Kenneth Rijock

Kenneth Rijock

Thursday, July 28, 2016

US PROSECUTORS INITIATE CRIMINAL INVESTIGATION AGAINST MOSSACK FONSECA LAWYERS AND STAFF


According to reliable US sources, Federal prosecutors are now conducting criminal investigations into whether Mossack Fonseca attorneys and staff committed money laundering, or tax evasion offenses, on behalf of their clients. If the MF lawyers & staff are not already radioactive, due to the Panama Papers disclosures, this new development will make current, or even former, employees, extremely high risk as new hires.

MF standard operating practice was to form bearer-share BVI companies for clients; it is virtually impossible to identify the beneficial owners  of such corporations, and there is evidence of the creation of bank accounts, and to even make investments for MF clients. Whether MF lawyers and staff acted for their clients, with the intent to assist the clients in evading taxes, or laundering their money, will be the central issue, but proof sufficient to convict could come if the clients themselves testify against the Mossack lawyers and staff members; That may happen more often than not.The real question is whether the name partners will themselves be indicted in the United States.

ARE CAYMAN GANG OF FOUR CONDUCTING A FRAUD UPON THE COURT WITH B & C CAPITAL LIQUIDATION ?


B & C Capital, Ltd., a Cayman Islands company controlled by the island's mega-fraudsters,  Derek Buntain, Ryan Bateman, Sharon Lexa Lamb, and Fernando Mendes, members of the Cayman Gang of Four, appear to be orchestrating the court liquidation of the corporation, and truth has been the first casualty. Did Derek Buntain perjure himself, when he executed a worn statement, in connection with the proceeding ? How is he possibly qualified, under the law for any purpose, in this case ?

Individuals acting for some of the Canadian victims of the multi-million dollar fraud, whereby the Gang stole  from accounts at Dundee Merchant Bank, and laundered their booty through B & C Capital,  then another controlled shell, Bateman and Company Ltd., and then DMS Bank & trust Ltd., en route overseas, have been seeking details of the liquidation proceedings. Though  B & C has been defunct for some time, and was insolvent when victims sought their money from its agent, Sharon Lexa Lamb, they still maintain an interest in the case.

 Imagine their surprise when they learned that Derek Buntain, the cashiered ex-president of Dundee Merchant Bank, and the number one suspect, with regard to looting the bank's accounts, with Lamb, another senior bank officer, has executed the required affidavit of creditor or debtor. Inasmuch as Buntain, who is currently hiding out in rural Canada, and unavailable, signed a sworn document, this is not only a clear conflict of interest, and the liquidation itself is a fraud upon the Cayman Court.

Unfortunately, Cayman Islands courts do not have the same degree of transparency as we see in North America. Buntain's bogus affidavit is not available to the public, although truth and justice seems to require openness in any English Common Law court, wherever it sits. Is the entire liquidation a fraud as well ? The court should make that document available to the public, unless it wants to perpetuate the cycle of fraud, where Cayman government agencies, including law enforcement and regulators, routinely and deliberately ignore the victims, and sweep it all under their Caribbean rug.

COMPLETE TEXT OF FLORIDA ORDER DISMISSING MONEY LAUNDERING CHARGE FOR BITCOIN TRANSACTION

I am making the 8-page Order Granting Defendant's Motion to Dismiss the Information, the Miami-Dade County Circuit Court, Criminal Division decision that held that Bitcoins do not meet requirements of monetary instruments, and therefore, transactions involving Bitcoins are not financial transactions, available, as I have not seen it online.

The Court, speaking through Circuit Judge Teresa Pooler, ruled that a defendant, who engaged in two Bitcoin transactions, was neither an unauthorized money transmitter, under Florida Law, nor engaged in a transaction involving the proceeds of a specified unlawful activity, for the purposes of the money laundering statutes.

You can expect the State Attorney Office, in Miami, Florida, to file an appeal to the third District Court of Appeal, as this is a question of great public interest.











