Category Archives: IRS White House Collusion

The Temerity of Mook, Podesta and Hillary in Campaign Policy

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Beyond the whole server-gate email hell scandal, the Hillary campaign policy team led by Robby Mook and John Podesta; they concocted a campaign finance reform plan that leaves one shuddering and in shock.

Hillary Clinton set to unveil campaign finance proposal

“We have to end the flood of secret, unaccountable money.”

 NEW YORK — Kicking off a post-Labor Day push to rally support as Bernie Sanders maintains momentum and Joe Biden contemplates a White House bid of his own, Hillary Clinton on Tuesday will unveil a three-pronged campaign finance proposal that her team hopes will help her appeal to unconvinced liberals.

The policy platform — which largely reflects principles that Clinton regularly mentions on the campaign trail, to reliable cheers from Democrats — calls for the overturning of 2010’s Citizens United v FEC decision that paved the way for the creation of super PACs; the implementation of a more rigorous political spending disclosure regime; and a new public matching system for small donations to presidential and congressional campaigns.

“We have to end the flood of secret, unaccountable money that is distorting our elections, corrupting our political system, and drowning out the voices of too many everyday Americans,” Clinton said in a statement. “Our democracy should be about expanding the franchise, not charging an entrance fee. It starts with overturning the Supreme Court’s Citizens United decision, and continues with structural reform to our campaign finance system so there’s real sunshine and increased participation.”

The Democratic front-runner, who raised the most campaign funds of any candidate on either side of the aisle in the second quarter ($47.5 million), regularly rails against the Citizens United decision on the stump, using it as an example of the malfunctioning political system. She also frequently insists that she would use overturning the decision as a litmus test for appointing Supreme Court justices, a line that delights progressive voters, and a point that is included in her new proposal.

But portions of her plan are anathema to Republican candidates and their colleagues in Congress, and Clinton is not the only Democrat making such noises on the campaign trail. Sanders, for example, has also pushed public financing for campaigns.

To further complicate matters, a collection of liberal groups have questioned Clinton’s close ties to Wall Street and its big-money donors due to her time as first lady and as a senator from New York — not to mention the existence of Priorities USA Action, the primary super PAC backing her bid, which raised $15.6 million in the first half of 2015.

Still, her plan amounts to liberal red meat, hitting a handful of points championed by campaign finance reformers. And it comes as her campaign appears set to fight back more aggressively against Sanders’ surge and the negative headlines about her private email arrangement.

Clinton’s campaign finance proposal includes a plan to provide matching funds for small donations, along with lower limits for contributions to candidates who opt into the system. Campaigns would only be eligible to receive up to a certain level of the public matching funds, and they would have to raise a minimum number of small donations in the first place to qualify. The specific numbers and dollar figures are yet to be determined.

The campaign’s plan, which will come alongside a new video to be released on Tuesday, also formally repeats the candidate’s plan to only appoint Supreme Court justices who would overturn Citizens United — a case that was originally brought over an anti-Clinton video in 2008. It also reiterates her support for a constitutional amendment that would “establish common sense rules to protect against the undue influence of billionaires and special interests and to restore the role of average voters in elections.”

The third prong of the plan includes a proposal to force outside groups with large political spending budgets to disclose their largest donors in a timely fashion, as well as to disclose “significant transfers between” such groups. It also supports a proposal in front of the Securities and Exchange Commission to force publicly traded companies to disclose political spending to shareholders.

As a Republican-controlled Congress is unlikely to move on many of these proposals, Clinton also says she would sign an executive order that would require federal contractors to disclose their own political spending.

Clinton is set to campaign in the swing states of Ohio and Wisconsin this week, after an address explaining her support of the Iran agreement in Washington on Wednesday.

*** Now for just one interesting fact on Hillary and Bill:

Nemazee is well connected by the way.

