This "Asset Search News Roundup" contains a copy of the indictment filed against Minneapolis auto magnate Dennis Hecker. It also discusses the securities fraud complaints pending in New York against Bank of America.
“High Risk Locations & An Asset Search” and “Domestic Shell Companies & An Asset Search” explain that Delaware-based shell companies can especially pose a money laundering risk. My other articles related to this same subject are:
The Wall Street Journal’s February 4, 2010 article "Switzerland Freezes Freed Duvalier Assets", is about alleged illicit assets blocked in Switzerland. The blocked assets have been maintained in Swiss bank accounts and are believed to originate from Haiti’s public coffers. These public coffers were reportedly looted by former politically exposed person Jean-Claude "Baby
The Court announced yesterday that there had been a settlement in the New Jersey case involving Former Premier Michael Misick of the Turks and Caicos Islands. The settlement is mentioned at the Court’s Order of Dismissal and by the current docket report.
According to various court filings, the Former Premier could have been a beneficial owner of Hip Hop Weekly Magazine through his alleged interests in: My Way Productions 2 LTD. (“My Way”), Z & M Media LLC (“Z & M”), and the holding company for Hip Hop Weekly Magazine, Hip Hop Global Media, LLC (“HHG”). (Cf. Defendants’ Answer, Counterclaim and Third-Party Complaint at p. 26 ¶ 7) (claim that the Former Premier and his ex-wife LisaRaye McCoy were “real parties in interest”).
The Verified Amended Complaint in the New Jersey case meanwhile, indicated at ¶¶7, 57, 75, 78, 80 and Exhibit “H”, that My Way or Z & M or HHG, might have been involved in making substantial capital contributions:
Continue Reading New Jersey Lawsuit Involving Former Premier Misick Settles
By using customer identification or “know your customer” rules, banks try to prevent money laundering and other financial frauds. This use of customer identification rules by banks is contemplated at the Fifth Recommendation of the Financial Action Task Force. The Fifth Recommendation urges banks to diligently verify a customer’s identity and to record the true beneficial ownership of bank accounts.
As reported at “Fighting Financial Fraud At UK Banks“, the UK changed its banks’ “know your customer” rules on December 15, 2007, by codifying them at Money Laundering Regulations 2007*. U.S. banks too verify customer identities, but do so pursuant to 31 C.F.R Part 103.121. Lawsuits alleging that two U.S. banks had failed to sufficiently identify their bank customers, are respectively described at: “Associated Bank Sued For Supposedly Ignoring Red Flags” and “Lawsuit Claims Wachovia Bank Facilitated Alleged Ponzi Scheme“.
UBS AG and other Swiss banks also require customer identification at the time a bank account is opened. The customers of Swiss banks execute a declaration of beneficial ownership, commonly referred to as a “Form A”. A July 13, 2001 “Form A” was used in the U.S. tax fraud case brought against Florida yacht broker Robert Moran. According to the Plea Agreement in Mr. Moran’s case, the July 13th “Form A” helped demonstrate that Mr. Moran had violated 26 U.S.C. § 7206 (1), (perjury on a return / false statements).Continue Reading Customer Identification At UBS AG And Some Other Banks
The securities fraud complaint in Nesbeth v. USMIO, Docket No: 09−cv−62042−WJZ, alleges that Wachovia Bank caused damage to the supposed victims of a Ponzi scheme. This complaint, (referred to hereinafter as “the Florida Complaint“), also asserts claims against: MasterCard Worldwide, Mr. David Smith of Jamaica, Overseas Locket Corporation formed in Jamaica, Former Premier Michael Misick of the Turks and Caicos Islands, etc.
The Florida Complaint alleges that Mr. David Smith had operated a Ponzi scheme which reportedly involved six thousand victims from the Jamaican community and might have caused $220 million in losses. Florida Complaint at ¶¶31, 37 & 38. The suspected illicit proceeds of the scheme may have been used to invest in businesses and possibly pay for: real property, a lavish cruise, valuable watches (i.e. portable valuable commodities), ornamental furniture and exotic automobiles. Florida Complaint at ¶52.
According to the Florida Complaint at ¶49, proceeds from the scheme had additionally been laundered through bank accounts, including one maintained at Wachovia. Like the Wisconsin Complaint earlier provided at “Associated Bank Sued For Supposedly Ignoring Red Flags“, the Florida Complaint essentially claims that a bank’s anti-money laundering program / Customer Identification Program pursuant to 31 CFR 103.121 ¶ (b) (2) (i), failed.Continue Reading Lawsuit Claims Wachovia Bank Facilitated Alleged Ponzi Scheme
Governmental authorities sometimes use data mining and money laundering typologies to detect financial fraud trends. An earlier financial fraud trend we will undoubtedly see in 2010, is beneficial owners hiding assets through nominee bank accounts. Another likely continuing trend for 2010, is the use of Delaware-based shell companies to facilitate money laundering in some cases.
The Association of Certified Anti-Money Laundering Specialists is a private sector anti-money laundering credentialing organization and Colby Adams is a reporter affiliated with it. Mr. Adams telephoned me this week to discuss my thoughts about abusive offshore tax avoidance schemes and The "John Doe" Summons Case, which was settled with UBS AG.
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The January 6th article “Three in al Qaeda drug case plead not guilty in NY” discussed suspected terrorist financing by some West African men. According to a December 18, 2009 press release, the criminal case against these men involved the alleged transnational funding of Al Qaeda terrorists through narco-trafficking.
“Terrorist Financing, Money Laundering & Financial Intelligence Units” referred to another case of suspected terrorist funding. It mentioned the Egmont Group’s money laundering typology case numbered 06063:
(Above Case# 06063: Courtesy of The Egmont Group)Continue Reading Transnationally Tracking The Assets Of Terrorists
At first glance, there was nothing unusual about the lawsuit filed in New Jersey involving Former Premier Michael Misick of the Turks and Caicos Islands. The complaint in the lawsuit executed by the Former Premier, claimed that Hip Hop Weekly Magazine founders David Mays and Raymond Scott had misappropriated the magazine’s cash.
Mr. Mays and Mr. Scott separately alleged in their answer, counterclaim and third-party complaint, that the Former Premier had been an investor in the magazine and was basically one of its owners. On March 23, 2010, there was a status and settlement conference scheduled in the lawsuit, as mentioned by the Court’s docket entry:
(Click On The Above Image To View The Docket Report)
“Target Of Corruption Probe Sues Hip-Hoppers For Supposed Fraud” meanwhile, explained that the Former Premier had been the subject of a public corruption probe by the Turks and Caicos Islands Commission of Inquiry. The Inquiry issued its Redacted Final Report, which had once been available here. This Final Report asserted that the Former Premier was known to have enjoyed a “Hollywood lifestyle” beyond his salary and allowances as a politician. It also raised the critical questions: Had the Former Premier been a party to public corruption and could he have taken illicit monies?Continue Reading Could Former Premier Misick Face U.S. Forced Collection Proceedings?