Category Archives: Treasury

Guzman, Miami Laundering Pesos: Operation Neymar

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And so it continues the underworld of the cartels with money laundering through Miami.

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22 face charges in Miami drug money-laundering ring involving ‘El Chapo’ cartel

Police say the sophisticated schemes moved millions of illegal profits to Colombia

The large-scale probe into the “black market peso exchange” is a first for state prosecutors

The arrests come amid global scrutiny on financial transactions, including in South Florida

MiamiHerald: A sophisticated ring of money launderers — with an array of pop cultural nicknames like “Tony Montana,” “Pitbull” and “Neymar” — has been busted on charges of sending untold millions in illegal cocaine profits to Colombia using nearly a dozen businesses in Miami-Dade.

Miami-Dade authorities announced arrest warrants for 22 people believed to have worked in a scheme that included the suspected chief money launderer for the Mexican drug cartel headed by notorious kingpin Joaquin “El Chapo” Guzman.

The wide-reaching probe into the so-called “black market peso exchange” — which involved monitoring deals in 17 countries — is the first such case to be filed in Miami-Dade state court, and offers the most recent window into the drug-fueled underground lending system that law enforcement authorities believe props up hundreds of South Florida businesses.

Miami-Dade State Attorney Katherine Fernandez Rundle talks about the disruption of an international money-laundering ring during a press conference, Thursday on Operation Neymar.

Miami-Dade State Attorney Katherine Fernandez Rundle talks about the disruption of an international money-laundering ring during a press conference, Thursday on Operation Neymar. DANIEL BOCK FOR THE MIAMI HERALD
A chart from the press conference held by Miami-Dade State Attorney Katherine Fernandez Rundle showing how an international money-laundering ring works.

A chart from the press conference held by Miami-Dade State Attorney Katherine Fernandez Rundle showing how an international money-laundering ring works. DANIEL BOCK FOR THE MIAMI HERALD
Agents seized $134,980 in cash in Chicago in August 2015 as part of a wide-ranging money-laundering investigation that lead to criminal charges against 18 people being filed in Miami-Dade County.

Agents seized $134,980 in cash in Chicago in August 2015 as part of a wide-ranging money-laundering investigation that lead to criminal charges against 18 people being filed in Miami-Dade County. Miami-Dade State Attorney’s Office

“They use Miami’s strong international economy as the actual funnel of all of their international money-laundering operations,” Miami-Dade State Attorney Katherine Fernandez Rundle told reporters at a press conference on Thursday. ‘We are surely the global hub for money laundering.”

Three people were arrested in Miami this week, while another major player has been jailed in Cali, Colombia, to await extradition to the United States. One more was arrested in Boston. In all, 18 people — most remain fugitives — will be tried in Miami-Dade, with the rest being tried in other U.S. cities.

The two-year probe — dubbed Operation Neymar because one suspect used the name of the Brazilian soccer star and other players as his aliases — was conducted by agents from the U.S. Homeland Security Investigations, Miami-Dade police and state prosecutors. As part of the investigation, undercover agents laundered a “small fraction” of drug proceeds to build evidence against the group, prosecutors said.

The operation stands in stark contrast to the now disgraced and disbanded money-laundering sting unit run by Bal Harbour Police, which by 2012 had laundered millions for cartels but never made any arrests.

The arrests also come as the “Panama Papers” and other investigations have put intense scrutiny on financial shenanigans in South Florida real estate — leading the County Commission to pass a resolution this week asking the federal government to stop singling out Miami as a hub for money laundering.

Prosecutors say Operation Neymar — which netted more than $1 million in seized drug cash — proves that major drug money laundering is still thriving in Miami.

According to them, one of the major players in the group was Mexican Sinaloa Cartel member Juan Manuel Alvarez Inzunza, 34, who was arrested by Mexican authorities last month. He is suspected of laundering billions of dollars of drug proceeds.

He is now awaiting extradition to the United States, where he will first stand trial on federal charges in San Diego. For now, he has not been charged in the Miami-Dade case.

The two big players being charged are suspected money-laundering brokers for the cartel in Cali, Colombia: Ivan Alfredo Castro Santana and Ivan Andres Lizarazo Mendoza, who was nearly kidnapped and killed by the Colombian cartel after police in Miami seized $200,000 in drug money.

They are being charged with racketeering and money laundering. Lizarazo’s sister in Miami, Sidia Milady Lizarazo Mendoza, is also accused of money laundering and is now being held on a $1 million bond in a Miami-Dade jail.

