WIFE OF INDICTED FORMER PRIME MINISTER MAKES A MAD DASH FOR THEIR SWISS BANK ACCOUNTS

MICHELLE MUSCAT, the wife of indicted former Maltese Prime Minister JOSEPH MUSCAT, according to a Maltese media report filed by Mark Camilleri, was seen boarding a flight to Zurich. Given that her husband was this week stopped from flying abroad the week by the duty judge in his money laundering and corruption case, there is a presumption that her trip was not a shopping venture, but a mad dash to draw out some, or all, of the allegedly bribe & kickback money her husband received while PM, or since he left office.

While Mrs. Muscat is not currently a defendant in the Malta hospitals case, any movement of the proceeds of crime, where the bribe money was delivered by US businessmen, using Swiss shell companies, MM will implicate herself in violations of US criminal law, especially the Money Laundering Control Act of 1986, which provides for maximum penalties of twenty years' imprisonment per count.

DODGY CBI CONSULTANCY BELIEVED TO BE OWNED BY ONE OF THE ST.KITTS RICO LAWSUIT DEFENDANTS DISAPPEARS.

No sooner had we yesterday exposed LEMONWATER CAPITAL whose website shows that it is a vendor of St. Kitts & St. Lucia CBI passports, and which posted misleading and intentionally confusing misinformation about the news regarding revocation of illegally-purchased CBI passports, than its website, and its Linkedin pages, promptly disappeared from the Internet. No address appeared on the site, and we understand that they were using encrypted anonymous email to correspond with clients. We do not know where they were operating from.

We believe that the the beneficial owner of this anonymous bad actor to be one of the party defendants in the $450m RICO civil suit styled MSR MEDIA SKN vs. LES KHAN et al, presently pending in US District Court in the Middle District of Florida. We will continue our investigation and advise our readers accordingly.

GLOBAL CBI CONSULTANCIES AND THE UNAUTHORIZED PRACTICE OF LAW

When applicants wishing to acquire Citizenship by Investment (CBI) passports, which they are seeking to obtain from countries in Europe and the East Caribbean that offer them for sale, They erroneously believe that they are receiving legal advice from competent, qualified attorneys at CBI consultancies. Nothing could be further from the truth; they are being fed marketing talking points, often from sales agents who have never been to law school, or if they are lawyers, are not admitted to the practice of law in the jurisdictions where they are rendering what amounts to legal advice.This is known as the Unauthorized Practice of Law, and as a result,  CBI applicants are not being properly given full and accurate legal advice, to their detriment, which they often discover later on, long after the sale.

If you look closely at the websites of the most prominent CBI consultancies, they refer to their staff as "legal specialists, " and not attorneys, solicitors or lawyers. This is because, to render legal advice to a client, which is defined  as  " The giving of a professional or formal opinion, regarding the substance or procedure of a matter,  in relation to a particular factual situation. The provision of legal advice will often involve  analyzing a set of facts, and advising a person to take a specific course of action, based upon the applicable law."

the individual rendering the advice must not only be an attorney, he or she must also be formally admitted to practice in the jurisdiction where the client is being directed to apply for a CBI citizenship and passport. If you inquire, you will find that most of the so-called legal specialists or legal experts selling CBI products have not graduated from law school, they are merely salesmen, and the very few who possess legal educations are NOT admitted in the countries where they are advising their clients to purchase CBI products.

What are the clients usually missing, when they buy a CBI citizenship from such an unqualified person:

(1) Information on the possible tax consequences which may arise from their purchase.
(2) Details of how the jurisdiction can revoke or suspend their citizenship and passport.
(3) Information on whether they will be subject to increased risks, especially scrutiny from
law enforcement agencies, customs and immigration officials, and other  governments, as the direct result of their using their CBI passport in international travel, including interrogation from border agencies.
(4) Information about the possible public publication of the fact that they hold a CBI passport from a jurisdiction known to sell CBI products to money launderers, white collar criminals, Politically Exposed Persons (PEPs) and other high-risk individuals.
(5) Negative or unwanted publicity in their home countries, if international media reports on their possession of a CBI passport.