There’s a Lot More to Arrested Financier Hassan Nemazee’s Past Than Just Being a ‘Clinton Fundraiser’

2009: Nemazee was much more than just a Clinton fundraiser — he was a bipartisan financier of the influence bazaar that American politics has become

WhoWhatWhy.com reports exclusively on the background of Hassan Nemazee, the top Hillary Clinton fundraiser who was arrested and charged with forging loan documents. Early media accounts cast the event as an embarrassment for Ms. Clinton and the Democratic Party involving the financial misdoings of one prominent backer. Actually it is much more.  Behind the Nemazee arrest lies a sprawling cautionary tale of presidents, would-be presidents, and the shadow world of wealthy operators who cozy up to them for their own gain.  It reaches into the Bush operation as well as that of the Clintons, and is a microcosm of an influence bazaar that has gone global along with the economy.

On August 25th, Hassan Nemazee, a top fundraiser for Hillary Clinton,  was arrested and charged with forging loan documents in order to borrow $74 million from Citibank. He could face up to 30 years in prison. Early media accounts cast the event as an embarrassment for Ms. Clinton involving the financial misdoings of one prominent backer. Actually it is much more.

Behind the Nemazee arrest lies a sprawling cautionary tale of presidents, would-be presidents, and the shadow world of wealthy operators who cozy up to them for their own gain.  It reaches into the Bush operation as well as that of the Clintons, and is a microcosm of an influence bazaar that has gone global along with the economy.

Hassan Nemazee, who served as a finance director for Hillary Clinton’s 2008 presidential campaign, began raising sizable sums for the Democratic National Committee in the mid-nineties. In 1998, in the midst of the Lewinsky affair, Nemazee collected $60,000 for Bill Clinton’s legal defense fund in $10,000 increments from relatives and friends.

The following year, President Clinton nominated the money manager and investor to be ambassador to Argentina. Then an article in Forbes raised questions about his business practices. Among other things, Nemazee, an Iranian-American, had magically turned himself into an “Hispanic” by acquiring Venezuelan citizenship in order to fulfill the minority-ownership requirement of a California public pension fund. The nomination was withdrawn.