Prosecutors say the group used throwaway Blackberry phones, employing ever-changing pass codes that, in English, seem nonsensical. One example: “Con mollo departe del panzon” – or “with the dark-skinned one, on behalf of the potbellied.”

To unravel the money-laundering operation — which was washing about $1 million a month — investigators used wiretaps, surveillance, reviews of thousands of financial transactions and cooperation from informants, according to an arrest warrant by HSI agent Charles Thomas, Miami-Dade Detective Jonathan Santana and prosecutor Jared Nixon.

Money laundering, of course, is nothing new in South Florida. And while drugs don’t flow into the United States through Florida in the volume they did in the 1980s, Miami remains the main hub for laundering the illicit profits.

The reason: So many businesses here, particularly in Doral, do business with Colombia. In April 2015, the U.S. Treasury Department issued a warning to 700 Miami businesses believed to be involved in laundering drug money.

According to law enforcement, the black-market peso exchange requires a number of steps to launder drug proceeds.

The Mexican cartels use credit to buy loads of cocaine from their counterparts in Colombia. The drugs are smuggled into the United States, then routed to cities across the country where they are sold to dealers who peddle them to users.

The resulting millions in drug dollars, temporarily stored in “stash houses,” must then be converted to pesos for the Colombian cartel.

So the cartel employs a money broker know as the primera mano, or first hand, who arranges to buy U.S. dollars in exchange for a cut of the proceeds. He, in turn, puts out a “bid” — all arranged through covert Blackberry text messages — for sub-brokers willing to buy the dollars.

Sub-brokers then turn to Colombian businesses that need U.S. dollars to buy goods or services from the United States. For those businesses — say a Bogotá electronics store needing to buy U.S. cellphones — it’s way cheaper to buy dollars from the black market than through official Colombian channels that charge high exchange rates, plus hefty taxes and fees.

A Bogotá business might place an order with a Miami distributor for a load of phones, makeup or textiles, telling them their payment will arrive via a wire transfer from an unnamed “third party.”

“If as a business you are receiving funds or interacting with third parties that are alien to your business transaction, you’re in the middle of a black-market scheme,” said John Tobon, South Florida’s HSI Deputy Special Agent in Charge.

Investigators believe most Miami companies involved in the black-market peso exchange have a general idea of what’s going on — but ask no questions. In Operation Neymar, prosecutors identified, but did not charge, 11 local businesses, including M2 Wireless of Doral, Dis Cells Corporation of Miami Beach and Hair and Accessories of Opa-locka.

“Pick-up crews” are hired to get the cash from couriers, always in mundane public spots, the money stuffed in shopping bags, backpacks or shoe boxes. In the newly charged case, some of the pick-up spots included a Starbucks in Doral, a  parking lot at the Dolphin Mall and a Dunkin’ Donuts in New Jersey, prosecutors said.

The next step: The pick-up crew begins depositing the cash into a “funnel” bank account, all in small increments to avoid attention from law enforcement. Those accounts then wire the money to the Miami business, which in turn sends its goods such as cellphones to the Colombian business.

Back in Colombia, that legitimate business pays back its pesos to the brokers, who can finally pass the money to the cartel.

 

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

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

Hezbollah Israel threats

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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.

articles/05Art/160407-art-06.jpgFine 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.

 

 

 

Candidates Proposals Makes the Tax Man Happy

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The big question remains in the end of these summaries, Kasich’s is not included, yet will the tax code really ever receive an overhaul? Not likely given the $20 trillion in debt which does not include any part of the unfunded mandates.
Stipulation, these summaries are not GAO graded or confirmed if candidates have changed any parts.

AEI: Donald Trump’s tax plan would cut federal revenue by $9.5 trillion over a decade and boost the after-tax incomes of the wealthiest households by an average of more than $1.3 million a year, according to an analysis released Tuesday. Mr. Trump’s plan, which would cut tax rates and push millions of households off the income tax rolls, would reduce federal revenue by 22%, requiring either significant new borrowing or unprecedented spending cuts. … “The revenue losses from this plan are really enormous,” said Leonard Burman, director of the nonpartisan Urban-Brookings Tax Policy Center, which released the study. A bipartisan panel reviewed the report before its release. Mr. Trump’s website says his plan would be revenue-neutral. The center’s analysis shows otherwise.