Most CBI applicants do not retain independent counsel to advise them about their CBI purchase, which is a major mistake, for the CBI consultancy, who receives a large commission in the sale, will certainly not be objective about their advice. unfortunately, the countries issuing CBI passports, who receive large fees from the applicants, will never complain about the quality of advice rendered to their buyers. Let the CBI buyers beware, caveat emptor, when it comes to CBI products, lest they get burned.

INDICTED FORMER PRIME MINISTER SEEKS TO ESCAPE VIA TURKEY; HE IS FOILED AFTER JUDGE REQUIRES COURT PERMISSION FOR ANY TRAVEL ABROAD

The indicted former Prime Minister of the Republic of Malta, JOSEPH MUSCAT, apparently sought to evade justice after he was charged with money laundering, corruption, bribery and a host of other crimes; he bought a ticket to Dubai, traveling via Istanbul. Unfortunately for him, the judge in his criminal case entered an order requiring that all travel abroad be first approved by the Court. Muscat then abruptly cancelled his flight reservations.

Dubai is often the destination of fugitives from justice, and fraudsters who are engorged with the proceeds of crime, who often conceal their ill-gotten gains in Emirates banks, which are known to be notorious for accepting deposits of international fugitives that most jurisdictions' financial institutions would not touch.

Rumours continue to fly around Malta that Muscat, and his political associates, known as the Merry Men of Corruption and Money Laundering, will eventually be charged with major felonies in Federal Court in the United States, for allegedly accepting bribes and kickbacks from American businessmen who defrauded Malta out of hundreds of millions in the sordid hospitals purchase scandal.

WATCH OUT FOR MISLEADING PROPAGANDA ATTEMPTING TO CONFUSE YOU ABOUT THE CBI PASSPORT REVOCATION ISSUES

No sooner did the smoke settle from the filing of the RICO lawsuit in the US, asserting that illegally discounted St. Kitts & St. Lucia CBI passports were being sold, en masse, to Chinese nationals using counterfeit identification, than a subtle propaganda campaign, obviously supported by individuals who benefitted from such sales, has surfaced. Considering that there is a very good chance that criminal charges will be filed against anyone that knowingly participates in this transnational fraud, posting disinformation discounting the seriousness of the crimes involved, such as money laundering, is not only dangerous, it is a disservice to the investing public.

Lemonwater Capital" is a mysterious entity whose name appears in the comments shown below. There is no address or telephone number on its website, nor do the names of any of the officers or agent appear anywhere. As for the location, the Linkedin page states Delhi, but the website features a map of Charlotte, North Carolina. there may be no brick-and-mortar company, but nevertheless, Lemonwater arrogantly chose to confuse the readers of an article about St. Kitts government promising to cancel and revoke illegally issued passports. The Canada address is a PO box in a UPS Store.

There is no human rights issue on the facts, where the applicant, with the aid and assistance of passport sales agents, used a fake identification to obtain an SKN passport, which can be used to easily obtain a United States B1/B2 Visa, affording entry, which could be used for criminal or even terrorist objectives. These bogus passports represent a Clear and Present Danger to the Security of the US, as well as any other Western country; they pose a direct National Security risk. Ignore the static, which is definitely intended to confuse you, and steer you away from the truth.

Please, when reading any media regarding Citizenship by Investment passport sales, check your source carefully; is it something from the same industry that stands to gain from covering up the truth about the illegal issuance of CBI passports? Ignore any obvious propaganda, whether it be disinformation or misinformation, in the chatter arising out of this important, and controversial, topic, whether you are an investor, compliance officer, attorney handling economic citizenship clients, or simply one seeking accurate information. You definitely want to blot out the noise of bad actors like Lemonwater; read the RICO complaint, investigate for yourself, and learn the truth about this sordid story.