That embarrassment did not, however, hamper Nemazee’s rise within the Democratic Party. By 2004 he was New York finance chair for John Kerry’s campaign, and in 2006 he served under Senator Chuck Schumer as the national finance chair of the Democratic Senatorial Campaign Committee (DSCC).  During this period the committee raised about $25 million more than its Republican counterpart.
By 2008, Nemazee was one of Hillary Clinton’s inner circle, and was being publicly touted as a top foreign policy adviser. When another major fundraiser, a clothing manufacturer named Norman Hsu, was arrested and unmasked as a swindler, it was Nemazee who was trotted out to defend Ms. Clinton and argue that she knew little about Hsu.
But she should have known plenty about Nemazee. In 2005, Nemazee and his business partner, Alan Quasha, went deep into the Clinton circle to hire Terry McAuliffe, the Clinton confidante and former chairman of the Democratic Party, for Carret Asset Management, their newly acquired investment firm. During the interregnum between McAuliffe’s party chairmanship and the time he officially joined Hillary Clinton’s campaign as chairman, Nemazee and Quasha set McAuliffe up with a salary and opened a Washington office for him.  There he worked on his memoirs and laid the groundwork for Ms. Clinton’s presidential bid.
In March 2007, Nemazee, at the behest of McAuliffe, threw a dinner for Ms. Clinton at Manhattan’s swank Cipriani restaurant, which featured Bill Clinton and raised more than $500,000. In 2008, after Barack Obama gained the nomination, Nemazee raised a comparable sum for him.
But it is not fair to characterize Nemazee as an embarrassment to Democrats alone. Nemazee’s profile is considerably more complicated. For legal representation in his current troubles, for example, Nemazee has retained Marc Mukasey, a partner in Rudolph Giuliani’s law firm and the son of Michael Mukasey, who served as George W. Bush’s last Attorney General.
There’s more than choice of counsel involved. Before moving into the Democratic camp, Nemazee had backed such Republican senators as Jesse Helms, Sam Brownback and Alfonse D’Amato. None could be described as Clinton fans. Nemazee’s business partner, Alan Quasha, who specializes in buying up troubled companies, has also played both sides of the partisan divide. Quasha gave to both Bush and Al Gore in 2000, and in the 2008 race gave to Republicans Mitt Romney and Rudy Giuliani as well as Democrats Barack Obama and Chris Dodd.
The strikingly trans-partisan and trans-national nature of this high-stakes influence game is best exemplified by the relationship between Quasha’s oil company, Harken Energy, and George W. Bush. Harken provided a home for Bush in the 1980’s when his own oil businesses failed, offering him handsome compensation and a solid financial base from which to enter politics. Bush was named to the Harken board and received a range of benefits from the company while devoting most of his time to his father’s presidential campaign and then his own outside career efforts.
Harken is a curious outfit. Its early funding sources were opaque, and its investors and board members had a dizzying array of connections into global power centers — and ties to the Saudi leadership and the former Philippine dictator Ferdinand Marcos, the Shah of Iran, as well as to the Swiss Bank, UBS, which has been charged by the US government with providing cover for  Americans who were evading taxes.
Around the time George W. Bush joined its board, Harken received an unusual and sizable cash infusion from the Harvard Management Company, which handles Harvard University’s endowment, the largest in the nation. Robert G. Stone, Jr., a figure with ties to US intelligence and to the Bushes, was head of the Harvard board of overseers that approved financial strategies. Former employees of Harvard Management have recently made highly-publicized charges that the company engaged in Enron-style investment practices. (Prior to going to work for Nemazee and Quasha, Terry McAuliffe had publicly criticized Bush for his financial dealings with Harken, disparaging that company’s own Enron-like accounting. Both Quasha and Nemazee, like Bush, have Harvard degrees, and both have sat on prestigious Harvard committees in recent years.)
Nemazee’s role as a foreign policy adviser to Hillary Clinton can be better understood through his own Iranian connections.  His father was a shipping magnate who was close with the Shah of Iran and served as the Shah’s commercial attaché in Washington; Nemazee was a founding member of the Iranian-American Political Action Committee, a lobbying group. Recent strains have been reported between President Obama and Secretary of State Hillary Clinton over policy toward Iran. Clinton has advocated a harder line toward the Islamic fundamentalists who took over when the Shah of Iran was overthrown in 1979, while Obama has stressed dialogue.
With Nemazee’s arrest for financial fraud certain to attract some sustained coverage, it remains to be seen whether it will be treated as yet another isolated case of financial wrongdoing, or lead to a deeper look at the influence bazaar that American politics has become.

 

 

 

IRS Commissioner Still has a Job After a $600M Mistake?

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IRS Inspector General

Just check out page 2 of the Inspector General’s report found here.

Over $572 Million in Excess Obamacare Tax Credits Paid Out

FreeBeacon: provided relief to individuals who received overpayments

The Internal Revenue Service paid out over $572 million in excess Obamacare tax credits and sent incorrect forms to over half a million individuals due to a computer programming error, according a new government report.

The report released by the Treasury Inspector General for Tax Administration on Tuesday inspected the interim results of the IRS’s verification of Obamacare’s Premium Tax Credits, which were created to assist low or medium-income individuals and families to purchase health insurance in the marketplace.

 IRS Commissioner

Those who are eligible to receive tax credits under Obamacare can choose to have their credits paid either directly to their health insurance provider as a partial payment towards their monthly premiums—known as the Advance Premium Tax Credit—or can receive the tax credits as one lump sum on their annual income tax return.

According to the IRS, $11 billion worth of tax credits were paid in advance to insurers for fiscal year 2014. By March 26, 2015, the IRS processed around 1.4 million tax returns that showed $4.4 billion in credits, bringing the total to more than $15 billion for 2014. Individuals claimed more than $240 million in additional premium credits and received $572 million in excess advance payments, according to the agency.

