I first published this post on December 14, 2007 and it is now the 12th post in the “Divorce & Hidden Money” series. As shown below, a divorcing spouse’s effort to valuate marital assets occasionally raises tax fraud or other criminal law issues. Furthermore, assets and income can be concealed by pocketing cash
Searching For Corruption Proceeds & Other Assets On The Island Of Jersey
At Carmelite Chambers International Fraud & Assert Recovery Conference, I met Advocate & English Barrister Stephen Baker of Baker & Partners from St. Helier, Jersey. During the Conference, Mr. Baker presented his slideshow with case studies about recovering suspected corruption proceeds or other assets.
Some of Mr. Baker’s slides reveal how foreign bank accounts; multiple jurisdictions and nominees, (i.e. intermediaries), could be used as elements in suspected laundering schemes:
One topic Mr. Baker’s slideshow covers is the investigation of the late Nigerian dictator Sani Abacha. As Baker & Partners’ webpage explains: “Baker & Partners were central to the successful Jersey investigation into the alleged laundering of the proceeds of the corrupt Nigerian Dictator General Abacha’s crimes through Jersey. This investigation has already resulted in over USD $160,000,000 being returned to Nigeria.”
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Recovering Illicit Assets Via Switzerland’s Mutual Legal Assistance Unit
Mr. Pascal Gossin is the head of Switzerland’s Mutual Legal Assistance Unit, (“the Unit”), which is part of the Federal Office of Justice. Mr. Gossin was a fellow speaker at the Carmelite Chambers International Fraud & Asset Recovery Conference, which I attended last month.
If the Unit suspects a dictator or other Politically
Divorce & Hidden Money: Whistleblowing, Tax Fraud & Tipping The IRS
The post “An Asset Search, Tax Fraud & Divorce” was first published at the Asset Search Blog on January 16, 2008. It is republished below as the seventh post in the “Divorce & Hidden Money” series. The post describes my investigation of a divorcing husband. While I was the divorcing wife’s attorney, I discovered the husband had hidden money offshore in anticipation of the divorce. I also suspected the husband concealed this money from the IRS in furtherance of a tax fraud.
If evidence of tax fraud is brought to the attention of a judge presiding over a divorce, the judge may report the fraud to the IRS. When the divorcing husband admitted in his affidavit that he had not paid taxes, the judge in Hashimoto v. De La Rosa, 2004 slip op. 51081(Sup. Ct. N.Y. County, June 23, 2004) reported him to the I.R.S. In Beth M. v. Joseph M., 2006 slip op. 51490 (Sup. Ct. Nassau County, July 25, 2006), the judge similarly reported a husband who testified during court proceedings that he had not filed tax returns for the years 1997 through 2001 and other times.
Some divorcing spouses meanwhile, directly tip the IRS about their spouse’s tax fraud. The spouses supplying these tips may be eligible for a reward as participants in the IRS Whistleblower program. It typically takes six or more years for an IRS whistleblower to collect any reward and a whistleblower can face many challenges. More information about blowing the whistle is at the Reuters article Record $104 million reward boosts whistleblowing on tax cheats, which cites me; and the New York Times article The Price Whistle-Blowers Pay For Secrets.
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Mr. Francis Supposedly Built A Business Empire By Defrauding The US
Leonard Glenn Francis is a Malaysian national who is the CEO and owner of Glenn Defense Marine Asia, a general contractor to the United States Navy. He is suspected of using Glenn Defense Marine Asia to defraud the Navy out of an estimated $20 million. At a November 22, 2013 court filing, prosecutors argued that Mr. Francis “ has built a business empire based on defrauding the United States.”
Mr. Francis is accused of fraudulently billing the Navy while supplying its ships with marine husbanding services (i.e. fuel, tugboats, food etc.). Mr. Francis supposedly also bribed senior Naval officials with cash, lavish travel and the service of prostitutes. These Naval officials are thought to have provided Mr. Francis with secret information about criminal investigations into him; and / or they allegedly disclosed confidential defense procurement information.
The Washington Post reported that the possible involvement of two admirals in the alleged public corruption scheme, “makes the crisis the worst to tar the Navy since the 1991 Tailhook scandal, when a convention of naval aviators sexually assaulted scores of women.” A September 12, 2013 complaint filed in one of three criminal cases pending against Mr. Francis, included purported e-mails. They were allegedly sent from April 27 to May 21, 2012, between Mr. Francis and a codefendant, Mr. John Bertrand Beliveau, Jr. Mr. Beliveau has been employed as a Special Agent by the Naval Criminal Investigative Service since about 2002 and his purported e-mails are set forth below.
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Divorce & Hidden Money: Alaskan Plastic Surgeon Accused Of Concealing Millions In Central America
This is the first post in the “Divorce & Hidden Money” series:
During ultra-high net worth divorces, one party can conceal vast sums of money from the other by going offshore. Stated differently, divorcing spouses may hide their wealth by utilizing cross-border elements, as money launderers do. The Financial Action Task Force
Asset Search News Roundup: September 8, 2013
Seizing mob assets and tipping the SEC:
- The article “Mafia hurt by asset seizures but still too strong to beat” suggests that Italian asset forfeiture laws are critically important in fighting the Italian mob. The article quotes a magistrate in Naples who “told Reuters the confiscation of assets was a vital
Asset Search News Roundup: August 16, 2013
A low-cost asset search; two ex-JP Morgan bankers accused of concealing trading losses; and Rafael Caro Quintero:
- “A Low-Cost Asset Search” reveals how computer-based research could lead to the discovery of a beneficial owner’s hidden assets.
- “Feds charge former JPMorgan Chase bankers in ‘London Whale’ case” reports on the indictments of
Locating Hidden Assets By Spotting The Red Flags
Domestic tax authorities, financial Intelligence units, bankruptcy trustees and banks rely on red flags to detect illicit assets, as mentioned by “Recognizing Hidden Assets, The Red Flags.” Recognizing Hidden Assets, The Red Flags notes that a broad range of litigants may uncover hidden assets by spotting the red flags. These red flags are
‘I’ll Stay Here Until The Last Of You Gets To Donate’
The article “Wirapol Sukphol, Jet-Set Buddhist Monk Shocks Thailand With Religious Scandal” discusses a Buddhist monk in Thailand suspected of misappropriating charitable donations to support his life of luxury. This article indicates that the now former monk Wirapol Sukphol, may have collected charitable donations by swindling donors, to whom he reportedly once said: