11 27 16 Post

Forty-seven-year-old Peter Sangster of Cherry Gardens, Kingston 8, Jamaica, has been a local politician and businessman in Jamaica. After Jamaican authorities subjected telephone carrier Jamus Communications Ltd., (“Jamus”), to a levy, Mr. Sangster allegedly offered to help Jamus by procuring a “waiver” of payment. Mr. Sangster supposedly supplied Jamus with this waiver. The waiver was dated 1/9/2013 & it seemed to be signed by the then Prime Minister Portia Simpson Miller. The Prime Minister’s signature on the waiver is now thought to be a forgery. It also seems that Jamaican law does not provide for a waiver of payment regarding the levy.

In exchange for allegedly supplying Jamus with the waiver, Mr. Sangster reportedly had Jamus transfer over $150,000 U.S. dollars to 2 bank accounts in the United States. One of the bank accounts is believed to have been titled “Sangster Group LLC,” maintained at Bank of America, 515 Ocean Avenue, Brooklyn, New York. The other bank account was also at Bank of America and was thought to have been titled “Peter and Tania Sangster.” Based on these alleged facts, the Jamaican Major Organized Crime and Anti-Corruption Task Force, (“MOCA”), has investigated Mr. Sangster for an alleged forgery and an alleged larceny.

MOCA appears to now be searching for assets that could be related to Mr. Sangster. MOCA has sought corporate & banking records for “Sangster Group LLC.” MOCA has similarly sought records for the “Peter and Tania Sangster” Bank of America account. Last month a court in Delaware issued an order on behalf of MOCA, permitting a prosecutor to collect these records. The order authorizes the prosecutor to gather the records listed on pp. 7-11 at the following letter rogatory/legal assistance request from Jamaica:¹

Letter Rogatory P Sangster
To Read The Letter Rogatory, Click On The Image Above

¹The letter rogatory/legal assistance request has been partly sanitized for privacy reasons.

First Image: Light And Dark Studio/Shutterstock.com

Copyright 2016 Fred L. Abrams

10 26 16 Post

If you are litigating against an adversary who is hiding assets from you, subpoenaing your adversary’s credit card statements might help you track the hidden assets. As my post “Secreting Assets Without A Border Trace” suggests, expenses listed at a credit card statement may lead you to your adversary’s assets. “Secreting Assets Without A Border Trace” is about tracking a Ponzi schemer’s illicit assets. The Ponzi schemer in that post could have: converted cash into diamonds; parked the diamonds in a Swiss security box (i.e. safe deposit box); and opened a secret bank account in Luxembourg.

The subpoena available below has language you can include at a subpoena for credit card records. The subpoena was issued to American Express by the Chapter 7 trustee in Michael Mastro’s bankruptcy case.  Along with credit card statements, the subpoena requested “[c]opies of all checks, money orders, electronic transfer records, and other documents showing the source and manner of each [credit card] payment…” Some of my other posts discussing subpoenas are “An Asset Search of A Lawyer Employed To Conceal Cash” & “Eliciting Evidence From Foreign Bank Witnesses.

American Express Subpoena

Image of torn paper & word subpoena: arfa adam/Shutterstock.com

Copyright 2016 Fred L. Abrams

The instant post mentions hiding assets through: a lawyer; offshore bank accounts; etc. It is the 34th post at the "Divorce & Hidden Money" series.
The instant post mentions hiding assets through a lawyer; offshore bank accounts; etc. It is the 33rd post at the “Divorce & Hidden Money” series.

Ohio lawyer David Keith Roland was recently disbarred for using a Swiss bank account in a scheme to help a divorcing wife hide marital assets from her divorcing husband. The divorcing wife in this alleged scheme was chiropractor Denise M. Carradine of Boardman, Ohio. Mr. Roland had represented Ms. Carradine in a divorce action commenced by Ms. Carradine’s then husband, Eric Martin.

As part of the alleged scheme to hide marital assets from Mr. Martin, Ms. Carradine reportedly supplied Mr. Roland with $854,261.10. The Ohio Supreme Court Decision disbarring Mr. Roland said Ms. Carradine had “structured” payments of this money to Mr. Roland “to avoid detection under banking laws.” Mr. Roland deposited the $854,261.10 into two client trust accounts. Mr. Roland then wire transferred $814,105.96 of the $854,261.10, into a bank account at Maerki Baumann & Co. in Zürich, Switzerland.

