Hey, the Mayor of Atlanta has Joined the anti-ICE Movement

Posted on September 7, 2018September 7, 2018 by Denise Simon

Mayor Keisha Lance Bottoms on Thursday signed an executive order for transferring all remaining U.S. Immigration and Customs Enforcement detainees out of the city jail and declaring that Atlanta will no longer hold anyone for the federal agency.

The Democratic mayor’s move follows a separate executive order from June that blocked the jail from taking in any new ICE detainees amid enforcement of the Trump administration’s “zero-tolerance” immigration policy on the southwest border, which split up many immigrant families. Bottoms has vigorously objected to that federal policy.

“Atlanta will no longer be complicit in a policy that intentionally inflicts misery on a vulnerable population without giving any thought to the horrific fallout,” Bottoms told reporters moments before signing her executive order. “As the birthplace of the civil rights movement we are called to be better than this.”

Secretary of State Brian Kemp, Georgia’s Republican nominee for governor, criticized the mayor’s move in a statement he released Thursday afternoon.

“The City of Atlanta should focus on cleaning up corruption and stopping crime — not creating more of it,” he said.

So….how about it Atlanta…what say you about her oath of office?

ORGANIZATIONAL MEETING; OATH OF OFFICE; MANDATORY TRAINING

.

(As taken from the Atlanta City Code of Ordinances)

Section 2-301.-

Organizational meeting; oath of office; mandatory training

.

(a) Organizational meeting.

The council shall meet for organization in the council chamber, or any

other designated public place, on the first Monday in January following each regular election, or, if such Monday is a legal holiday, then on the next following day not a legal holiday.

(b) Oath of office.

At such organizational meeting, the mayor, president of the council, and

council members shall take and subscribe before a judge of the superior court, or any official authorized to administer oaths, the following oath of office: “I do solemnly swear (or affirm) that I will faithfully discharge the duties of the [mayor, president of the council, council member] City Council of the City of Atlanta, Georgia. I will not knowingly permit my vote to be influenced by fear, favor, affection, or reward, and in all things pertaining to my office. I will be governed by the public good

and the interests of the City. I will observe the provisions of the Charter, ordinances, and regulations of the City of Atlanta, and I will support and defend the Constitutions of the State of Georgia and the United States of America. I am not the holder of any office of trust under the government of the United States, any other state, or any foreign state which I am prohibited from holding by the laws of the State of Georgia; I am not the holder of any unaccounted-for public money due this state or any

political subdivision or authority thereof; I have been a resident of the City of Atlanta [and Council District] and am otherwise qualified to hold this office by the Constitution and laws of this State and the Charter and ordinances of the City of Atlanta, so help me God.” More here.

So….Atlanta, (an international city/hub) how about challenging this Mayor on this topic of which Atlanta was part of for starters?

WASHINGTON – Law enforcement officials from the United States and the United Kingdom wrapped up Friday a “week of action” during which they conducted outreach at major international airports with the goal of education about and prevention of female genital mutilation/cutting (FGM/C). This outreach, called “Operation Limelight”, was conducted at four international airports in the U.S.—John F. Kennedy International Airport, Newark Liberty International Airport, Hartsfield-Jackson Atlanta International Airport, and Los Angeles International Airport—and at Heathrow Airport and train stations throughout the UK.

On August 30, law enforcement from the two nations also gathered at the U.S. embassy in London to sign a proclamation affirming their commitment to end the practice of FGM/C in both countries and around the world. The proclamation reads, in part:

“Female genital mutilation/cutting is a global issue that transcends our borders. FGM/C is a culturally-based, gender-specific form of violence and when performed on girls under the age of 18, it is child abuse. The top priorities of the U.K. and U.S. are safeguarding girls through prevention, multi-agency partnership and education. These efforts require that we learn and share our experiences and cooperate through both our informal and formal engagements. Through existing police to police and mutual assistance agreements and arrangements, the U.S. and U.K. law enforcement intend to share intelligence to enhance our knowledge of, and response to female genital mutilation. This collaboration seeks to build our intelligence capacity to identify those involved in perpetrating or facilitating FGM/C offences whilst safeguarding potential victims.”