Actually the red ink is worse than the WSJ piece would suggest. From the study itself:

The revenue loss during the second decade (2027–36) would be more than half again the first decade’s loss (in nominal terms)—a projected $15.0 trillion. The revenue losses understate the total effect on the national debt because they do not include the additional interest that would accrue as a result. Including interest costs, the proposal would add $11.2 trillion to the national debt by 2026 and $34.1 trillion by 2036. Assuming the tax cuts are not offset by spending cuts, the national debt would rise by an estimated 39 percent of GDP in 2026 and by nearly 80 percent of GDP by 2036.

And don’t expect economic growth to bail out the plan. Recall that the Tax Foundation analysis of the Trump plan found it losing $12 trillion on a static basis, $10 trillion when accounting for economic feedback — still a huuuge number.
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The Hillary Bernie tax base showdown

Soak-the-rich proposals ignore history and wouldn’t raise nearly enough money to fund big spending plans.

ManhattanInstitute: Here is a question to ask Hillary Clinton and Bernie Sanders: What is the best tax rate to impose on high-income earners to ensure there is enough government revenue to pay for your trillion-dollar promises to voters?

Perhaps they think it is 83%, a rate that economists Thomas Piketty and Emmanuel Saezhypothesized in 2014 in a widely circulated paper. Or maybe it is 90%, which Sen. Sanders told CNBC last May was not out of the question. “Our job is not to think small,” Mr. Sanders elaborated in the Huffington Post a month later. “It is to think big.”

Progressives have often reminded us that the U.S. had such rates in the past. From 1936 to 1980, the highest federal income-tax rate was never below 70%, and the top rate exceeded 90% from 1951 to 1963. Under Ronald Reagan, the top federal rate declined to 28% by 1988 and has never reached 40% since.

The discussion of these rates can easily create the impression that the federal government collected far more money from “the rich” before the Reagan administration. And it can also leave another impression: There would be no downside to raising rates to 1950s levels, given that decade’s prosperity.

Neither impression would be correct. The effective tax rates actually paid by the highest income earners during the 1950s and early ’60s were far lower than the highest marginal rates. Few taxpayers reached the top brackets, the code was rife with loopholes, and capital gains were taxed at much lower rates.

In the 1960s, for example, the average rate paid by the top 0.1% of tax filers—the top 10th of the top 1%—ranged from 26.5% to 29.5%, according to a 2007 study by Messrs. Piketty and Saez. Even during the 20 years after the Reagan tax cuts, the top 10th of the top 1% paid an average rate of 23.7% to 33%—essentially the same as in the 1960s. In the decade following 2001, the Congressional Budget Office estimates that the average rate for this elite group never exceeded 32%.

Nostalgia aside for a world that never existed, few people paid the top tax rates of the 1950s and early 1960s…

Read the entire piece here at The Wall Street Journal

Then there is the Cruz plan.

WSJ: The Cruz plan would replace payroll and corporate income taxes with a 10% individual income tax and a 16% business tax that would become the chief U.S. revenue source. Like his GOP rivals, Mr. Cruz offers sizable tax cuts and a shift toward taxing consumption instead of income. But he goes further. By eliminating long-standing taxes, Mr. Cruz’s plan could change consumer prices and relationships between workers and employers now shaped by those levies.

Forecasting how this shift would ripple through the economy depends on assumptions about who pays those taxes now and who would bear the burden of the new tax.

“It’s one of the most complicated questions in economics,” said Martin Sullivan, chief economist at Tax Analysts, publisher of Tax Notes. “Every time you start talking about these incidences, it’s like a whack-a-mole thing. You talk about one thing and it comes out the other side.”

Mr. Cruz’s biggest change is, in some ways, a simple reshuffling of existing taxes.

The U.S. now taxes corporate profits at 35%. Companies deduct wages immediately but spread capital expenses over time. The cost is absorbed by shareholders and workers.

The 12.4% Social Security payroll tax is split evenly between workers and employers up to $118,500 in wages. A separate Medicare tax has no cap. Economists consider employees to bear the whole payroll-tax burden.

What Mr. Cruz calls a business flat tax—and economists call a subtraction-method value-added tax—simply combines corporate and payroll taxes. Businesses would deduct capital purchases immediately and pay a 16% rate without deducting wages. Removing the current cap effectively enlarges the payroll tax for high-income workers. More here.

More Hillary Collusion Surfaces

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This is the time we need the NSA to produce some meta data on cell phones and honestly the actual conversations.

