Panama Papers Snares Another Clinton Tax Haven?

Posted on April 11, 2016April 11, 2016 by Denise Simon

First the Panama Papers revealed the Podesta Group. John and Tony Podesta, the founders have connections to a Russian bank which is blacklisted. John Podesta is the architect of the Hillary presidential campaign.

John Podesta, a real operative in the White House for years.

John Podesta was an Obama advisor and upon leaving that role, he said his greatest regret not revealing more about UFO’s. Sheesh…

The mailman must be real busy and overworked at the address below.

This Delaware Address Is Home to 200,000 Shell Companies—Including Hillary Clinton’s

In wake of ‘Panama Papers’ scandal, renewed interest in tax avoidance efforts

FreeBeacon: The address “1209 North Orange Street” in Wilmington, Del., has become known in recent years as the epicenter of U.S. corporate secrecy. The squat, split-level building is the official address of over 285,000 companies, many of which are looking to take advantage of Delaware’s Panama-like secrecy rules, tax incentives, and business-friendly case law.

In the wake of the recent “Panama Papers” scandal, this unassuming brick office has received renewed scrutiny from the Washington Post, the New York Times, the Telegraph, and advocates for corporate tax reform.

But one of its tenants may come as a surprise—a company owned by Democratic presidential frontrunner Hillary Clinton.

Hillary and Bill Clinton quietly set up two shell companies listed at “1209 North Orange Street” in 2008 and 2013, the Washington Free Beacon has found. The names of the companies, but not their location, were first made public in tax filings released by Hillary Clinton last year.

According to records, one of the Clintons’ “1209 North Orange Street” companies is WJC, LLC, which was set up by Bill Clinton in 2008 as a pass-through for his consulting fees.

Another company at the same location, ZFS Holdings, LLC, was set up in February 2013, one week after Hillary Clinton left the State Department. Hillary Clinton received $5.5 million from her book publisher, Simon & Schuster, through the company.

The “1209 North Orange Street” building is the headquarters for the Corporation Trust Company. The firm acts as a registered agent for thousands of corporations that are not actually located in Delaware, including the Clintons’ companies.

Anti-secrecy advocates say the building is prime evidence that Delaware has become a corporate haven that’s comparable to more well-known, offshore locales.

“If you imagined a building with 1,000 corporations in it, you’d imagine a building like the Empire State building,” said Richard Phillips, a senior policy analyst with Citizens for Tax Justice. “But apparently 285,000 companies claim [1209 North Orange Street] is their address.”

“What this shows is this is not really the address of companies that are doing real business. This is the address of a lot of companies that are just shell companies,” he added. “In this case, it doesn’t even look like they have mailboxes. They just claim that address as the places they’re doing business, even though they’re not doing business there.”

Similar registered agents have come under scrutiny in recent years. While campaigning in 2008, President Obama slammed the “Ugland House,” a five-story building in the Cayman Islands that is reportedly home to over 18,000 companies.

“That’s either the biggest building in the world, or the biggest tax scam on record,” said Obama.

The Clinton campaign declined to comment on why the Clintons, who live in New York and have no evident residential ties to Delaware, set up companies in the state. But the presidential candidate isn’t alone. Experts say Delaware is the most popular place to register a company in the United States, due in part to its established system of business case law and tax incentives for intellectual property and real estate holdings.

One of the biggest draws may be the state’s lack of disclosure requirements—businesses can be created completely anonymously, allowing the owners to avoid public detection and even hide income from U.S. authorities.

According to advocates for corporate tax reform, Delaware’s laws rival well-known secrecy havens like the Cayman Islands and Panama.

“General secrecy laws and the ability of these corporations to hide the identities of those who own it, that’s what makes [Delaware] an onshore tax haven, and that’s what makes it just as bad as the Cayman Islands,” said Phillips.

Hillary Clinton has promised to crack down on tax havens on the campaign trail. Referring to the Panama Papers last Wednesday, Clinton condemned “outrageous tax havens and loopholes that super-rich people across the world are exploiting in Panama and elsewhere.”

The Clinton Foundation also has three shell companies in Delaware, according to its amended financial disclosures released last year.

One is the Acceso Fund, LLC, which was registered by the Corporation Trust Company at 1209 North Orange Street in 2009. The Clinton Foundation has used the company to channel money to its Colombia-based private equity fund, Fondo Acceso.

The private equity fund, which is run out of the Clinton Foundation’s Bogota office, has invested in telecom and food processing companies in Colombia, the Free Beacon reported last November.

