been evicted from the premises, by the authorities, acting on behalf of the new "owner," who may try a number of ploys, including forcing his former client to pay "rent" on the real estate, which, in addition to the mortgage payments, may be too much for client to bear. He returns to his country, and the fraudster then sells the real estate, or looks for another victim, whom he may try to sell the same realty to, and perpetrate his next bearer share fraud.
(8) This type of fraud has exploded in Panama during the past three years, and nobody in government appears to want to stop it.
(7) The client is caught between the proverbial rock and a hard place: he is legally obligated on the mortgage, but he is no longer the owner, and he may even been evicted from the premises, by the authorities, acting on behalf of the new "owner," who may try a number of ploys, including forcing his former client to pay "rent" on the real estate, which, in addition to the mortgage payments, may be too much for client to bear. He returns to his country, and the fraudster then sells the real estate, or looks for another victim, whom he may try to sell the same realty to, and perpetrate his next bearer share fraud.
(8) This type of fraud has exploded in Panama during the past three years, and nobody in government appears to want to stop it.
NOTE: Does anyone who is sane want to risk their savings and invest in the Republic of Panama?
WANTED SA kindly thanks Kenneth Rijock, Associated Press, DEA, FBI, Westlaw, Arutz Sheva, and all the Parties, Press, Journalists, Law Enforcement and Securities Groups who have contributed to the many articles and their sincere opinions and statements.
WANTED SA confirms that the majority of the banks in the Republic of Panama support excellent anti money laundering efforts and will close any bank account suspected of any form of illegal activities. The majority of the banks retain excellent Compliance and Due Diligence Bank Officers.
WANTED SA states that the facts and opinions stated in this article are those of the author and not those of WANTED SA. We do not warrant the accuracy of any of the facts and opinions stated in this article nor do we endorse them or accept any form of responsibility for the articles.
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