Panama Papers Scandal Hits the Clinton Campaign

Hillary Clinton’s campaign chairman, John Podesta, has ties to Russia’s Sberbank, which has been implicated in the “Panama Papers” tax-avoidance scandal.

A report parsing through what is currently known to be included in the Mossack Fonseca data leak about Russian corporations found that Podesta’s eponymous Podesta Group lobbying firm took on Sberbank as a client only a month ago. John Podesta’s brother Anthony, who bundles campaign donations for Clinton, is listed as the lobbyist for the Sberbank account.

According to the Washington Free Beacon report, the Podesta Group’s lobbying registration form lists three other entities affiliated with Sberbank: “Cayman Islands-based Troika Dialog Group Limited, Cyprus-based SBGB Cyprus Limited, and Luxembourg-based SB International.”

Both Sberbank and the Troika Dialog Group are linked with companies used by members of Russian president Vladimir Putin’s inner circle to shift government funds into personal offshore accounts, according to allegations leveled by the International Consortium of Investigative Journalists (ICIJ), the group managing the Panama Papers story – for example, leaked documents from Panamanian law firm Mossack Fonseca that showed Troika Dialog secretly signing away interest in a Russian truck manufacturer to an offshore company called Avto Holdings, owned by close Putin friend Sergei Roldugin.

This, and many similar transactions, are characterized by the Panama Papers journalists as examples of how “offshore companies affiliated with Putin’s friend had privileged rights to control large stakes in strategic Russian enterprises, to receive dividends, and to buy these stakes for laughable sums.” A must read of the rest here from Breitbart.

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Hold on there is more……

Clinton Foundation Donor Ensnared in Kickbacks Probe

Abraaj Group co-sponsored Clinton Global Initiative annual meeting, secured U.S. government business

FreeBeacon: A major Clinton Foundation donor company that has been granted millions in U.S. federal loans has been linked to a corruption probe in Pakistan, according to reports.

The Abraaj Group, a Middle Eastern investment fund that contributed between $500,000 and $1 million to the Clinton Foundation, has not been charged in the case, but its name has surfaced in Pakistani media reports. Authorities in Sindh province have accused a prominent government official of providing illegal favors to K-Electric, a power company owned and managed by the Abraaj Group since 2009.

Former Pakistani oil minister Dr. Asim Hussain was arrested last year amid allegations that he helped harbor terrorists in a string of hospitals he owned and doled out illegal contracts to companies, including K-Electric. Both Hussain and K-Electric have denied the allegations.

The investigation has not impacted the U.S. government’s ongoing partnership with the Abraaj Group, which dates back to at least 2012. That year, the Overseas Private Investment Corporation—a federal agency that dispenses corporate loans under the guidance of the U.S. State Department—selected the Abraaj Group to manage its $150 million Middle East investment fund.

Two weeks later, the Abraaj Group co-sponsored the Clinton Global Initiative’s annual meeting.

Last October, the Overseas Private Investment Corporation again pledged up to $250 million to help fund the Abraaj Group’s K-Electric operations. The announcement came less than a month after the Sindh Rangers, a Pakistani law enforcement agency, reportedly issued a 12-page report accusing Hussain of passing illegal favors to K-Electric.

According to the Sindh Rangers, Hussain was “involved in various acts of corruption, corrupt practices and misuse of authority as public office holder.” The paramilitary group claimed he also embezzled money that was “subsequently used in terror financing and funding target killers.”

The Rangers’ report claimed that “Dr Asim [Hussain] gave favours and illegal gas connections to KESC [K-Electric], which was owned by Abraaj Group with links to [former Pakistani president] Asif Zardari and [Zardari’s sister] Faryal Talpur to the tune of Rs100 billion,” according to a summary by the International News.

A spokesperson for the Overseas Private Investment Corporation told the Washington Free Beacon that its board approved the project with the Abraaj Group and K-Electric before news of the investigation emerged.

“We are aware of the situation and are following up with the borrower,” OPIC press secretary Sandra Niedzwiecki said.

A spokesperson for the Abraaj Group referred the Free Beacon to an Oct. 2, 2015 statement on the K-Electric website, which strongly denied the charges.

“K-Electric has categorically refuted and denied the false and defamatory allegations that have been referenced in a few publications regarding undue favors taken by the company and/or the provision of illegal gas connections and supply,” the statement said. “K-Electric is a publicly listed company and operates in strict compliance with national laws and regulations and adheres to the highest standards of ethics and corporate governance.”

A spokesperson for the Abraaj Group said K-Electric “has not been contacted by any government or judicial agencies on this matter.”