The inspection also brought to light a computer programming error that led to more than half a million individuals receiving incorrect health insurance forms.

Incorrect versions of the Health Insurance Marketplace Form, or Form 1095-A, were sent out to 800,000 individuals who participated in Obamacare’s federal exchange.

The forms were sent as a result of a computer programming error that ultimately displayed premium amounts for calendar year 2015 rather than 2014. Taxpayers use the premium amount to determine their allowable Paid Tax Credit.

After the mistake was discovered, the Center for Medicare and Medicaid Services said that it would send corrected 1095-A forms and urged the affected individuals to hold off filling out their forms. However, the Treasury estimated that 50,000 of these individuals had already filled out their tax returns as of February 2015.

Treasury announced in late February that people who had already completed their tax returns did not have to correct the errors by filing an amended tax return and stated that they would not seek to recoup the excess payments.

“On February 24, 2015, Treasury announced that taxpayers enrolled in the Federal Exchange who have already filed their tax return do not need to file an amended tax return to correct errors in their PTC claim resulting from an incorrect Form 1095-A,” the report said. “Treasury stated that the IRS would not pursue action to recoup excess PTC these taxpayers may have received as a result of the error.”

Treasury further said in March that it would extend this relief to every person who filed an incorrect tax return with the wrong premium amounts.

“On March 20, 2015, Treasury expanded relief from filing an amended tax return to all taxpayers who received and filed a tax return based on an incorrect Form 1095-A,” the report states.

The extent to which the incorrect forms contributed to the $572 million in excess payments is unknown and still being evaluated.

The inspection also found that the IRS could not verify nearly 40 percent of enrollees who comprised the more than $15 billion in dispersed tax credits due to lack of information.

“This is par for the course with Obamacare. Even after years of work and billions of tax dollars spent, this law again and again fails to prevent the prodigious waste of Americans’ money,” said Curtis Kalin, a spokesman for the watchdog group Citizens Against Government Waste

“There must be an effective system in place to track where subsidies have been sent and to whom. That is one of the most basic safeguards against waste and fraud. Taxpayers deserve the assurance that their money isn’t being hopelessly squandered, especially when there are commonsense ways to prevent it.”

Meet Criminal Ebrahim Shabudin Costs Taxpayers Millions

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Securities and Exchange Commission v. Thomas S. Wu, Ebrahim Shabudin, and Thomas T. Yu 

Exec at center of first TARP bank failure gets 8 years in prison

Fraud scheme cost taxpayers more than $300 million

More from Drew Harwell at the Washington Post: In 2009, less than a year after its $300 million taxpayer-funded rescue, the United Commercial Bank burned through the cash to become America’s first bailout-boosted bank to fail during the financial meltdown.

But this week, one of the imploded bank’s former senior executives was sentenced to eight years in prison for covering up its collapsing loans, becoming one of the few high-ranking bankers to face punishment for crisis-era crimes.

Ebrahim Shabudin, a former chief credit officer for the San Francisco-based bank, falsified records to hide major loan losses from auditors and investors in what prosecutors called a “delay-and-pray” scheme, even as the bank sought and pocketed cash from the Troubled Asset Relief Program, or TARP.

The bank, which once managed nearly $11 billion in assets and ran more than 50 branches across the United States, China and Taiwan, became the ninth largest to fail since 2007 even with help from the multitrillion-dollar bailout. Its dramatic failure cost the federal fund that insures Americans’ deposits more than $675 million.

The bailout’s chief watchdog called the years-long investigation into Shabudin “one of the most significant prosecutions” for crimes in the shadow of the financial meltdown. In March, after a six-week trial, a federal jury convicted Shabudin, 66, of seven counts of conspiracy and corporate fraud, making him one of the rare high-level bankers to head to court due to crisis-era crimes.