Another Clinton Foundation company, Acceso Worldwide Fund, Inc., was registered in 2013 by the Corporation Services Company, located in Wilmington, Delaware.

A third company, the Haiti Development Fund, LLC, was registered in 2010 by National Corporate Research, Ltd, located in Dover.

In Delaware, limited liability companies such as WJC, LLC, and ZFS, LLC, are not required to file annual statements disclosing their directors or owners. The Clintons also registered both companies in New York after they were established.

There is no evidence the Clintons are using the entities for any nefarious purposes, and it is perfectly legal for non-residents to set up corporations in Delaware. But even if corporations stay within the law, critics say Delaware shell companies can sometimes be used to legally circumvent taxes in other states.

According to a report published last December by the Institute on Taxation and Economic Policy, Delaware’s popularity as a hub for shell companies is “responsible for the loss of billions of dollars in revenue in other U.S. states.”

“It’s legal tax avoidance,” said Phillips. “We would say it’s immoral, or not the best thing for the country.”

Anti-secrecy advocates also say the laws make it easier for criminals to evade federal taxes or finance terrorism, all under the radar of the public and U.S. authorities.

“Some anonymous shell companies have financed terrorism and supported corruption and human trafficking and Delaware is a traditional hub for creating these fake companies,” said Andrew Hanauer, campaign director at the Jubilee USA Network.

Jubilee USA Network and other groups have been advocating for legislative reform. Sen. Sheldon Whitehouse (D., R.I.), Rep. Peter King (R., N.Y.), and Rep. Carolyn Maloney recently put forward legislation that would force U.S. companies to disclose their actual owners.

The Clinton campaign did comment on whether Hillary Clinton supports the legislation. The campaign also did not comment on whether she or Bill Clinton have any other companies registered in Delaware.

But the concerns over corporate secrecy and tax avoidance have trickled into the Democratic presidential race, with Sen. Bernie Sanders incorporating it into his stump speeches. Clinton has also railed against tax havens on the trail and vowed to take action.

“Some of you may have just heard about these disclosures about outrageous tax havens and loopholes that super-rich people across the world are exploiting in Panama and elsewhere,” said Clinton during a campaign event last Wednesday.

“Now some of this behavior is clearly against the law, and anyone who violates the law anywhere should be held accountable,” she added. “But it’s also scandalous how much is actually legal.”

Invest in Gold, Documents: bin Ladin Agreed

Posted on April 10, 2016April 10, 2016 by Denise Simon

Newly released documents show bin Laden encouraged Al Qaeda leaders to invest ransom money in gold

BusinessInsider: Notorious terrorist leader Osama bin Laden was bullish on gold, telling Al Qaeda leaders in a 2010 letter to invest in the precious metal while “overall price trend is upward,” The New York Times reported this week.

The letter was part of a trove of documents released by the US Office of the Director of National Intelligence last month. In it, bin Laden implores Atiyah Abd al-Rahman, Al Qaeda’s general manager, to earmark $1.7 million of a $5 million ransom for gold bars and coins.

Bin Laden also advocated buying euros, Kuwaiti dinars, and Chinese yuan. He outlined specific instructions on how to spend the money.

“As for the money you received in local currency, it should be gotten rid of, because its value has been declining and it continues to go down,” bin Laden wrote. He then detailed how much of the ransom money should go to various currencies and said al-Rahman should “use the euros first, then the dinars, the yuan and then the gold.”

He then goes on to analyze the outlook on gold.

“The overall price trend is upward,” bin Laden wrote. “Even with occasional drops, in the next few years the price of gold will reach $3,000 an ounce. Right now it is at $1,390 an ounce, but before the events in New York and Washington it was $280 an ounce.”

The Times noted that this would have been a “bad bet,” because on the day the letter was dated, December 3, 2010, gold closed at $1,414.08 an ounce. Today gold is at about $1,230 an ounce.

It’s unclear whether al-Rahman followed bin Laden’s instructions in this case, according to The Times.

Bin Laden wasn’t alone in his assessment of gold’s potential. The Times said:

Bin Laden may have lacked investing acumen — gold peaked at $1,900 an ounce five months after his death in 2011 — but he seems to have had a keen sense of the financial zeitgeist. His belief in gold’s bright future was shared at the time by many Americans and a number of financial luminaries, including George Soros and John Paulson, both of whom were investing heavily in the precious metal. Demand was so high that in 2010, JPMorgan Chase reopened a long-closed vault used to store gold under the streets of downtown Manhattan.

Read the full letter below:

Osama Bin Laden gold letter by Pamela Engel

Could Poland be Getting it Right After Decades?