Dr. Asim Hussain has pleaded not guilty to separate charges of aiding terrorists and corruption.

Hussain appeared in Karachi’s Accountability Court on Thursday, where he was expected to be indicted, according to reports. However, jail authorities brought him to the courthouse over an hour late, and the hearing was rescheduled for a later date.

Last month, Pakistan’s anti-corruption agency, the National Accountability Bureau, filed a corruption reference against Hussain. “In this case, the accused persons were alleged to have illegally fraudulently and with the connivance of officials of OGDCL [Oil and Gas Development Company, Limited] and SSGCL [Sui Southern Gas Company, Limited] awarded gas contracts,” the bureau’s executive board wrote in a March 2 statement.

K-Electric is not the only part of the Abraaj Group entangled in a corruption case. The CEO of PetroTiger, a Colombian petroleum company in the Abraaj Group’s portfolio, pleaded guilty to bribing a foreign official last June. He was sentenced to probation. PetroTiger reportedly cooperated in the case and the company was not charged.

 

 

 

Facebook’s Selective Censorship? Closed Groups….

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Primer: Facebook owns WhatsApp.

Even more curious the New York Times did the study and provided the results to Facebook…Zuckerberg, what say you?

Facebook Groups Act as Weapons Bazaars for Militias

NYT: A terrorist hoping to buy an antiaircraft weapon in recent years needed to look no further than Facebook, which has been hosting sprawling online arms bazaars, offering weapons ranging from handguns and grenades to heavy machine guns and guided missiles.

The Facebook posts suggest evidence of large-scale efforts to sell military weapons coveted by terrorists and militants. The weapons include many distributed by the United States to security forces and their proxies in the Middle East. These online bazaars, which violate Facebook’s recent ban on the private sales of weapons, have been appearing in regions where the Islamic State has its strongest presence.

This week, after The New York Times provided Facebook with seven examples of suspicious groups, the company shut down six of them.

The findings were based on a study by the private consultancy Armament Research Services about arms trafficking on social media in Libya, along with reporting by The Times on similar trafficking in Syria, Iraq and Yemen.

A seller based in Tripoli, Libya, offered components of a man-portable antiaircraft defense system, or Manpads, in a closed Facebook group. Armament Research Services

1. The Weapons Have Included Heavy Machine Guns and Heat-Seeking Missiles

Many sales are arranged after Facebook users post photographs in closed and secret groups; the posts act roughly like digital classified ads on weapons-specific boards. Among the weapons displayed have been heavy machine guns on mounts that are designed for antiaircraft roles and that can be bolted to pickup trucks, and more sophisticated and menacing systems, including guided anti-tank missiles and an early generation of shoulder-fired heat-seeking antiaircraft missiles.

Last year ARES said it had documented an offer on Facebook to sell an SA-7 gripstock (pictured above), the reusable centerpiece of a man-portable antiaircraft defense system, or Manpads, a weapon of the Stinger class. Many of these left Libyan state custody in 2011, as depots were raided by rebels and looters. ARES said it documented Libyan sellers claiming to have two complete SA-7s for sale, two additional missiles and three gripstocks. An old system, SA-7s are a greater threat to helicopters and commercial aircraft than to modern military jets.

Machine guns, rifles and a shotgun advertised on Facebook groups in Libya.

2. Others Are the Standard Arms of Militant and Terrorist Groups

Machine guns and missiles form a small fraction of the apparent arms trafficking on Facebook and other social media apps, according to Nic R. Jenzen-Jones, the director of ARES and an author of the report. Examinations by The Times of Facebook groups in Libya dedicated to arms sales showed that sellers sought customers for a much larger assortment of handguns and infantry weapons. The rifles have predominantly been Kalashnikov assault rifles, which are used by many militants in the region, and many FN FAL rifles, which are common in Libya.

All of these solicitations violate Facebook’s policies, which since January has forbidden the facilitation of private sales of firearms and other weapons, according to Monika Bickert, a former federal prosecutor who is responsible for developing and enforcing the company’s content standards.

Images from Facebook groups selling weapons in Iraq.

3. Weapons Sales Greased by Social Media Sites Have Become a Feature of Many Conflicts

The use of social media for arms sales is relatively new to Libya. Until a Western-backed uprising against Col. Muammar el-Qaddafi in 2011, which ended in his death at the hands of an armed mob, the country had a tightly restricted arms market and limited Internet access. But social media-based weapons markets in Libya are not unique. Similar markets exist in other countries plagued in recent years by conflict, militant groups and terrorism, including arms-sales Facebook groups in Iraq, Syria and Yemen.