This Swiss bank account may have been a nominee bank account, (i.e. an account titled in the name of an intermediary), beneficially owned by Ms. Carradine. Some of the money from the Swiss bank account was also transferred into a bank account located in the Turks & Caicos Islands. Based upon the foregoing, Mr. Roland’s & Ms. Carradine’s alleged scheme to conceal marital assets might have involved: structuring; a gatekeeper/lawyer; nominee bank accounts; multiple jurisdictions; & offshore banks.

Illustration: ollo/Shutterstock.com

Copyright 2016 Fred L. Abrams

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This 11th post in my “Private Investigators” series focuses on how private investigators may use data brokers to search for your assets & other personal information.

The August 5th Bloomberg article “This Company Has Built a Profile on Every American Adult,” brings up IDI,Inc. The article suggests that IDI has built a profile about you on its idiCore database. Private investigators, debt collectors, lawyers & government authorities might access this database to search for your assets & other personal information. The end of the article also says “IDI’s marketing databases may help PIs predict people’s moves or digitally peek into their cars or medicine cabinets.” IDI could be collecting your personal information through data mining. How can data brokers like IDI mine data? They may analyze your clickstream, as mentioned by my May 11, 2015 post:

Data Brokers Searching For Your Assets, Bank Accounts & Other Personal Information?

As the Federal Trade Commission, (“FTC”), video depicted above reveals, data brokers (a.k.a. “information brokers”) and some other private sector businesses sell your highly personal information. The video says for example, your location, interests, prescriptions and medical history may all be “shared or sold.” Pages 22, 24, 34 & Appendix B-5 of a May 2014 FTC report similarly indicate that data brokers can search for your financial information including: where and when you open a bank account; estimated household income; the assets you own; loan history; credit card use and tax return transcripts.

Continue Reading Private Investigators: An Asset Search Via Data Brokers Like IDI,Inc.

Zinnel Post
This 32nd Asset Search Blog post in my “Divorce & Hidden Money” series, explains how Steven Zinnel is thought to have hidden assets during his divorce & personal bankruptcy.

Plastic surgeon Michael D. Brandner & business owner Goderick Augustus Benjamin were accused of committing federal crimes & hiding assets from their wives. Like Dr. Brandner & Mr. Benjamin, Steven Zinnel was a divorcing husband suspected of concealing assets from his wife. According to prosecutors in USA v. Zinnel, Steven Zinnel had hidden assets from his wife Michelle Zinnel; & Steven Zinnel had fraudulently concealed assets during his personal bankruptcy.

Mr. Zinnel reportedly filed his personal bankruptcy to hamper the Family Court’s distribution of property to Michelle Zinnel, during the couple’s divorce. Mr. Zinnel’s e-mail to Michelle Zinnel dated July 15, 2001, seemed to give a glimpse into Mr. Zinnel’s bankruptcy scheme. The e-mail said that as a consequence of Mr. Zinnel’s bankruptcy, Mr. Zinnel expected “all the money to be gone in less than two months” & that “[t]he property settlement will then be very easy.

During his personal bankruptcy, Mr. Zinnel however, failed to disclose valuable assets which were apparently hidden from Michelle Zinnel & others. Prosecutors ultimately charged Mr. Zinnel with money laundering & bankruptcy fraud. At Mr. Zinnel’s superseding indictment &/or other court filings, prosecutors essentially claimed that Mr. Zinnel concealed assets four ways, through:

  1. lawyers;
  2. shell companies;
  3. a business associate who Mr. Zinnel employed as his nominee/intermediary;
  4. nominee bank account[s] (i.e. accounts maintained in the name of others).

On March 4, 2014 Mr. Zinnel was sentenced to 17 years & 8 months of prison for bankruptcy fraud & money laundering. This case is perhaps best summarized by these two sentences prosecutors wrote at a June 14, 2013 court filing:

The Government’s theory of this case is that Defendant Zinnel wanted to commit bankruptcy fraud and money laundering for reasons of greed and spite. Zinnel loved money and hated his ex-wife [Michelle Zinnel]. USA v. Zinnel, Gov’t Opposition Paper filed 6/14/13, Docket No. 179, at p. 1.