Signatories of the proclamation include representatives from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Federal Bureau of Investigation, U.S. Customs and Border Protection, London Metropolitan Police Service, UK National Police Chiefs Council, UK Border Force, UK Crown Prosecution Service, and British Transport Police.

“Our agency is committed to pursuing those who commit or allow female genital mutilation. Through outreach and investigations, we will work to eradicate this form of abuse,” said Louis A. Rodi, III, Deputy Assistant Director, National Security Investigation Division, U.S. Homeland Security Investigations. “We value our partnerships with UK law enforcement as well as with other U.S. federal agencies, including the FBI and U.S. Customs and Border Protection. This collaboration strengthens our resolve to carry out this important work to protect women and girls and investigate crimes against them.”

“FGM is a barbaric and violent crime enacted on girls who suffer the results for the rest of their lives. It is child abuse, and no religion, culture or tradition should be allowed to mitigate or make an excuse for such appalling crimes. It is even more traumatic because it is generally committed or facilitated by their families who they should look to for love and protection,” said United Kingdom’s National Police Chiefs’ Council Lead on Female Genital Mutilation Commander Ivan Balhatchet. “FGM is hugely complex to investigate and prosecute. Frequently, the survivor is unwilling to give evidence against those closest to them, and some cases of FGM occur prior to the arrival of the survivor in the UK.

Belhatchet continued, “the US shares the same goal but also the same challenges. This proclamation will mean both the UK and US learn more about FGM, the routes taken by perpetrators and when and where it is committed; this is particularly important because we know that perpetrators continue to adapt to evade detection. We also want this agreement and our joint operation to send a signal to those planning to commit FGM that we will do everything we can to protect girls and prosecute offenders.

“FGM is not something we can eradicate alone. We need everyone who works with children and young people to be alert to signs of FGM and tell [law enforcement] about them. We also need the public and other support groups to speak out and share information with us.”

For more information about the practice of female genital mutilation/cutting, view this video from the U.S. Department of State or visit the United Nations’ Zero Tolerance Day website.

Female genital mutilation/cutting is a federal crime in the United States, and any involvement in committing this crime is a serious human rights violation which may result in imprisonment and potential removal from the U.S. Individuals suspected of female genital mutilation/cutting, including sending girls overseas to be cut, may be investigated by the Human Rights Violators and War Crimes Center (HRVWCC) and prosecuted accordingly.

Established in 2009, the HRVWCC furthers ICE’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, FGM/C, and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the agency’s broader enforcement efforts against these offenders.

Since 2003, ICE has arrested more than 410 individuals for human rights-related violations of the law under various criminal and/or immigration statutes. During that same period, ICE obtained deportation orders against and physically removed 908 known or suspected human rights violators from the United States. Additionally, ICE has facilitated the departure of an additional 122 such individuals from the United States.

Currently, ICE has more than 135 active investigations into suspected human rights violators and is pursuing more than 1,750 leads and removals cases involving suspected human rights violators from 95 different countries. Since 2003, the HRVWCC has issued more than 75,000 lookouts for individuals from more than 110 countries and stopped over 260 human rights violators and war crimes suspects from entering the U.S.

Iran Sleeper Cells Parked Around the U.S.

Posted on August 21, 2018August 21, 2018 by Denise Simon

Primer: Two Individuals Charged for Acting as Illegal Agents of the Government of Iran

Could it be that law enforcement officials are working the cases diligently? This adds a deeper dimension to the work of the FBI, ICE and Border Patrol as well as all diplomatic posts in Central America and Latin America. Iran’s economy is in a free-fall, so money/revenue is most important and illicit activities, including attacks are the easiest method to raise operational funds.

Israel and Stuff » Report: Obama WH obstructed Hezbollah ...

Iranian-backed militants are operating across the United States mostly unfettered, raising concerns in Congress and among regional experts that these “sleeper cell” agents are poised to launch a large-scale attack on the American homeland, according to testimony before lawmakers.