On Monday, The Times shared links for seven such groups with Facebook to check whether they violated the rules. By Tuesday, Facebook had taken down six of the groups. Ms. Bickert said that one Facebook group — which displayed photographs of weapons but only discussed them and expressly forbade sales — had survived the company’s scrutiny.

Online weapons markets in Iraq and Libya.

4. Facebook’s Rules on Arms Sales Are Related to Changes in How Facebook Is Used.

Ms. Bickert described the company’s policies as evolutionary, reflecting shifts in its social media ecosystem.

“When Facebook began, there was no way to really engage in commerce on Facebook,” she said. But in the past year, she noted, the company has allowed users to process payments through its Messenger service, and has added other features to aid sales. “Since we were offering features like that, we thought we wanted to make clear that this is not a site that wants to facilitate the private sales of firearms.”

A Facebook user in Syria shared an image of Islamic State fighters.

5. Facebook Relies on Users to Report the Arms Trafficking It Bans

Ms. Bickert said the most important part of Facebook’s effort “to keep people safe” was to make it easy for users to notify the company of suspected violations, which can be done with a click on the “Report” feature on every Facebook post.

In this way so-called Community Operations teams — Facebook employees who review the reports in dozens of languages — can examine and remove offending content. How effective the policy is, in practice, is unclear. Several groups from which the photographs for this article were downloaded operated on Facebook for two years or more, accumulating thousands of members before Facebook announced its ban on arms sales.

This trafficking occurred in countries where the Islamic State is at its most active and where armed militias or other designated terrorist groups, including Al Qaeda, have a persistent presence. In all four countries, government forces do not control large areas of territory and civil society is under intense pressure. Christine Chen, a Facebook spokeswoman, said the company relied on the nearly 1.6 billion people who visit the site every month to flag offenders. “We urge everyone who sees violations to report them to us,” she said.

Pistols have been widely sold and sought on Facebook in Libya.

6. In Libya, Widespread Pistol Sales on Facebook

ARES has documented many types of buyers and sellers. These include private citizens seeking handguns as well as representatives of armed groups buying weapons that require crews to be operated effectively, or appearing to offload weapons that the militias no longer wanted. Different markets have different characteristics. In Libya, fear of crime seemed to drive many people to buy pistols, Mr. Jenzen-Jones said. “Handguns are disproportionately represented,” he said. “They are widely sought after — primarily for self-defense and particularly to protect against carjackings — with many prospective buyers placing ‘wanted’ posts.” They were also expensive, ranging from about $2,200 to more than $7,000 — a sign that demand outstrips supply.

Military weapons originating in the United States have been sold through Facebook groups in Iraq.

7. Weapons Provided to Allies in Iraq Have Filled Facebook Sales Pages

In Iraq, the Facebook arms bazaars can resemble inside looks at the failures of American train-and-equip programs, with sellers displaying a seemingly bottomless assortment of weapons provided to Iraq’s government forces by the Pentagon during the long American occupation. Those include M4 carbines, M16 rifles, M249 squad automatic weapons, MP5 submachine guns and Glock semiautomatic pistols. Many of the weapons shown still bear inventory stickers and aftermarket add-ons favored by American forces and troops.

Such weapons have long been available on black markets in Iraq, with or without advertising on social media. But Facebook and other social media companies seem to provide new opportunities for sellers and buyers to find one other easily; for sellers to display items to more customers; and for customers to peruse and haggle over a larger assortment of weapons than what is available in smaller, physical markets.

A TOW launcher, a wire-guided anti-tank missile system, was advertised on a Facebook group in Syria with this message: “There is a TOW launcher, brand new, whoever wants it should contact us via private messages or WhatsApp.”

8. In Syria, Weapons Identical to Those Distributed to Rebels by the United States Are Offered for Sale

Similarly, weapons identical to those provided by the United States to Syrian rebels have also been traded on Facebook and other social media or messaging apps. In one recent example, a seller in northern Syria — who identified himself as a student, photographer and sniper — offered a pristine-looking Kalashnikov assault rifle that he said came from the Hazm Movement, which received weapons from the United States before the movement was defeated by the Nusra Front, a Qaeda affiliate. He noted on Facebook that the rifle was new and had “never fired a shot,” and hinted of either a bonus gift or a discount.