US BANKS THAT CONTINUED TO MAINTAIN CORRESPONDENT ACCOUNTS FOR EAST CARIBBEAN FINANCIAL INSTITUTIONS ENGAGED IN ILLEGAL CBI FUNDING ACTIVITIES FACE INCREASED EXPOSURE TO BEING DRAWN IN THEMSELVES, FOR FAILURE TO TIMELY DE-RISK

The recent filing of MSR Media SKN Ltd. vs. Leslie Khan, 24-CV-01248 (MD FL), which alleges that party defendant St. Kitts-Nevis-Anguilla National Bank has engaged in racketeering activities, including money laundering and fraud, has put a spotlight upon all Caribbean financial institutions that bank Citizenship by Investment (CBI) payments to the five East Caribbean states that offer such programs. The case, filed in US District Court in Florida, asserts that the bank knew or should have known that illegal activities were occurring; inasmuch as the bank maintains, in the US, correspondent accounts, to process the US Dollar-denominated payments, which are tainted by illegality under Kittitian law, American banks that have failed to exercise De-Risking, meaning closing those accounts, could be liable for Willful Blindness, and other serious money laundering offenses. The funds involved exceeded one billion dollars; the Prayer for Relief in the Complaint is for treble damages in the amount of $450m.

Given that it has long become public knowledge that illegal discounting of CBI passports have long existed, and that the St. Kitts National Bank, which has reportedly failed to rein in the illegal activity transiting its accounts, much of which end up in its correspondent accounts in US banks, the exposure of American financial institutions themselves to litigation has now increased exponentially since the MRS Media case was filed. Whether US banks take immediate action to reduce that risk, in advance of litigation, byDe-Risking forthwith, as well as examining accounts of other CBI funds processing banks, we will be closely monitoring. The RICO litigation has raised awareness of illegal activity in the CBI industry, and whether American banks now respond, as a part of their risk-based compliance program, and disengage from the bad actors moving finds through their correspondent accounts, is the question, but we will be watching.

READ ABOUT RICO DEFENDANT DENZIL DOUGLAS' OTHER CIVIL AND CRIMINAL VIOLATIONS OF THE LAW.

Inasmuch as Mr. Douglas has now been charged with multiple violations of the RICO Act, in the new US District Court case fled in Florida, we though it important for our readers to see what other criminal and civil misconduct he has engaged in, in St. Kitts, and elsewhere in the East Caribbean. We have six (6) other article on this blog detailing his offenses; you are advised to read them. Here is but one of them.

APPEALS COURT HOLD THAT ST. KITTS' DENZIL DOUGLAS MUST VACATE HIS SEAT IN THE NATIONAL ASSEMBLY FOR A DOMINICAN DIPLOMATIC PASSPORT

One of the Caribbean's dirty little secrets is that senior politicians and government officials can acquire diplomatic passports, not just from their own country, but from others in the region., through political contacts in those countries.The fact that these passports violate the United Nations' Vienna Convention do not bother these corrupt officials in the least. Denzil Douglas, the leader of the Opposition, was accused by his political opponents in St Kitts of possessing a diplomatic passport from Dominica, and using it for international travel. Given that a number of foreign individuals with St Kitts passports and diplomatic passports have been involved in criminal conduct, Douglas obviously wanted a less notorious travel document. Unfortunately, his possession of a second nationality violates the St Kitts Constitution.

 Copies of his passport have appeared in the press, and that fact has agitated Kittitians who accuse Douglas, a member of his country's National Assembly, of having allegiance, obedience, and adherence to a foreign state, which bars him from holding elected office, under the country's Constitution. Government subsequently appealed a lower court decision favorable to Douglas.

The Court of Appeals of the Eastern Caribbean Supreme Court, in a decision dated March 12, 2020, has held that Dr. Denzil Douglas, the leader of St Kitts' Opposition Labor Party, must vacate his seat in the National Assembly forthwith. Douglas, by virtue of the fact that he holds a diplomatic passport from the Commonwealth of Dominica, cannot serve in the National Assembly.

The application and the diplomatic passport.

SANCTIONS EVADERS, FRAUDSTERS AND THE USUAL SUSPECTS ARE DRAWN TO CRYPTO LIKE MOTHS TO A FLAME

Bad actors just cannot seem to tear themselves away from diving into Cryptocurrency; whether it is the attraction, due to its position outside the compliance-laden legacy financial system, its volatility, or its actual cash value due to marketplace supply & demand, traders have made crypto a most dangerous and high risk item, and surely not for the timid at heart. If you, to paraphrase the old SEC wisdom, can stand to lose your entire investment, then Crypto (in caps, of course) is for you. Can you say Risk vs. Reward, three times fast? Does your tongue get caught in the process?