Iranian agents tied to the terror group Hezbollah have already been discovered in the United States plotting attacks, giving rise to fears that Tehran could order a strike inside America should tensions between the Trump administration and Islamic Republic reach a boiling point.

Intelligence officials and former White House officials confirmed to Congress on Tuesday that such an attack is not only plausible, but relatively easy for Iran to carry out at a time when the Trump administration is considering abandoning the landmark nuclear deal and reapplying sanctions on Tehran.

There is mounting evidence that Iran poses “a direct threat to the homeland,” according to Rep. Peter King (R., N.Y.), a member of the House Homeland Security Committee and chair of its subcommittee on counterterrorism and intelligence.

A chief concern is “Iranian support for Hezbollah, which is active in the Middle East, Latin America, and here in the U.S., where Hezbollah operatives have been arrested for activities conducted in our own country,” King said, referring the recent arrest of two individuals plotting terror attacks in New York City and Michigan.

“Both individuals received significant weapons training from Hezbollah,” King said. “It is clear Hezbollah has the will and capability.”

After more than a decade of receiving intelligence briefs, King said he has concluded that “Hezbollah is probably the most experienced and professional terrorist organization in the world,” even more so than ISIS and Al Qaeda.

Asked if Iran could use Hezbollah to conduct strikes on the United States, a panel of experts including intelligence officials and former White House insiders responded in the affirmative.

“They are as good or better at explosive devices than ISIS, they are better at assassinations and developing assassination cells,” said Michael Pregent, a former intelligence officer who worked to counter Iranian influence in the region. “They’re better at targeting, better at looking at things,” and they can outsource attacks to Hezbollah.

“Hezbollah is smart,” Pregent said. “They’re very good at keeping their communications secure, keeping their operational security secure, and, again, from a high profile attack perspective, they’d be good at improvised explosive devices.”

Others testifying before Congress agreed with this assessment.

“The answer is absolutely. We do face a threat,” said Emanuele Ottolenghi, a senior fellow at the Foundation for Defense of Democracies who has long tracked Iran’s militant efforts. “Their networks are present in the Untied States.”

Iran is believed to have an auxiliary fighting force or around 200,000 militants spread across the Middle East, according to Nader Uskowi, a onetime policy adviser to U.S. Central Command and current visiting fellow at the Washington Institute for Near East Policy.

At least 50 to 60 thousand of these militants are “battle tested” in Syria and elsewhere.

“It doesn’t take many of them to penetrate this country and be a major threat,” Uskowi said. “They can pose a major threat to our homeland.”

While Iran is currently more motivated to use its proxies such as Hezbollah regionally for attacks against Israel or U.S. forces, “those sleeper cells” positioned in the United States could be used to orchestrate an attack, according to Brian Katulis, a former member of the White House National Security Council under President Bill Clinton.

“The potential is there, but the movement’s center of focus is in the region,” said Katulis, a senior fellow at the Center for American Progress.

Among the most pressing threats to the U.S. homeland is Hezbollah’s deep penetration throughout Latin America, where it finances its terror activities by teaming up with drug cartels and crime syndicates.

“Iran’s proxy terror networks in Latin America are run by Tehran’s wholly owned Lebanese franchise Hezbollah,” according to Ottolenghi. “These networks are equal part crime and terror” and have the ability to provide funding and logistics to militant fighters.

“Their presence in Latin America must be viewed as a forward operating base against America’s interest in the region and the homeland itself,” he said.

These Hezbollah operatives exploit loopholes in the U.S. immigration system to enter America under the guise of legitimate business.

Operatives working for Hezbollah and Iran use the United States “as a staging ground for trade-based and real estate-based money laundering.” They “come in through the front door with a legitimate passport and a credible business cover story,” Ottolenghi said.

The matter is further complicated by Iran’s presence in Syria, where it has established not only operating bases, but also weapons factories that have fueled Hezbollah’s and Hamas’s war on Israel.

Iran’s development of advanced ballistic missile and rocket technology—which has continued virtually unimpeded since the nuclear deal was enacted—has benefitted terror groups such as Hezbollah.

