Wednesday, November 11, 2015

VIKTOR BOUT APPEALS DENIAL OF HIS MOTION FOR A NEW TRIAL BASED UPON NEWLY-DISCOVERED EVIDENCE


Viktor Bout
Alexey Tarasov, the Russian-American attorney representing Viktor Bout, has filed a notice of Appeal from the trial judge's order denying his motion for a new trial, based upon newly-discovered evidence. Tarasov had previously announced his intention to do so, on behalf of his client. Readers who are interested in the grounds that were asserted by Bout, in seeking a new trial, are directed to review the prior articles appearing on this blog, as they cover the issues in detail.

The case has been surrounded by controversy, including claims of entrapment, and unlawful targeting of the defendant, who had ties to the American intelligence community, as well as to arms trafficking in the developing world. His original conviction was affirmed by the Second Circuit Court of Appeals.

TODAY IS REMEMBRANCE DAY/VETERANS DAY




Those who forget the lessons of history are doomed to repeat it. Take a moment to reflect and to remember.

Tuesday, November 10, 2015

BANK OF NOVA SCOTIA SIGNS CONSENT AGREEMENT WITH NY FED AND NY DEPT. FIN. SVCES.


The Bank of Nova Scotia, through both its Canadian headquarters, and its New York agency, has executed what amounts to a Consent Agreement with the New York branch of the Federal Reserve Bank, and the New York State Department of Financial Services (DFS), to correct deficiencies in the bank's BSA/AML compliance program, Customer Due Diligence. OFAC compliance, and SAR monitoring and reporting.

Readers who wish to review the complete text of the Agreement, can access it here*. Unlike most other agreements with the Fed and NYDFS, there was no monetary penalty levied upon the bank.
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*http://www.federalreserve.gov/newsevents/press/enforcement/enf20151110a1.pdf

GARY LUNDGREN INTERVIEWING HOOKERS FOR HIS TRUMP HOTEL SUITE SCHEME


Trump's case against Gary Lundgren, which demands millions of dollars in damages, regarding Lundgren's illegal taking of control of management, at Trump Ocean Club International Hotel & Tower, may now add an additional claim, because of Lundgren's intent to walk on the wild side. Gary Lundgren, who is the owner of the largest number of units in the complex, is currently conducting interviews, of Colombian hookers, for his new Trump project, which he has apparently patterned after similar arrangements that exist in certain Hong Kong hotels. If Gary Lundgren is obsessed about anything in life, it is about sex, for he has the record to prove it, and now he wants to make money out of it. His wife, whom he has offered up to be the manager of the Trump, is to be the supervisor/madam of the venture.

Lundgren intends to offer visiting businessmen exclusive service, when staying at the suites at the Trump that he controls, including full-time access to prostitutes, who will also serve as hostesses to the individual guests of Lundgren's suites, which he calls lofts. Though rarely enforced, the laws against prostitution remain on the books in the Republic of Panama. Lundgen's arrogance continues to surprise businessmen in Panama, many of whom believe that the case involving his illegal actions at the Trump Ocean Club will end his sordid business career in Panama.


It is common knowledge that the Organization has an established policy of prohibiting prostitutes in its signature hotels and resorts, so this new information is sure to be poorly received by Trump, and his senior management. Certainly, the introduction of a criminal enterprise (Gary Lundgren is to receive a portion of the hookers' income) is a violation of condominium rules & regulations, as well as several other Panamanian laws.

Donald Trump is a candidate for the nomination, by the Republican Party, to be the candidate for President of the United States, and Gary Lundgren is seeking to create a program, at a Trump landmark in Panama, that could result in serious reputation damage to his campaign. Look for Lundgren's pimping project at the Trump to be dead on arrival. As soon as his advisers hear about it, they will kill it permanently.




Monday, November 9, 2015

RAISE COUNTRY RISK ON HAITI TO THE HIGHEST LEVEL


If you have been following Haitian politics, you know that trouble is coming. The ongoing presidential election process in the Republic, reportedly again fatally flawed with election fraud, has a very good chance of resulting a popular explosion that will threaten domestic stability, and seriously damage a fragile and frail economy.

The candidate who is the designated favorite of the outgoing president is said to have received the largest popular vote in the election, but still insufficient to carry the day, which means that there will be a runoff election. The problem is, most observers believe that many of the votes cast for the front runner were fraudulent, and that he has absolutely no place in the runoff.