The problem is, it does, in many cases, put a bull's-eye on your back, for the purposes of risk, and not just that you might lose some money. Crypto is a definite target of law enforcement agencies, because a large portion of the players end up as Ponzi schemers, fraudsters, and flight risk. We call it 'Take the Money & Run,' by the way. There is a good chance that you will reap a tidy profit, so it's the financial instrument du jour in 2024, notwithstanding the risks.

Well, it's a free marketplace, but its very nature makes effective AML compliance problematic, and unless and until someone can invent a better Compliance Mousetrap, to rein it in, you pays your money and you take your chances. Here's hoping that some wise software genius gives us a solution, but meanwhile, risk levels remain off the charts for compliance purposes, Caveat Crypto, please. Where's that bloody working Mousetrap, anyone?

ON MEMORIAL DAY, WE REMEMBER THE 58,200 AMERICANS WHO DIED IN THE VIETNAM WAR

                                                                     REST IN PEACE

WHY MONEY LAUNDERERS GO UNDETECTED; HOW COMPLIANCE OFFICERS CAN STOP THEM

                                       Readers may want to take advantage of this free seminar.  

AN OPEN LETTER TO JOSEPH MUSCAT, AS HE STANDS ON THE EDGE OF AN ABYSS, WITHOUT ANY CHANCE OF ESCAPE

Joseph-                                                                                                                                                              I have been covering your career for many years, but life as you know it is coming to an end. Malta itself is at a crossroads; will it continue to be a Mafia state, where an unholy, unchristian partnership forged between organized crime and the ruling Labour Party created a kleptocracy, where literally billions of Euros were stolen from the public, through criminal acts, and through alliances with dark figures who lined the pockets of local politicians, satisfying greed and avarice.

Much of the sins and transgressions took place on your watch, and under your twisted leadership, either directly, or indirectly, and it appears that, at long last, you will finally be held to account for them, in courts of law in multiple jurisdictions. The appearance in Malta, of criminal investigators from the United States Department of Homeland Security, is an indication that the end of your long evil journey will be in an American courtroom, and I am sure that you know there is a better than even chance that you could spend the rest of your life in prison, far from home. This will, of course, be after  enduring a humiliating trial, where all your sins will be proven in a court of law, and your Maltese political supporters will learn the sad truth about your decades of corrupt conduct, and betrayal of your public duties while in office.

Please consider this advice from one who has been there, to disregard any legal advice that you may be receiving from counsel, and to increase the chances that you might spend at least a few years at the end of your life at home, and start cooperating with the authorities, to begin, albeit very late, atoning for your sins by assisting law enforcement authorities, to mitigate your ultimate sentence. To do otherwise, we guarantee a very unhappy ending to what will be a dark final chapter. You are an educated man, and you know what the wages of sin ultimately are.

KENNETH RIJOCK

ESCAPE OF CONVICTED CRIMINAL LINKED TO PROTECTION OF MALTESE ORGANIZED CRIME BY COUNTRY'S PRIME MINISTER ROBERT ABELA, AND HIS MONEY LAUNDERING PAST

The arrest, in Libya, of the career Maltese criminal JOMIC MAATOUK, who was mysteriously allowed to flee his country notwithstanding a conviction and sentence for obtaining explosives, and attempting to obtain poison, has again directed attention at the island nation's Prime Minister, ROBERT ABELA, and his alleged association with, and money laundering for, elements of Maltese organized crime. There have been accusations that Maatouk's escape was facilitated because of his connection to powerful cocaine traffickers that are linked to the country's criminal elite, who have been repeatedly protected from arrest by the PM.

Although he was said to be previously engaged in the private practice of employment law, Abela was involved in the criminal defense of individuals known to be career criminals, and who appear now to be immune from criminal charges in Malta. This was during a period before he became Premier, when he was also advisor to the then-PM, JOSEPH MUSCAT, who now seeks to replace him in that position.

Allegations that he laundered the proceeds of crime for clients at that time persist in local media, and he has never denied those reports. The Maatouk case, which has now highlighted Abela's dark and unexplained past, and which will involve his eventual extradition to Malta, may provide some answers. Maatouk's Maltese wife was found hanged at the venue where he was arrested by local police; we trust that the circumstances of how he ended up in Libya will now see the light of day.