“Iran is increasing Hezbollah’s capability to target Israel with more advanced and precision guided rockets and missiles,” according to Pregent. “These missiles are being developed in Syria under the protection of Syrian and Russian air defense networks.”

In Iraq, Iranian forces “have access to U.S. funds and equipment in the Iraqi Ministry of Defense and Iraq’s Ministry of Interior,” Pregent said.

The Trump administration has offered tough talk on Iran, but failed to take adequate action to dismantle its terror networks across the Middle East, as well as in Latin American and the United States itself, according to CAP’s Katulis.

“The Trump administration has talked a good game and has had strong rhetoric, but I would categorize its approach vis-à-vis Iran as one of passive appeasement,” said Katulis. “We simply have not shown up in a meaningful way.”

K2/Spice Overdoses, Sadly Very Common

Posted on August 16, 2018August 16, 2018 by Denise Simon

It is sold at convenience stores and costs $20-$50 per 3 grams. It is legal and is undetectable in drug tests.

It has a few names other than laced marijuana, such as K2, Spice, Genie, Mojo or Zohai. Head shops sell it as for the most part it is not regulated in the United States but is banned in most of Europe.

One K2 sample tests negative for Fentanyl as New Haven ...

Synthetic cannabinoid users report some effects similar to those produced by marijuana:

elevated mood
relaxation
altered perception—awareness of surrounding objects and conditions
symptoms of psychosis—delusional or disordered thinking detached from reality

Psychotic effects include:

extreme anxiety
confusion
paranoia—extreme and unreasonable distrust of others
hallucinations—sensations and images that seem real though they are not

People who have used synthetic cannabinoids and have been taken to emergency rooms have shown severe effects including:

rapid heart rate
vomiting
violent behavior
suicidal thoughts

More here

***

Chinese manufacturers are shipping thousands of pounds synthetic chemicals into the U.S. to make dangerous recreational drugs – and it’s all legal.

The Drug Enforcement Agency and U.S. lawmakers are struggling to keep up with the influx of new, completely untested, compounds that Chinese chemists offer up online.

Websites for Chinese manufacturers advertise of host of chemical substances that can be bought legally by American citizens and shipped to the U.S.

The drugs go by street names like Spice, Bath Salts, Molly, Smiles and N-bomb. They are meant to mimic the effects of marijuana, cocaine, LSD and other banned substances. Many forms of these drugs were legal until only very recently. More here.

***

More than 70 people overdosed in or around a historic Connecticut park near the Yale University campus on Wednesday after receiving what authorities believe was synthetic marijuana laced with the powerful opioid fentanyl. Although there have been no deaths, at least two people suffered life-threatening symptoms, according to authorities.

Connecticut Public Radio‘s Diane Orson reports that at least one person has been arrested in connection with the case.

“After 8:00 [a.m. Wednesday], we ended up with 12 victims in a 40-minute period. That caused us to respond with a multi-casualty incident,” New Haven Fire Chief John Alston said. “It brought out Yale New Haven Hospital, New Haven Police Department, Fire Department, [American Medical Response]. We also have representatives with the DEA here.”

Rick Fontana, the director of emergency operations for New Haven, told Connecticut Public Radio’s Tucker Ives that 72 people were transported to local hospitals while four patients refused treatment on scene, for a total of 76 cases.

“Only a few required admittance to the hospital, and most were discharged or left before any treatment,” Fontana told Ives.

Most of the overdoses occurred on the New Haven Green, a downtown park adjacent to Yale.

“We literally had people running around the Green providing treatment,” Fontana said Wednesday, according to The Associated Press.

“Do not come down to the Green and purchase this K2,” New Haven Police Chief Anthony Campbell told WVIT-TV. “It is taking people out very quickly, people having respiratory failure. Don’t put your life in harm.”

The AP reports, “Paramedics and police officers remained at the park all day as more people fell ill. Some became unconscious and others vomited, authorities said. Emergency responders rushed to one victim as officials were giving a news conference nearby late Wednesday morning.”