Posted on April 8, 2016April 8, 2016 by Denise Simon

Poland to demolish about 500 Soviet monuments

UAToday: Russia’s Foreign Ministry compares removal to ISIL’s destruction in Palmyra

Poland plans to demolish about 500 Soviet monuments throughout the country like this one in Warsaw. Polish authority wants to remove all reminders of Soviet invasion and subsequent decades-long political dominance from the streets.

The decision was announced by the Institute of National Remembrance. It’s responsible for investigating crimes against the Polish nation. According to the head of the Institute, the preservation of the monuments was “a fatal mistake” and they should have been demolished in the early 1990s. Polish authority also announced the streets connected with the Communist past of the country must disappear from the Polish cities.

But Polish government will continue to care for the graves of the Soviet soldiers located in Poland.

Andrzej Zawistowski, head of the department of the Institute of national remembrance: “It’s hard to imagine how a monument to Hitler, Goering or other Nazi criminals can stand in Europe. Why should the monuments to Lenin stand? He also had blood on his hands and built a totalitarian state, which lasted much longer than Hitler’s one. This is one reason. Another one is that we want to be masters of our land and decide what we want to do.”

Read also Ukrainian Ministry of Culture gives way to demolishing about 800 Soviet monuments

Each removal of Soviet monuments brings a new round of angry statements from the Russian officials. They accuse Poland of erasing history and threaten the removals “won’t remain unanswered.”

Maria Zakharova, Russia’s Foreign Ministry Spokesperson: “We have just spoken about how ISIS terrorists planted mines inside the monuments of Palmyra. They did this for ideological reasons. The Polish authorities express a desire to tear down memorials to Soviet soldiers for precisely ideological reasons. We demand the preservation of history and its symbols. The authorities in Warsaw should understand that the implementation of plans for a large-scale demolition of Red Army memorials will not go unanswered.”

Read also Google Maps replaces Soviet place names in Ukraine

Poland is not backing down. The monuments are set to be removed by the next year and transferred to museums to become a “witness of hard times.”

*** Going back to 2015:

FILE – In this April 30, 2001 file photo taken in Pieniezno, Poland, graffiti reading “Murderer”, “Shame” and others is seen on the memorial to Soviet General Ivan Chernyakhovsky, who is considered a symbol of the imposition of communism in Poland, but a national hero in Russia. Russian authorities are threatening serious consequences over the gradual dismantling of the monument that started on Thursday, Sept.17, 2015. (AP Photo/Wojtek Jakubowski) POLAND OUT

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WARSAW, Poland (AP) — In a new dispute exposing the complexity of Poland’s relations with Russia, Moscow is threatening Warsaw with “most serious consequences” for dismantling a monument to a Soviet World War II general.

The removal of the 1970s memorial to Gen. Ivan Chernyakhovsky began Thursday in the northern town of Pieniezno, where the general died of wounds in February 1945. He is buried in Russia.

Local authorities argue that Chernyakhovsky crushed units of Poland’s clandestine Home Army during the war and also symbolizes the imposition of communism on Poland.

Poland’s ambassador has been summoned to the Foreign Ministry in Moscow, while Russia’s embassy in Warsaw has issued a “strong protest” and has expressed “deep indignation” over the dissembling of the concrete-and-metal memorial, which it called a “blasphemous act.”

The statement said that Russia has “warned the Polish side many times” that removing such monuments cannot continue “without the most serious consequences.” It did not specify the consequences.

Poland’s Foreign Minister Grzegorz Schetyna insisted Friday that the action is in line with bilateral agreements.

The authorities in Pieniezno want to send Charnyakhovsky’s monument to Russia, where he is a national hero. The Red Army’s role, along with the Allies, in defeating Nazi Germany remains a source of deep national pride in Russia. Some 600,000 Russian troops lost their lives fighting the Nazis on Polish territory. But in Poland the Red Army is associated with the brutal oppression that followed and cost thousands of lives.

The dispute comes as ties are strained over the conflict in Ukraine, where pro-Russian insurgents are waging a separatist struggle. Poland says Moscow is supporting the rebels.

It Continues, Panama Papers Proves the Elite’s Dark World

Posted on April 7, 2016April 7, 2016 by Denise Simon

Panama Papers: How German Biz May Have Empowered Venezuela to Forge Passports for Hezbollah

The massive legal firm data leak known as the Panama Papers have exposed business dealings that allowed the government of Venezuela under Hugo Chávez to use Cuban money to purchase advanced passport technology from Germany. Venezuela would later be accused of falsifying passports for Hezbollah terrorists.

