HIDDEN MONEY & CRIMES
When one spouse uses different ways to hide money from the other spouse, criminal laws are sometimes violated. The spouse who has hidden money because of a divorce could conceivably commit one or more of these crimes:
- 26 U.S. Code § 7201 (tax fraud);
- 18 U.S. Code § 1341 (mail fraud);
- 18 U.S. Code § 1343 (wire fraud);
- 18 U.S. Code § 1956 (money laundering).
Mr. Benjamin’s Divorce & His White Collar Crimes and my post mentioning Dr. Michael Brandner, are about divorcing husbands thought to have hidden money from their wives and the IRS. Mr. Benjamin apparently hid money domestically & Dr. Brandner reportedly hid money offshore. Although Mr. Benjamin & Dr. Brandner are believed to have used different ways to hide money, both were convicted of tax fraud (26 U.S. Code § 7201) & wire fraud (18 U.S.C. § 1343).
SOME WAYS TO HIDE MONEY
Prosecutors claimed Mr. Benjamin had hidden money by: failing to file tax returns; pocketing cash payments from customers; paying personal expenses from a business bank account; and cashing customers’ checks instead of depositing them into his bank account. Meanwhile, prosecutors in USA v. Brandner alleged Dr. Brandner hid money by driving across international borders with cash &/or checks &/or gold. Prosecutors also alleged at their superseding indictment or trial brief that Dr. Brandner hid money via: a safe deposit box in Costa Rica; bank accounts in Costa Rica & Panama; & a Panamanian shell company which had a nominee president who was Dr. Brandner’s intermediary.
AN ISLE OF JERSEY TRUST
Last month prosecutors in USA v. Kozel similarly claimed millionaire Todd Kozel hid money from his ex-wife by going offshore. From 2004 to 2014 Mr. Kozel was the CEO of Gulf Keystone Petroleum Ltd. While CEO, Mr. Kozel reportedly had an average annual income of about $10 million. Mr. Kozel’s December 14, 2018 criminal complaint basically alleged that with the help of a Swiss lawyer/gatekeeper, Mr. Kozel formed a sham offshore trust on the Isle of Jersey. Mr. Kozel apparently used the trust to conceal his true beneficial ownership of millions of Gulf Keystone Petroleum Ltd. stock share certificates. Additionally, Mr. Kozel is thought to have concealed his beneficial ownership of a NYC condominium which Mr. Kozol claimed he only rented. Mr. Kozel is alleged to have secretly purchased the condominium through a NYC shell company supposedly controlled by Mr. Kozel’s trust. Mr. Kozel’s December 14th criminal complaint is reproduced below.