“Shabudin had every opportunity to do the right thing, but he was motivated instead to preserve the bank’s reputation at all costs, even if it meant committing a crime,” said Christy Goldsmith Romero, the special inspector general for TARP. “He was essentially gambling with taxpayers’ bailout dollars, and it was taxpayers who ultimately lost.”

But his sentencing may do little to quiet criticism that few big fraudsters have been punished in the meltdown’s long aftermath. The watchdog has secured convictions against 200 bank officers and other officials, but most were involved in smaller community banks, not Wall Street titans like those that used taxpayer money to pave over bad bets or dole out big bonuses.

Originally specializing in lending to Chinese Americans, the bank grew aggressively through commercial real-estate loans, becoming the first U.S. financial institution to buy a Chinese bank.

Its high-risk lending nearly doubled the bank’s loan portfolio between 2004 and 2007, to more than $8 billion, and made a rising star of chief executive Thomas Shiu-Kit (“Tommy”) Wu, who in 2006 was named auditing giant Ernst & Young’s financial-services Entrepreneur of the Year.

But as the bank’s river of risky loans began to fail, Shabudin and Wu held off on downgrading loans they knew were falling apart, ordered subordinates to understate the bank’s losses by at least $65 million, and blasted out false information in press releases, earning calls and annual reports.

Federal watchdogs including from the Federal Reserve, the Consumer Financial Protection Bureau and the FBI joined the case, making Shabudin and bank senior vice president Thomas Yu the first senior bank officials charged with fraud at a bailout-boosted financial institution.

Shabudin was the bank’s third officer to be criminally convicted, after Yu and chief financial officer Craig S. On pleaded guilty to conspiracy charges late last year. An outstanding warrant is in place for Wu, the chief executive, who has not yet been apprehended.

[SIGTARP proves that some bankers aren’t too big to jail]

Though credited with helping stabilize the wobbling economy, the bailout is remembered by many for its corporate largesse, including the hundreds of millions of dollars in bonuses paid to the heads of failing banks rescued by taxpayer cash.

Yet many of SIGTARP’s cases have focused on brazen acts of accounting fraud and smaller banks’ misspent millions. In one case, the executive of Mainstreet Bank, a community bank in Missouri, used nearly $400,000 of the bank’s $1 million bailout to buy a waterfront Florida condo.

The first person convicted of stealing bailout funds, Charles Antonucci, pleaded guilty in 2010 to bribes, fraud and embezzlement while serving as president of the Manhattan-based Park Avenue Bank. He was sentenced last month to 30 months in prison, down from a potential maximum of 135 years, because prosecutors said he cooperated with the bank probe.

William K. Black, a former bank regulator and University of Missouri associate professor specializing in white-collar crime, said Shabudin’s role in only the ninth-largest bank failure highlights the failure of regulators to combat larger frauds.

The Justice Department has still “prosecuted no banking leader for leading the three epidemics of fraud that hyper-inflated the bubble, drove the financial crisis, and caused the Great Recession,” referring to appraisal, loan and secondary-market fraud.

“Thousands of elite bankers reported pathetically inadequate” estimates of their bad debts similar to this bank’s, “and they face no investigations, much less prosecutions,” Black said. “The larger bank frauds were all bailed out this time around.”

It is a Day that Ends in ‘Y’ and Another Hillary Email Revelation

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While a big 9000 email dump is expected tonight at 9PM, August 31 by the State Department of more court ordered emails to be released, seems yet another 150 contained classified information.

EXCLUSIVE: Hillary Shared An Email Network With The Clinton Foundation

Hillary Clinton’s private email server was housed at the same physical location and on the same network as an email server used and operated by the Clinton Foundation, Breitbart News has exclusively learned.

Breitbart: Records reveal that Hillary Clinton’s private clintonemail.com server shared an IP address with her husband Bill Clinton’s email server, presidentclinton.com, and both servers were housed in New York City, not in the basement of the Clintons’ Chappaqua, New York home.

Web archives show that the Presidentclinton.com Web address was being operated by the Clinton Foundation as of 2009, when Hillary Clinton registered her own clintonemail.com server.