JOSEPH MUSCAT TAKES A PAGE FROM THE DONALD TRUMP PLAYBOOK: PAID PROTESTERS SCHEDULED TO APPEAR AT HIS UPCOMING FIRST COURT APPEARANCE

 

The Man who Would (Again) be King for a Day

When Malta's former Prime Minister, JOSEPH MUSCAT, recently charged with multiple money laundering and corruption counts in the unfolding hospitals sale scandal, appears in court shortly, he is guaranteed to have a huge crowd of rabid PL supporters cheering him on outside the courthouse, and all of them making a very public scene of their support for what has become a cult political figure in Malta. In many ways, he is the country's equivalent of his also-indicted fellow populist politician, Donald Trump. This is true in more ways than you think.  

You see, the real reason for Muscat's confidence that he will have a major crowd of rabble-rousing supporters at his court appearance is that each and every one of those who will be on hand to clap for the Man Who Would Again Be King (return to the premiership in Malta, to regain immunity from prosecution at home, and extradition to the USA) is seeing that they will receive a payment for appearing, albeit ever so briefly on his behalf, as part of his unfolding propaganda political move toward a Return to Power.

Of course, while those of us who have observed Muscat's Rise to Power through PL, and Fall from Grace due to his connection to elements that were responsible for the only political assassination of an investigative journalist in the EU in recent memory, know about his tactics, it is still upsetting to learn that his fans are fully paid for their trouble. Whether this is just another act of illegal political conduct we leave to the Maltese legal scholars, but, like Trump, Muscat's supporters must be paid in full, in advance, we understand, to turn out with their applause and shouting. Let's make very sure that everyone knows it.

BRIBERY CHARGES BROUGHT IN THE UK AGAINST AN ENERGY COMPANY, AND ONE OF ITS DIRECTORS, ALLEGE PAYMENTS TO ANTIGUA MP AND MINISTER ASOT MICHAEL

The UK National Crime Agency (NCA) has announced that it has brought charges for violation of provisions of the Bribery Act, regarding a multi-million Pound scandal, with payments allegedly made to the controversial Antiguan politician and government official, ASOT MICHAEL MP, during the period when he held the portfolio of Minister for Tourism and Economic Development Investment. Charged with Bribing a Foreign Public Official is PETER VIRDEE, also known as HARDIP SINGH; his firm, PV ENERGY LTD. , was charged with Failure to Prevent Bribery of a Public Official.

Michael, whose career has been marked a number of setbacks and removal from appointed office, has been under suspicion of bribery a number of times. He was once, upon his arrival in London, detained for an extensive period of time by British law enforcement, when he was found to be in possession of a number of blank Antigua CBI passports, according to our UK sources. He has been linked to the issuance of passports to transnational criminals, corrupt Politically Exposed persons (PEPs), and national for jurisdictions known to be State Supporters of Terrorism.

The individual and corporate defendants must now appear in Southwark Crown Court on June 20, 2024. Whether Michael will also be charged is unknown.

US BANKS MUST NOW DECLINE TO ACCEPT ANY FURTHER CITIZENSHIP BY INVESTMENT APPLICATION MONEY, UNLESS MEANINGFUL REFORM IS ENACTED BY ALL EAST CARIBBEAN CBI STATES FORTHWITH

Back in 1984, when the first Foreign Minister of St. Kitts & Nevis, William (Billy) Herbert, Jr., created the world's first Citizenship by Investment (CBI) citizenship and passport sales program, he chose to have all payments under the scheme to be in US Dollars ($). While he could not have foreseen the coming of the Money Laundering Control Act of 1986, and the fact that court decisions construing the Act have conferred Extraterritorial Jurisdiction upon all individual and entities, CBI programs wherever located, which all employ USD during any Predicate Act, gives rise to money laundering exposure, Neither St. Kitts nor any of the subsequent four EC states that enacted CBI/CIP have those changed currency requirements. The impact of this fact cannot be underestimated, as foreign individuals and entities whose sole nexus with the US is the Dollar, are now fully subject to American Federal criminal laws.