Connecticut Public Radio reports:

“[Fire Chief] Alston says the substance appears to be some type of synthetic cannabis, but authorities are not sure. Some of the victims were unconscious and in respiratory distress.

At first, the drug [naloxone] — used to treat narcotic overdoses — appeared not to work. ‘Narcan was not effective here at the scene,’ said Alston. ‘However higher concentrations of it in the emergency room proved effective.’

He says one of the victims still had some of the drug, which has been sent off to a lab for testing.”

The Hartford Courant said authorities had determined that patients had smoked the synthetic cannabinoid K-2 laced with fentanyl.

Officer David Hartman was quoted by the newspaper as saying the patients were being treated for overdose-related respiratory illnesses.

WVIT reports that the man arrested “is believed connected to at least some of the overdoses” and “had drugs on him at the time of his arrest, [but] has yet to be charged in any of the overdose cases.”

Gov. Dannel Malloy said Wednesday that the state Department of Public Health and the Department of Mental Health and Addiction Services were assisting New Haven with the rash of overdoses.

“Today’s emergency is deeply troubling and illustrative of the very real and serious threat that illicit street drugs pose to health of individuals,” Malloy said, according to the Hartford Courant. “The substance behind these overdoses is highly dangerous and must be avoided.”

The AP notes, “New Haven first responders were called to a similar overdose outbreak on the Green on July 4, when more than a dozen people were sick from synthetic marijuana. The city also saw more than a dozen synthetic marijuana overdoses in late January. No deaths were reported in either outbreak.”

The latest incident in Connecticut comes as new preliminary estimates on 2017 overdose deaths were released by the Centers for Disease Control and Prevention.

The CDC said a record 72,000 Americans died last year because of drug overdose — about 10 percent higher than previous figures. It said major causes of the increase in deaths are the growing number of people using opioids and the increased potency of the drugs themselves.

Racketeering and the Bloody Streets of Chicago

Posted on August 6, 2018August 6, 2018 by Denise Simon

The news reports, the headlines and numbers are head-shaking. It has to be difficult to listen to the police radios calling due to emergencies all over the city. The reporters are tasked with getting names, ages, locations and getting interviews and responses from law enforcement.

Merely reading the article from the Chicago Tribune from a very bloody weekend in Chicago was hard to finish. Getting crime statistics from the Windy City is one thing, believing them is another.

Is crime just part of Chicago’s DNA, a permanent condition given those like Dillinger, Capone or Durkin? From the earliest days of the Bureau, it was clear that agents were permanently needed in two cities—New York and Chicago. By July 21, 1908, several days before the FBI’s official birthday, the Department of Justice had assigned four special agents to Chicago.

The FBI Chicago Field Office grew larger.

On August 27, 1964, the Chicago Division moved into new space located in the just completed E.M. Dirksen Federal Building and Courthouse. Located at 219 South Dearborn Street in Chicago’s “Loop,” the Chicago FBI occupied the entire ninth floor of the building. Marlin W. Johnson was the special agent in charge, and the office included 281 special agents and 185 support employees. The Dirksen building remained the home of the division for the next 42 years. During that time, the office expanded to occupy the entire eighth and 10th floors and part of the 11th floor.

In October 1969, violent members of a radical group known as the Students for a Democratic Society (SDS) bombed a Chicago police memorial and fomented the “Days of Rage” riot in Chicago. An offshoot of SDS called the Weathermen—later the Weather Underground Organization—which evolved into a domestic terrorist group that used bombings, robberies, arson, and other illegal acts to further its radical political agenda. Chicago agents, along with other field offices across the country, thoroughly investigated this organization and its activities. In 1974, the Chicago Division produced an extensive summary of the group’s motivations and activities.

The FALN (Fuerzas Armadas de Liberación National/Armed Forces of National Liberation)—which advocated Puerto Rican Independence—was another 1970s terrorist group subject to intense investigation by the Chicago Division. In the early morning hours of October 27, 1975, bombs exploded outside three Chicago Loop office buildings, including the Sears Tower. A fourth device was found outside the Standard Oil building, but was disarmed before detonating.