Image:  Nikolai Moiseenko/Shutterstock.com

Copyright 2016 Fred L. Abrams

Laundry List Post:ImageGovernmental authorities follow money trails in order to interdict assets hidden by narco-traffickers; money launderers; Ponzi schemers; tax fraudsters & other determined criminals. During your asset search, you can similarly follow a money trail to track assets which have been hidden from you. You might detect a money trail by scrutinizing data related to the person or business entity suspected of hiding assets.

You can collect this data in some situations, by issuing subpoenas; using compelled consent forms; or through additional legal tools. Below is the “Financial Investigations Checklist” & it includes a laundry list of items which contain data.¹ You may be able to collect some of the items the list mentions: bank account records; telephone records; utility company records; credit card statements & many others. Data at these kinds of items could conceivably help you follow a money trail to assets hidden from you.

(To Read The Financial Investigations Checklist, Click On The Following Image)


Financial Investigations Checklist

 

¹Financial Investigations Checklist, Courtesy of The United States Department of Justice.

First image: Picsfive/Shutterstock.com

Copyright 2016 Fred L. Abrams

Trade-Based Laundering Photo

If your adversary is using a business entity to conceal assets from you, one thing to look for is trade-based money laundering. A June 2006 report by the Financial Action Task Force explains that trade-based laundering schemes can include: the over or under-invoicing of goods or services; the over or under-shipping of goods; falsely describing goods or services; or multiple invoicing.¹ You can search for assets hidden via trade-based laundering by spotting the red flags. Page 24 of the June 2006 report describes the red flags and some of them are:

  • a disparity between a shipped commodity’s bill of lading and its invoice.
  • a disparity between a commodity’s value as recorded on its invoice and fair market value.
  • the shipping of goods although there is no profit/economic benefit.
  • a shipment with a nexus to shell companies.
  • letters of credit related to a shipment that have been amended or extended repeatedly.
  • the type of shipped commodity is inconsistent with the importer’s/exporter’s ordinary business activities.
  • shipping to or from a high-risk geographical location (i.e. a jurisdiction especially vulnerable to money laundering).

Pages 9-20 of the June 2006 report also provide 12 case studies showing how trade-based money laundering can be used to conceal one’s assets. The August 24, 2007 plea agreement of Gene Haas might describe another case of trade-based money laundering. Mr. Haas entered this plea agreement after his arrest on June 19, 2006 for suspected tax fraud. Attachment A at the plea agreement says the Enmark Aerospace and Supermill companies had provided Mr. Haas with invoices for fictitious purchases.

According to Attachment A, Mr. Haas paid Enmark & Supermill millions of dollars pursuant to these invoices; and Mr. Haas then took business deductions for “cost of goods sold.” Attachment A also indicates that Enmark and Supermill eventually returned the millions, (less a 2% kick back fee), to Mr. Haas through Mr. Haas’ intermediary, CNC Associates, Inc. Stated differently, it seems that Enmark, Supermill and CNC Associates could have been employed as laundering links in a money laundering circuit. After Mr. Haas’ plea agreement, Mr. Haas was sentenced on November 5, 2007 to two years in prison for violating 18 U.S.C § 371. Mr. Haas additionally paid a $5 million dollar fine and over $70 million dollars in back taxes owed for 2000 and 2001.

¹ See p.4 at “Trade-Based Money Laundering,” Copyright © FATF/OECD. All rights reserved.

Image: Nomad_Soul/Shutterstock.com

Copyright 2007-2016 Fred L. Abrams

Your Search For Assets Hidden Offshore

When naming offshore havens for opening secret bank accounts, people usually mention Switzerland, the Cayman Islands, Liechtenstein, etc.  Meanwhile, bank accounts in almost any country can be put to work to hide & place assets out of reach. “Using Multiple Jurisdictions To Launder Money” discussed a suspected scheme to bribe judges in Italy.  According to prosecutors, illicit proceeds from this offshore scheme were hidden in bank accounts located in the U.S. & elsewhere. “Money Laundering, Marital Assets & Divorce” outlines another scheme which relied on cross-border elements to conceal assets. The scheme involved a divorcing spouse in the U.S. who hid undeclared revenue in a Swiss bank & then “washed” it through a bank in Germany.¹