VICTIMS OF CAYMAN GANG OF FOUR CLAIM BAHAMIAN DRILLING LICENSES BELONG TO THEM


According to investigators, who traced money stolen from Canadian pensioners' accounts by the notorious Cayman Gang of Four, fugitive trader Ryan Bateman used Cayman-laundered criminal proceeds to purchase oil & gas exploratory drilling licenses from the Government of the Bahamas, and therefore the victims are claiming that they have equitable title to those licenses. This development may have political consequences in the Bahamas, where Opposition leaders have questioned the sale of the leases to a known financial and domestic criminal, and whether there was any impropriety, or corrupt activity, involved.

Reportedly, the leases, which both Bateman, as well as Atlantic Petroleum Limited, and Bahamas Exploration Limited, claim as theirs, were paid for with funds Bateman illegally transferred to the Bahamas, through a Cayman financial institution, that has itself come under scrutiny, due to a reputed Ponzi scheme that was routed through the bank.


Ryan "Kim"  Bateman
In any event, the former leadership of the Bahamas has been presented with some tough questions. Whether an anticipated court battle, in Nassau, or Grand Cayman, over the drill licenses, will answer them, is another matter. Will a court of competent jurisdiction award the licenses to the victims of the Cayman Gang of Four ? Stay tuned, and watch the fur fly in Nassau, when former government officials  fail to address the many questions that remain unanswered.

BENEFICIAL OWNER DISCLOSURE IN CASH SALES EXPANDED IN NY, EXTENDED TO CALIF & TX


Readers who want to read the complete text of the expanded FinCEN Geographic Targeting Order, which now includes all of NYC, Fort Lauderdale, Boca Raton & Palm Beach, and part of California & Texas, meaning that cash buyers, using shell companies, will be required to be identified, can read it here.

Wednesday, July 27, 2016

DYSFUNCTIONAL SCREENING SOFTWARE RESULTS IN VIOLATION FOR BANKING KINGPIN ORGANIZATION MEMBERS

The function of bank  sanctions screening software is, among other things, to screen for individuals named or designated by OFAC. If that software cannot do that, you have not only wasted a lot of money, you run the risk of being named & shamed by Treasury, in a very public way, on the Civil Penalties webpage, through a Finding of Violation.

Compass Bank, of Laredo, Texas, which does business as BBVA Compass Bank, had a bank client who was designated by OFAC, due to her Guadalajara, Mexico-based family's involvement in money laundering operations on behalf of Rafael Cara Quintero, an OFAC-designated Drug Kingpin.

The bank failed to identify the customer as a sanctioned individual, notwithstanding numerous negative news reports about the matter. Amazingly, the bank's sanctions screening software totally failed to hit on her account, due to what the bank blamed on a "misconfiguration" in the screening software. The software was not checking dormant or inactive accounts for new OFAC hits. We call this compliance malpractice.

Who at the bank was responsible for seeing that screening software was  working properly ? Who was checking, monitoring, and auditing its operation periodically ? Where was the annual outside audit of the bank's compliance program.

Even without the OFAC designation, those local newspaper articles, naming the bank client, should have been required daily reading for Compass Bank Compliance officers. Who fails to read local news about money laundering and drug trafficking in their area ? I believe the bank needs a new compliance division, for the current one abjectly failed.

Readers who wish to read the complete text of the Violation can access it here.

Tuesday, July 26, 2016

ARE WE NOW TO DISTRUST ALL CHINESE MEDIA FOR COMPLIANCE PURPOSES ?


The disclosure that the most well-respected Hong Kong newspaper, the South China Morning Post, ran a story that was clearly planted by the Government-controlled press in Mainland China, has probably dealt a fatal blow to the credibility of the paper, and cast doubt on its future ability to carry stories that are critical of Beijing.

 The Hong Kong-based daily was purchased by a Mainland China business magnate, and it appears that promises of integrity and objectivity in content will not be kept. Whether this "arrangement" is being practiced, unofficially, at other Hong Kong media is not known. How much new management goes on in Hong Kong ?

Add this to the fact that three Mainland China Internet news sites, which have carried negative news in the past, have been shut down, and one wonders whether it is prudent to rely upon ANY Chinese news sources, when conducting due diligence investigations, in the future.