In the late 1970s, the division opened what ended up being the FBI’s longest-running domestic terrorism investigation. On May 28, 1978, a bomb exploded at the University of Illinois at Chicago, injuring one individual. In 1979, an FBI-led task force that included the Bureau of Alcohol, Tobacco, and Firearms and the U.S. Postal Inspection Service was formed to investigate the “UNABOM” case—code-named for the UNiversity and Airline BOMbing targets involved. Sixteen more bombings took place over the next 17 years, killing three and injuring more than 20 people. FBI Chicago, along with nearly all of the FBI’s 56 field offices, pursued this terrorist throughout the 1980s and into the 1990s. After an extensive investigation—and a tip from the bomber’s brother—the FBI arrested Theodore Kaczynski in April 1996. Kaczynski ultimately pled guilty and was sentenced to life in prison for his crimes.

Operation Family Secrets—began in 1999 and culminated in 2005 with the indictment and arrest of 14 known or suspected members of a Chicago organized crime group for 18 unsolved mob hits. A Chicago policeman and Cook County sheriff’s deputy were also charged. The defendants all either pled guilty, were convicted in court, or died prior to trial. Read more detail here.

So, now we have a sanctuary city where gangs and illegals own the streets. Mayor Rahm Emanuel either cant get control of the city or refuses to do so. So, the people of Chicago are protesting, demanding he resign. While there is clearly political corruption in the Mayor’s office, racketeering is nothing new in Chicago. Remember Tony Rezko? He was a former fundraiser for Obama and close friend. Then there was the mortgage scandal for the land slated to be part of the Olympic Park in 2009. Moving forward to 2018, there are shady operations going on with the Obama Presidential Library.

But is there corruption within the ranks of Chicago law enforcement? Appears so.

Just this part February, multiple members of a Chicago Police Department anti-gang unit have been stripped of their authority following a federal probe into allegations that they robbed drug dealers.

In 2016, 762 homicides last year and more than 4,000 people wounded—has been described as an epidemic. Primarily gang-related, the shootings are often spontaneous and unpredictable, and the toll on victims, families, and entire communities cannot be overstated. That’s why the FBI’s Chicago Division, working with the Chicago Police Department (CPD) and other agencies, has undertaken significant measures to address the problem.

Flowers, candles, and a t-shirt that says “Justice for Marc” mark the spot where an individual was killed in Chicago. photo

The tasks appear to be too daunting for the FBI in Chicago as they work with law enforcement officials.

That effort involves three major areas:

The creation in 2016 of a homicide task force—in addition to the FBI’s existing violent crimes squad—in which agents work alongside CPD detectives and other law enforcement officers to assist in solving the city’s murder cases;

Increased intelligence-gathering efforts to identify shooters and “directors of violence,” which includes embedding FBI analysts at CPD headquarters; and

Stepping up community outreach efforts to gain the public’s trust and enlist their help in solving crimes and making communities safer.

Legislation Proposed on Front Co.’s/Foreign Investment

Posted on July 31, 2018July 31, 2018 by Denise Simon

Frankly, Britain has a much worse issue, but big hat tip to Senator Rubio. There are cities in America which are pockets of some nasty dark money in real estate.

There needs to be some real reform to CFIUS, Committee for Foreign Investment in the United States.

Crackdown on dirty money shook Miami real estate. Now, Rubio wants to take it national

Washington– In a move with significant implications for the U.S. housing market, Florida Republican Sen. Marco Rubio is seeking to take a Treasury Department crackdown on dirty money in luxury real estate and expand it from a few high-priced enclaves to the entire nation.

Rubio says his proposal is an attempt to root out criminals who use illicit funds and anonymous shell companies to buy homes — a form of money laundering that hides the cash’s tainted origin from law enforcement and banks. The widespread practice enables terrorism, sex trafficking, corruption, and drug dealing by providing an outlet for dirty cash, according to transparency advocates.

Through an amendment to an unrelated major spending bill, Rubio will ask Treasury to study whether government regulators should force shell companies that buy homes priced at $300,000 or more in cash nationwide to disclose their owners. That could be a figure as high as 10 percent of the nation’s real-estate deals.

A similar reporting requirement affecting transactions priced at $1 million or more has already had a chilling effect on all-cash corporate sales in Miami-Dade County, which has been under Treasury’s microscope since 2016.

“Shell companies involved in shady activities are a big problem, especially throughout South Florida,” Rubio said in a statement to McClatchy and the Miami Herald. “With this provision, a study would be conducted to look at requiring all shell companies that make cash transactions, regardless of their area, to disclose their identities.”

The amendment builds on a previous Treasury disclosure order that applied only to certain markets, including South Florida.

That order — which forced shell companies buying homes with cash to reveal their true owners to the government — has been in place in some areas since March 2016 at various price points. Its effects were immediate and stunning. As soon as the order took hold, shell companies buying homes with cash dropped off the map, a recent study by academic economists found. In Miami-Dade, the number of corporate cash sales plummeted 95 percent, although a strong overall market suggests creative buyers found ways to circumvent the rules, researchers said.

Before the crackdown, corporate cash sales accounted for roughly a third of home-sale volume in Miami-Dade, which is popular with foreign investors.

The amendment has the support of the top Democrat on the Senate Finance Committee, Oregon’s Ron Wyden, as well as Rhode Island Democratic Sen. Sheldon Whitehouse. Both have tried to widen disclosure of true owners of shell companies, which can be listed in the names of lawyers, accountants, and other fronts. The lack of corporate transparency frustrates law-enforcement officials, who say it stymies their investigations.

A vote is expected on the overall bill as soon as this week, Rubio’s office said.

The powerful real-estate industry has fought attempts from the government to have it act as a watchdog against money laundering, as banks, precious-metals dealers, money-service businesses, and other financial institutions are required to do. Many Realtors and developers say their clients are simply wealthy buyers seeking privacy, not criminals.

But over the past two years, Treasury has moved with force into what had been a largely unregulated sector of the U.S. financial system. Starting in Miami-Dade County and Manhattan two years ago, Treasury’s Financial Crimes Enforcement Network (FinCEN) began requiring anonymous shell companies to disclose their true owners when they bought pricey homes with cash.

The temporary directives — called “geographic targeting orders” or GTOs — were later expanded to other housing markets in Florida, New York, Texas, California, and Hawaii where foreign and anonymous investors are gobbling up real estate and driving up prices. The rules require title agents to identify the owners of shell companies buying homes with cash and disclose their names to the federal government.

“The GTOs are working, and it’s time they were expanded. Laundering money through real estate isn’t new, but [what is new is] an effective approach to combat dirty money,” said Clark Gascoigne, deputy director of the Financial Accountability and Corporate Transparency (FACT) Coalition, a watchdog nonprofit.

Rubio’s proposal to take the project national, Gascoigne added, “sends a strong message that we’re serious about protecting the U.S. financial system, the real-estate market, and communities across the country.”

Stephen Hudak, a spokesman for FinCEN, declined to comment.

Cracking down

The Rubio amendment asks Treasury to consider expanding the FinCEN directive to include all cash real-estate transactions over $300,000 anywhere in the United States.

It would give Treasury 180 days to submit a study to Congress providing details about the data that has been collected by FinCEN since 2016 and how it is being used. The agency is also being asked to determine if it needs more authority to combat money laundering and whether expanding the targeting order would be of use. In addition, FinCEN is asked if a registry of company owners — something supported by a bipartisan cast of federal legislators — would help authorities fight money laundering, tax evasion, election fraud, and other illegal activities.

Read More

Rubio Whitehouse Wyden FinCEN GTO amendment.pdf

Previously, the FinCEN disclosure requirement kicked in for corporate cash sales that were priced at $3 million or higher in New York City, $1 million or higher in Miami-Dade, Broward, and Palm Beach, and at different price points in other states. In May, FinCEN enacted a new directive that secretly lowered the number to $300,000 in all GTO areas. Sources familiar with the agency’s thinking say the new order was kept confidential because regulators don’t want to give money launderers a road map for structuring their transactions to avoid reporting.