Breitbart: The revelation surfaced as part of the 11.5 million documents leaked to the German newspaper Süddeutsche Zeitung from the Panamanian law firm Mossack Fonseca, later handed over for aid in analysis to a number of journalistic outlets, most prominently the International Consortium of Investigative Journalists (ICIJ). The ICIJ has set up a website to help parse the information in these documents, and one website specifically for the revelations surfacing on the government of Venezuela.

It is there that the ICIJ has revealed in a Spanish-language report that Mossack Fonseca helped the governments of Cuba and Venezuela establish a shell corporation to engage a German technology company to buy state-of-the-art passport printing technology.

According to the report, late dictator Hugo Chávez established a project in 2005 to update the Venezuelan passport system, which would first require identifying a seller of the appropriate technology to approach. Venezuela, then as now, enjoying patronage from the government in Havana, would use Cuban money to buy the new technology. This made the purchase much more difficult, as few respectable corporations would feel comfortable doing business with the communist dictatorship.

Venezuela found a vendor: the German company Bundesdrukerei. In an email surfacing as part of the Panama Papers, a representative of that corporation makes clear: “the fundamental reason why this company does not want to sell to Cuba and Venezuela directly is because of the reputational issue. They fear their competition will create adversarial propaganda against them for selling to totalitarian governments.”

Mossack Fonseca then stepped in to design an elaborate currency exchange system to disassociate Cuba with the funding, a system known in Latin America as a “financial bicycle,” because the money is peddled through so many different currencies as to render its origins barely recognizable. Many corporations use this system to generate income, switching into cheaper currencies with higher interest rates and waiting for the money to grow before returning the money to its original form. In this case, Mossack Fonseca cycled the money through the currencies of at least four countries in addition to Cuba and Venezuela, then put the money in a shell corporation: Billingsley Global Corp. Billingsley bought the technology after receiving an influx of 64 million euros.

Venezuela got its passports, and Cuba retained the right to access and control the software that creates the passports.

Like most of the known revelations in the Pentagon Papers, this exchange is of questionable legality at worst, completely acceptable for a global banking lawyer at best. What makes this particular discovery notable is the years of evidence mounting that Venezuela and Cuba used the Venezuelan passport system to fabricate false documents for Hezbollah terrorists.

A 2015 report estimated that the government of Venezuela has issued over 500 passports to members of the Shiite terrorist group Hezbollah. The terrorists would then use the passports to travel more freely through the Western Hemisphere, as their real identities and nationalities would trigger more thorough investigations into their backgrounds. Spanish reporter Emili Blasco found evidence that current Venezuelan strongman Nicolás Maduro met with Hezbollah leader Hassan Nasrallah in 2007 to discuss an agreement for distributing the fake passports.

A former diplomat in Venezuela’s Baghdad embassy, Misael López Soto, testified before fleeing the embassy in a video posted online that he was forced to flee after receiving multiple death threats for attempting to notify Caracas that his embassy was distributing dozens of falsified birth certificates, passports, and other government documents to known members of Hezbollah. The terrorists would pay between $5000 and S15000 for each document.

A report in February at the UK-based Asharq Al-Awsat cited a former Venezuelan diplomat as alleging that a “Cuban company” had made an agreement with Venezuela to issue the contracts. No details were provided, but such an agreement fits the Panama Papers description of the incident.

The governments of either nation have yet to remark on this particular allegation.

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The Dark Art World, remember the movie the Monuments Men? Seems the art that was looted but some was never recovered or was it?

This is a long yet quite detailed summary of the art world where owner’s names are never mentioned or buried in layers of obscure companies all performed by the Mossack Fonseca law firm. Below are but a few paragraphs. To read the whole summary, go here.

Panama Papers provides unprecedented look at connection between international art trade and offshore secrecy
Billionaire art dealers use offshore company to shield painting allegedly looted by Nazis
Identity revealed of the man secretly behind the 20th century’s most important modern art auction

ICIJ in part: When high-dollar art changes hands, it often lands in a free trade zone known as a freeport. As long as art is housed in the freeport, owners pay no import taxes or duties. Critics worry the freeport system can be used to dodge tax or launder money since precise inventories and transactions are not tracked. According to the international professional services firm Deloitte, 42 percent of art collectors it surveyed said they would likely use a freeport. The oldest freeport, with the most art, is in Geneva. Its complex of storage facilities is said to contain enough treasure to rival any museum in the world.