Is is feared that the blow back from the rampant election fraud will result in a chaotic domestic situation. Indeed, some seasoned observers of the Haitian political scene, worry that widespread violence will break out, and that ultimately, President Martelly will not serve out his term. Yes, it is that serious.

If Haiti reverts, once again, to the cycle of violence, there is no place for any capital investment, financial exposure, or even international trade. When you must worry about being able to visit a local bank, without being at risk for robbery or attack in the street, you know you have no business operating in that country, and if the situation deteriorates, as is expected, it will happen .

It has been my experience to have worked on bank compliance projects in Haiti, lectured at conferences there, and worked with government agencies in the capital, and I only wish Haiti the best in the future, but this current threat to stability unfortunately compels me to raise Country Risk on the Republic of Haiti to the highest level, which is a total bar to any financial, trade, or commercial, transactions, and to incurring any financial exposure, until we see a post-election normalcy established, with a government that the people are happy with.      

Sunday, November 8, 2015

GARY LUNDGREN, FACING CLAIMS FROM TRUMP AND OTHERS, SHUTS DOWN IN PANAMA AND WASHINGTON


The Alaskan fraudster operating in anything-goes Panama, Gary James Lundgren, reeling from the publicity generated by the high-profile case against him, filed by the Trump Organization, has begun closing down his dodgy operations. Lundgren, who has obviously tired of evading all the angry investors whom he has stopped paying an 8% per month return to, faces an uncertain future, due to multiple investigations reportedly pending against him. He refuses to personally meet clients, for fear that he will suffer physical harm at the hands of clients who have threatened him; he takes various, circuitous, routes to his office each day, and has increased security there.

In the Republic of Panama, his securities company, an unlicensed Panamanian branch of his US company, Interpacific Investors Services, has been ordered closed by the Government of Panama. In the United States, his business in Washington State is transferring all its existing clients to a national securities firm, and closing up its broker-dealer operations, as verified by a press release, making the announcement, though the company receiving this business may want to reexamine the situation.

The steep decline in new tenants, coming into Panama, due to the change in economic activity, and the public perception of a major increase in street crime, has resulted in a large number of vacant condominiums that he controls, meaning that his cash flow has been severely reduced. He has a number of civil suits pending against him in the Republic of Panama, and some of his victims, who allege he is guilty of sexual battery, are exploring their legal options.

Will the United States request the extradition of Mr. Lundgren, for securities violations, or will Panama do the honors, for the Petaquilla Mine scandal ? We cannot say, but his problems have multiplied exponentially in 2015.






MONEY LAUNDERING THROUGH LITIGATION FINANCE


Innovative money launderers are constantly on alert for new, and safe, methods of cleaning their clients' proceeds of crime, and of making a return on their "investment" in the process. It was only when a drug-laden smuggling vessel was seized off the coast of California, that US law enforcement learned about the abuse of Life Settlements, the secondary market for life insurance policies, by an insurance agent who was a laundryman in Colombia; we often learn too late about new avenues to launder illicit profits.

The proliferation of litigation financing, also known as litigation funding, in high-stakes civil lawsuits in the United States, should concern trial lawyers, not for ethical reasons, though there are valid issues, but because outside financing of their expensive major cases might be coming from a source of funds that they definitely do not want to accept; money launderers.

Litigation financing occurs in major products liability, personal injury, or several other types of lawsuits, especially where the defendant, or its insurer, has a deep pocket to defend the case. Depositions, pretrial discovery, motions, experts, consultants, investigations, all cost money, and some defense lawyers try to bankrupt litigants, through years of litigation, to force settlements, or even dismissal of cases against their clients.

It is logical that clients with limited means would seek out funding sources, to obtain non-recourse advance funding of pretrial, and trial, litigation costs. the problem is that the law has not yet caught up with this emerging field, and there is no requirement that the Source of Funds, or Beneficial Owner, behind such funding companies be disclosed, or obtained through due diligence. Since many offshore hedge funds are getting involved, why not domicile the "lenders" of the funds, to the bogus litigation finance company overseas as well. The lawyers, happy that their costs will be paid in advance, will not examine the golden goose.


Any good money launderer worth his salt could create a company that looks like a legitimate business, and borrows money, to lend out to law firms, for their clients' litigation finance needs. In truth and in fact, the captive litigation finance company is a shell, and it "borrows" funds from other shell companies owned and controlled by the money launderer, and funnels criminal proceeds into the lawsuit. After settlement of the case, a check, or wire transfer, from the winner's law firm will rarely, if ever, be subject to any regulatory, or law enforcement, scrutiny.