Fast forward to 2024, where a massive American RICO suit, against St. Kitts and St. Lucia bad actors, alleging fraud and systemic corruption, and claiming four hundred and fifty dollars in damages, has been filed, and among the party defendants is a major Caribbean financial institution, demonstrating the exposure that US banks have to plaintiffs alleging that their willing participation in the acceptance of CBI money, in greenbacks, which they process through the New York banking center, and the dangers that they face for that reason.

One of the principal causes of action in the RICO case is the fact that Chinese compliance companies central to the application process intentionally perform compromised Due Diligence, with the result that Chinese with counterfeit identification are allowed to obtain SKN passports, which is a National Security risk to the United States and other Western companies. US banks therefore cannot guarantee either the Source of Funds or Source of Wealth of the CBI applicants, are in danger by accepting CBI payments.

Unless and until the five EC states that sell CBI products, St. Kitts & Nevis, Antigua & Barbuda, the Commonwealth of Dominica, St. Lucia and Grenada, totally reform their programs now, US banks should:
(1) Hereafter decline to accept any and all Dollar wire transfers, and deposits which appear to be CBI application payments, and redline all senders known to have sent such funds in the past for Enhanced Due Diligence.
(2) Examine all existing correspondent accounts, especially those of all jurisdictions where CBI programs exist, to determine whether they should be terminated, as part of a new De-Risking strategy. These decisions should be made after consultation with outside bank legal counsel, for risk reduction purposes.

The days when CBI money freely flowed through New York are coming to an end, unless reform starts now.

WILL MAJOR CBI LITIGATION IN THE EAST CARIBBEAN SPEED THE REFORM OR DEMISE OF THE EUROPEAN UNION'S ONLY REMAINING ROGUE PASSPORT SALES JURISDICTION?

If you followed this week's events, you know that a groundbreaking federal Racketeering Influenced Corrupt Organization lawsuit was filed in the United States, asserting that the Citizenship by Investment (CBI/CIP) passport & citizenship sales schemes in both the Federation of St. Kitts & Nevis, and in St. Lucia, are illegally administered and operated, and that rampant bribes and kickbacks occur in those programs. The plaintiffs, who are seeking both actual and treble damages for their substantial losses, have demanded four hundred and fifty million dollars in their Prayer for Relief. If the verdicts handed down in prior RICO jury trials are any indication, and given the quality of evidence seen at this early stage, they may very well succeed.

 Many experienced legal observers of the economic passport sales industry believe that the lawsuit will compel the five East Caribbean States, who have been uncooperative to date even when presented with clear and convincing evidence of widespread corruption and illegal conduct, into instituting a number of comprehensive reforms forthwith, to enable their programs to survive. When legally and properly supervised, and periodically audited, CBI passport programs can provide a valuable service to legitimate applicants. If meaningful and complete reform is conducted, CBI programs lawfully run by the East Caribbean States would also provide substantial economic benefits to the citizens of the nations that offer them.

Within the Members of the European Union,  a similar situation exists in the sole remaining EU state that offers CBI products, the Republic of Malta. The European Commission, completely unhappy with the unlawful and corrupt manner in which Maltese leaders have allowed the program to operate, have initiated legal proceedings to terminate, with prejudice, Malta's CBI program, an action which could eventually result in the program's demise.

Now, with the raised public and international governmental awareness anticipated about CBIs ineffective due diligence, discounted pricing, and the granting of citizenship & passports to clearly ineligible, and even criminal elements, all highlighted by this major new lawsuit, Malta may soon find itself facing tough choices, if it truly wants to preserve its CBI program. it must either totally revamp how it is administered, including the use of professional career civil servants, rather than unqualified political appointees. It must also use internationally known external compliance teams to vet the applicants, and corruption must be eliminated, at all phases of the process. Only if this occurs, can the program survive.

As the American CBI case winds its way through the court system, with what we believe will be close monitoring from the European Commission, the pressure on Malta to reform its program, to save it from termination, will increase. Pressure from the passport sales industry should also be applied, if those companies desire to remain in business. Malta's CBI program is the master of its own fate, and we shall see whether senior officials in government there have the wisdom to bring sorely needed reform, so that the program survives.