The Nahmads began as a banking dynasty of Sephardic Jews from Aleppo, Syria. In 1948, Hillel Nahmad relocated his wife and eight children to Beirut.

Three of his sons — Giuseppe, David and Ezra — eventually moved to Milan and, by the early 1960s, had become active art dealers. Giuseppe, the patriarch of the family, had a taste for expensive sports cars and, according to his brother David, once dated Rita Hayworth. He also pioneered treating the art business like a stock market, buying and holding paintings until exactly the right time to sell to maximize profit.

He died in 2012. David assumed the mantel of family leader. He and his older brother Ezra both named their sons Hillel after their grandfather. The two sons both go by Helly. Together the four continue the family business.

The two surviving brothers are worth a combined $3.3 billion, according to Forbes. They live in Monaco, among other locales. In addition to currency trading and art dealing, David Nahmad is also a championship backgammon player. Each son has a namesake gallery. Ezra’s son has the Helly Nahmad Gallery in London and David’s offspring, an identically named one in New York.

The Mossack Fonseca records indicate the Nahmads were early adopters of the benefits of offshoring art.

Fine art dealer and billionaire David Nahmad. Photo: AP Photo / Lionel Cironneau

Giuseppe Nahmad registered International Art Center S.A. in 1995 through the Swiss bank UBS and the Geneva office of Mossack Fonseca. It may have existed in another form prior to that date. A document in the Mossack Fonseca files mentions International Art Center acquiring the pastel “Danseuses” by Edgar Degas in October 1989.

Historical Monastery in Syria Destroyed by ISIS

Posted on April 6, 2016April 6, 2016 by Denise Simon

Christian saint’s bones unearthed in monastery destroyed by ISIS

FNC: A Christian saint’s bones have reportedly been unearthed amid the rubble of an ancient Syrian monastery destroyed by Islamic State.

Mar Elian monastery appears ravaged after heavy fighting between Syrian Army and the Islamic State group in Qaryatain, Syria, Monday, April 4, 2016. (AP Photo/Natalia Sancha)

Much of the fifth-century St. Elian, or Mar Elian, monastery in the town of Qaryatain has been reduced to stones by ISIS. Qaryatain was recaptured by Syrian government forces Sunday.

Channel Four News journalist Lindsey Hilsum reports that the bones of saints were clearly visible among the wreckage of the monastery, a once-cherished pilgrimage site.

The bones of Christian saints in the rubble of St Eliane monastery in #Qaryatayn. #ISIS blew it up last August.pic.twitter.com/Htyipk1k6I

The bones are thought to be those of St. Elian, also known as St. Julian of Emesa, which is the ancient name for the Syrian city of Homs. St. Elian was martyred in 284 A.D. after his refusal to renounce Christianity.

The U.K.-based Syrian Observatory of Human Rights reported that ISIS destroyed the monastery in August 2015. “They pulled it down using bulldozers claiming that ‘the monastery is worshiped beside Allah,’ SOHR said in a statement released Aug. 20 2015.

Militants also trashed an ancient church next to the Assyrian Christian monastery, and desecrated a nearby cemetery, breaking the crosses and smashing name plates.

Bones of saints, chucked into a room, after #ISIS destroyed their resting place at St Eliane monastery #Qaryataynpic.twitter.com/WtzzS7is5A

Related: Syria works to save Palmyra’s treasures as ISIS advances on ancient city

Midway between the ancient city of Palmyra and the Syrian capital, Damascus, Qaryatain was once home to a sizeable Christian population. Before IS took it over last August, it had a mixed population of around 40,000 Sunni Muslims and Christians, as well as thousands of internally displaced people who had fled from the nearby city of Homs.

As it came under militant attack, many of the Christians fled. More than 200 residents, mostly Christians, were abducted by the extremists, including a Syrian priest, the Rev. Jack Murad, who was held by the extremists for three months.

During the eight months that Qaryatain was under IS control, some Christians were released and others were made to sign pledges to pay a tax imposed on non-Muslims. Some have simply vanished.

Syrian forces recaptured Palmyra from ISIS last month, ending their reign of terror at the UNESCO World Heritage site. Palmyra, located about 150 miles northeast of Damascus, dates back to the second millennium B.C. The city was one of the most important cultural centers of the ancient world and has been home to Arabic, Aramaic, and Greco-Roman culture.

ISIS took control of Palmyra last year and subsequently demolished some of its best-known monuments, such as the Temple of Ba’al. The jihadists, who beheaded the city’s former antiquities chief, also used Palmyra’s ancient amphitheater for public executions.

The Associated Press contributed to this report.