As the above essentially suggests, tracking assets offshore can become a critically important part of your asset search. How do you search for assets hidden offshore? One way is by employing legal tools. The following article discusses the tools federal prosecutors may use to collect evidence from witnesses residing offshore.² Two of the tools the article mentions are compelled consent forms & letters rogatory.  These two tools are not just for use by prosecutors. They are sometimes used by divorcing spouses, judgment creditors & others searching for offshore bank accounts/assets hidden offshore:

Click On The Image To Read The Entire Article

¹The fact pattern supplied at “Money Laundering, Marital Assets & Divorce,” has been changed & sanitized for privacy reasons.

²“Obtaining Foreign Evidence Outside of The Mutual Legal Assistance Treaty Process,” U.S. Attorneys’ Bulletin March 2007, is supplied courtesy of the Executive Office for United States Attorneys.

Image of offshore banking & tax haven concept: ChameleonsEye/Shutterstock.com

Copyright 2016 Fred L. Abrams

Offshore Image 5:30:16
As this 31st post in the “Divorce & Hidden Money” series reveals, you may be able to employ letters rogatory to detect assets hidden offshore.

A letter rogatory is an application to a foreign tribunal. It seeks permission to serve process on or gather evidence from a foreign witness. If you are in a divorce in the United States, letters rogatory can usually help you collect evidence of offshore assets your spouse hid from you. You might use letters rogatory to search for assets which can include: bank accounts; real estate; valuable art; business entities; etc. My February 25, 2015 post mentioned the use of letters rogatory in relation to divorce/child support cases in New York.

The February 25, 2015 post discussed one ex-husband who for 30 years failed to pay spousal maintenance &/or child support to his ex-wife in New York. Since the ex-husband lived in places like Mexico, the Dominican Republic & Barbados, legal proceedings in New York did not get the ex-husband to pay his ex-wife. Had the ex-wife been able to afford it, she might have hired lawyers to seek the issuance of letters rogatory to search for the ex-husband’s offshore assets. You may similarly employ letters rogatory if you are in a divorce outside of the United States & your divorcing spouse hid assets from you in the United States.

These kinds of cases are highlighted at Part 1 & Part 2 of “Asset Searches In The U.S. For Divorces Brought Outside The U.S.”  Below is a translated copy of a letter rogatory arising out of a divorce in the Republic of Colombia at The 8th Family Court, in Barranquilla.¹ In connection with The Family Court’s distribution of community property from a marriage, the letter rogatory requests bank account/bank customer information at Bank of America in the United States.

Letter Rogatory Colomibia

¹The letter rogatory has been partly sanitized for privacy reasons.

Offshore Image With Cash: esfera/Shutterstock.com

Copyright 2016 Fred L. Abrams

Bank Deposit Image

In some situations, the transfer of large sums of cash is a red flag that assets have been hidden by money laundering. Government authorities therefore require banks to report their customers who transfer or exchange large sums of cash. For example, banks in the United States are required to report bank customers who deposit or withdraw more than $10,000 in cash. The banks fulfill this requirement by electronically filing a Currency Transaction Report.

A bank customer trying to evade the filing of a Currency Transaction Report can be prosecuted for structuring, (a.k.a “smurfing”), in violation of 31 U.S.C. § 5324. Opinion blogger Radley Balko talks about some of these prosecutions at “The federal ‘structuring’ laws are smurfin’ ridiculous.” As discussed by “An Asset Search Over Corruption Proceeds,” prosecutors accused former Russian diplomat Vladimir Kuznetsov of violating structuring law(s).

At Count Two pp. 6-9 of Mr. Kuznetsov’s superseding indictment, prosecutors alleged Mr. Kuznetsov had structured deposits he made in New York City at Chase Manhattan Bank & the United Nations Federal Credit Union. The following case study also discusses structuring.¹  It analyzes how a group of criminals hid illicit drug proceeds by structuring deposits, smuggling cash & going offshore:

Image Egmont Case 06082

Image of hand with money: Africa Studio/Shutterstock.com

¹Case Study/Case Ref: 06082 Courtesy Of The Egmont Group of Financial Intelligence Units

Copyright 2016 Fred L. Abrams