Rubio’s amendment would start at that lower price point, covering a major chunk of home sales nationwide. Last year, the median U.S. home sold for a price of $247,200, according to the National Association of Realtors.

A cash transaction is one in which there is no mortgage and the property is purchased outright. Cash doesn’t just mean stacks of greenbacks; it also includes such financial instruments as wire transfers, checks, and money orders. Unlike mortgages, cash deals don’t involve heavy scrutiny from banks, which can identify potential money laundering and file suspicious-activity reports to the feds.

The 2016 publication of the Panama Papers spotlighted how anonymous shell companies in faraway tax havens were used to camouflage property purchases in the United States by politicians, drug traffickers, and financial fraudsters. Housing analysts argue that the flow of anonymous money is driving up prices.

“There’s hardly a metropolitan area in the country that is not experiencing a real public-policy issue regarding affordable housing,” said Ned Murray, a housing expert and associate director of Florida International University’s Metropolitan Center. “The whole focus of the real-estate industry is on … supplying homes for wealthy investors that we don’t know much about. It really is a factor for prices and supply.”

Much of the world has responded to the threat of corruption in real estate by requiring greater ownership disclosure. The United States has done relatively less, although Rubio’s amendment could help close the gap.

Those operating in the shadows of the real-estate market certainly seem aware of the Treasury disclosure requirements — and are working to get around them.

Take Carmelo Urdaneta Aqui, who is the former legal counsel to the Venezuelan Ministry of Oil and Mining. He was recently among those charged in a federal $1.2 billion money-laundering case involving funds stolen from Venezuela’s state oil company.

When Urdaneta prepared to close on a brand-new, $5.3 million condo at the Porsche Design Tower in Sunny Isles Beach, he was informed by paperwork from the developer that “taking title [to the unit] under a company or trust may trigger FinCEN reporting requirements,” according to a federal indictment filed last week. He was worried enough about the disclosure that he discussed how to avoid it with a government informant.

Ultimately, Urdaneta set up a company in his wife’s name to do the deal, prosecutors allege.

Developer Gil Dezer’s company built the Porsche Design Tower in Sunny Isles Beach, where units sell for millions of dollars to wealthy out-of-towners.

David Santiago [email protected]

Dezer Development did not say why it alerts potential buyers that they might end up on Treasury’s radar.

“All language relating to legal requirements associated with closings was prepared by Dezer Development’s outside legal counsel,” a spokeswoman wrote in an email to the Herald on Monday.

The 60-story Porsche Design Tower is famous for a car elevator that allows owners to park in “sky garages” within their units. On Friday, federal prosecutors indicated that they would move to seize the unit.

Bad for brokers?

While overall home sales held steady even after the FinCEN rule went into place, the real-estate study found, luxury home prices were slightly softer in markets affected by the GTO.

That suggests that expanding the GTO could have a dampening effect on the nation’s real-estate market, said Jeff Morr, a luxury real-estate broker at Douglas Elliman and chairman of the Miami Master Brokers Forum, an industry group.

“Does it stop money laundering? Probably, yes,” Morr said. “Is it good for the real-estate market? Probably, no.”

But at least making the rule nationwide might take some of the heat off Miami, he said.

“It may make Florida less unattractive now that it’s everywhere,” Morr said. “We shouldn’t be treated differently than other areas.”

The crane has become the unofficial city bird of Miami during the latest construction boom.

Miami Herald

That was exactly the sentiment of the Miami-Dade County Commission when the rule was first enacted in 2016. At the time, commissioners passed a symbolic resolution asking regulators to stop singling out Miami for special scrutiny. The industry still feels the same way.

Legitimate buyers need privacy, too, said Ron Shuffield, president and CEO of EWM Realty International.

“There are wealthy people who don’t want everyone to know that they live at the end of the block,” Shuffield said. “If someone is determined to launder money, they can pick anywhere in the country to do it, from the smallest city in the Midwest to Miami or New York City. It’s only fair that every area have to report. Otherwise, the rules could be scaring people away from certain markets.”