Numerous Clinton Foundation employees used the presidentclinton.com server for their own email addresses, which means that they were using email accounts that, if hacked, would have given any hacker complete access to Hillary Clinton’s State Department emails, as well.

The bombshell revelation raises new concerns about the possible illegality of Hillary Clinton’s private email use. The former Secretary of State is under federal investigation for potentially violating the Espionage Act by allowing people without a security clearance to access classified information. The fact that Hillary was sharing an email network with a private foundation means that people without a security clearance almost certainly had physical access to her server while she was working at the State Department.

Here’s what we know:

The Servers Have The SAME IP Address

Hillary’s clintonemail.com server and the Foundation-run presidentclinton.com email server have exactly the same IP address, and the same SSL certificate (which an organization purchases for an email server to verify its trustworthiness).

mail.clintonemail.com and mail.presidentclinton.com both have an IP address of 64.94.172.146, according to an SSL Certificate Checker.

The two servers both have that same IP address, 64.94.172.146, according to DNS records. (Here are records for Hillary’s server, and here are records for Bill’s server).

Both servers have the same IP address, according to another independent Internet records database, robtex.net.

The fact that both of these email servers have the same IP address means that they were operating on the same network, and sharing physical space. A computer expert tells Breitbart News that the servers were probably operating on the same machine. It is also possible that they were operating on different machines on the same network, which still means that the machines would have to be close enough to exist in the same physical location.

President Clinton’s server was created in 2002, while Hillary’s was created in 2009, which means that Hillary’s server was simply added to Bill’s Foundation-run server network.

They Had The SAME IP Address When She Was Secretary of State

Hillary’s server and Bill’s Foundation-run server also shared a different IP address during her tenure as Secretary of State.

From September 8, 2009 until June 24, 2011, Bill Clinton’s Foundation-run mail.presidentclinton.com server had an IP address of 24.187.234.187, according to DNS records.

Hillary’s mail.clintonemail.com server had the same exact IP address, 24.187.234.187, from the dates May 21, 2010 until October 21, 2010, according to DNS records.

Their Shared IP Address Can Be Traced to Midtown Manhattan

A geographical search for the IP address that both servers shared at registration traces to Midtown Manhattan, according to three different databases: infosniper.net, which locates a Midtown latitude/longitude point, ip-tracker.org, which also gives a Midtown latitude/longitude point, and whatsmyip.org.

Clinton Foundation headquarters are currently located at 1271 6th Avenue in Midtown. Bill Clinton’s office is at 55 West 125th Street

The Denver-based firm Platte River Networks told Breitbart News that it physically moved Hillary Clinton’s private email server out of the basement of her Chappaqua home in 2013. But the Clintons could have moved the server from Manhattan to Chappaqua before Platte River got there.

Clinton Founation Employees Had presidentclinton.com email addresses

The employees who have used presidentclinton.com email addresses included former Bill Clinton right-hand man Doug Band, as well as Justin Cooper, a Hillary aide who has worked with the Foundation, Terry Krinvic, Laura Graham, and John Zimmerebner.

Was Chelsea Clinton On The Server?

The email server for mail.chelseaoffice.com, which is no longer active, resolves to clintonemail.com, according to DNS records. Wikileaks confirms that the chelseaoffice.com server was used by Chelsea Clinton employees.

Hillary Even Admitted That She Used Her Husband’s “System”

“Well the system we used was set up for President Clintons office and it had numerous safeguards it was on property guarded by the Secret Service and there were no security breaches, so I think that the use of that server which started with my husband proved to be effective and secure,” Hillary Clinton said in a March 2015 press conference.

Clinton has not returned to that talking point since.

The Clinton Foundation and Hillary Clinton’s campaign did not return requests for comment by press time.

Human smuggling network dismantled

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One must keep in mind that this is yet a result of the Obama White House backdoor Dreamer program.

A human smuggling network that operated in Central America, Mexico and the United States was dismantled in a multinational operation.

Eleven members of the network, that used sea routes to transport undocumented immigrants trying to reach the United States, were arrested in three Mexican states: Oaxaca, Puebla and Guerrero.

The Attorney General’s Office said that the migrants arrived to the port of Salina Cruz, Oaxaca and were taken from there to the U.S. border by land. It added that cash, credit cards, weapons, ammunition, mobiles and five cell phones were seized as part of the operation, for which Mexico shared information and coordinated with authorities in the United States, El Salvador and Guatemala.

***

FoxLatino: “As a result of actions against a transnational criminal organization dedicated to trafficking in people, including unaccompanied minor migrants, that operates in Central America with the United States of America as its destination via Mexico, 11 members of said group have been detained,” the AG’s office said in a statement.

The suspects were arrested in Oaxaca and Guerrero states, both in southern Mexico, and in the central state of Puebla, the AG’s office said.

The arrests were made as part of an investigation that started several months ago and is being coordinated with officials in El Salvador and Guatemala, the SEIDO organized crime unit said.

The people trafficking network used maritime routes on Mexico’s Pacific coast to move the migrants, the Special Unit for Investigations of Trafficking in Minors, People and Organs, or UEITMPO, said.

Migrants were taken to Salina Cruz, Oaxaca, and later moved by land via several other states to northern Mexico, the UEITMPO said.

Investigators searched 10 properties, including a bar, in Oaxaca, as well as one property in Puebla and two in Guerrero.

Cash, bank cards and documents, firearms, ammunition, cell phones and five vehicles were seized, the AG’s office said.

The suspects were turned over to federal prosecutors, who plan to charge them with people trafficking and organized crime.

How bad is this human trafficking?

InSight: Authorities in Mexico have uncovered a web of human trafficking alliances stretching across 17 states and involving groups from the biggest cartels down to family-run crime clans, in an illustration of the scale of the trade and the pressure on major criminal organizations to move into new businesses.

Based on testimony from victims, the Attorney General’s organized crime unit (SEIDO) linked crime families in the small central state of Tlaxcala to drug cartels including the Zetas, the Familia Michoacana, the Knights Templar and the Gulf Cartel, reported Excelsior.

One of the routes used by the networks is to bring minors from the southeast states of Oaxaca, Veracruz, Hidalgo and Chiapas and transport them by truck to safe houses in Tlaxcala, from where victims are either moved to Tijuana near the US border or to Mexico City.

The tactics used to obtain victims have reportedly developed over time, with criminal groups now often using social networking sites rather than kidnapping to recruit victims, found SEIDO.

According to Excelsior, 70,000 people become victims of human trafficking every year in Mexico. The crime earns criminal groups an estimated $42 million annually — which amounts to about $600 per victim — and 47 criminal organizations are involved.

InSight Crime Analysis

In 2010, the Coalition Against Trafficking in Women and Girls in Latin America and the Caribbean (CATW-LAC) reported that an estimated 1.2 million people in Mexico were victims of human trafficking. The National Refuge Network has reported that 800,000 adults and 20,000 children are trafficked for sexual exploitation in the country each year.

As highlighted by Excelsior, the human trafficking business model is sophisticated, with the work divided between a range of criminal groups responsible for different aspects of the trade, such as recruitment or transport.

Human trafficking in the country used to be dominated by small, independent networks, but drug cartels have taken an increasingly important role in the crime as they seek to diversify their revenue streams in the face of pressure on the drug business. In 2013, the regional head of CATW-LAC stated that 70 percent of sex trafficking cases reported to the organization involved drug gangs.

The importance of Tlaxcala in the human trafficking networks may be due to the state’s central location and proximity to Mexico City. Between January 2010 and July 2013, Tlaxcala saw the greatest number of convictions for human trafficking and tied with Baja California for the largest number of cases opened for this crime. The state was also the site of a major sex trafficking network dismantled in 2011.