Only if the law firms conduct enhanced due diligence, in advance, will the wheat be separated from the straw, and illegitimate finding sources be unmasked, and refused. One wonders how many major civil cases have already been funded with drug profits.


DEUTSCHE BANK: THE REGULATORS FINALLY GET ONE RIGHT ON SANCTIONS VIOLATIONS


We know that fining international banks for sanctions violations is not an effective deterrent, even when the civil fines & penalties are in the multi-million dollar range, for those in command see such costs as the cost of doing business, but I have seen one sanctions violations case recently, worthy of mention. Inasmuch as fines alone do not stop the big banks, it is much more effective to also hit back at the individuals themselves who are responsible for the organized sanctions violations. Make sure that the people who actually evaded sanctions are terminated, as publicly as possible.

The New York case, where a whopping $258m fine imposed upon Deutsche Bank AG, for doing business with blacklisted countries, also required the bank to discharge six of the bad actors. Additional players in the sanctions evasion process has already left the bank, and three others transferred, and banned from any duties involving the bank's American operations.

You have got to tip your hat the the New York State Department of Financial Services, for it has been at the forefront of effective enforcement of sanctions laws; it reportedly will receive $200m of the fine payment, at in my humble opinion, it is well earned.



I have a suggestion; name, shame and publish the photographs of all the individuals involved in sanctions evasion, Superintendent Albanese, so that bankers worldwide get the message, loud & clear. Bankers are still constantly accessing my article containing the photographs of BNP Paribas officers who were terminated in its scandal. Out all these financial thugs, please.

Friday, November 6, 2015

DUNDEE BANK - OPERATED ILLEGALLY BY FRAUDSTERS - ABRUPTLY CLEANED OUT WHEN SUIT FILED


Grand Cayman's Dundee Merchant Bank,* though ordered liquidated years ago, and which was operating illegally, was abruptly cleaned out, and its computers and bank records removed post haste yesterday, when the news broke that a major civil suit had been filed against it. The bank has been a base for a $450m trading fraud, perpetrated by the Cayman Gang of Four, a quartet of financial scoundrels who stole from Canadian and American retirees and pensioners.

A review of Cayman Islands public records showed that no liquidation, nor receivership, nor any other permitted class of dissolution of the bank, has ever been initiated, let alone completed, notwithstanding that Canadian regulators has ordered it closed a long time ago. The bank has only a Class B banking license, which requires a full-service financial institution as a parent organization, and Canada's Dundee Corporation had sold off its banking arm years ago. Financial media, and even reputable reference materials, have listed Dundee as "in liquidation" for years, meaning that this disinformation was deliberately leaked to the financial press.

The bank had never been liquidated, though Dundee Corporation has claimed that it had completed the necessary actions, and handed off the liquidation to bank management, headed by President Derek Buntain. Mr. Buntain is missing, and is believed to be hiding somewhere in Canada's Atlantic Provinces, possibly Prince Edward Island, where his family resides.

Dundee President Buntain

Witnesses stated that Sharon Lexa Lamb, the Senior Vice President of Dundee Bank, ordered the bank's small Grand Cayman offices stripped, after she was notified by a staff member at the Grand Court of the Cayman Islands that a Statement of Claim had been filed, against her, and the bank, alleging massive breaches of fiduciary duty to account holders**.

There are three unanswered questions that deserve attention:

(1) If the bank was in clear violation of Cayman banking laws, why was it allowed to remain in operation by CIMA, the Cayman Islands Monetary Authority, the relevant government agency charged with regulating the financial sector ? No liquidation was filed, yet media was declaring it as fact. Who was guilty of regulator malpractice at CIMA, and should they not be disciplined for this abject failure ? Also, why didn't CIMA catch Dundee's parent's sale ? Is this not gross negligence ?



(2) If Dundee Corporation did, as it claims, sign off on the liquidation, why was there never any on-site inspection and report, to confirm that it actually was accomplished ? That is basic due diligence, and the fact that a document was issued, under the bank's name, recently, showing Dundee Corporation's Toronto address for Dundee Merchant Bank, in a mailing to clients, suggests that it knew, or should have known, that the bank was still in operation.



(3) Where is Canada's financial regulator, the National Bank of Canada, in all this ? There is no publicly-available document that tells consumers and investors the details of the ordered liquidation, and the authority through which it was ordered. Investors were blindly following word of mouth. Should we not have regulatory filing transparency, especially regarding high-risk, and non-CDIC/FDIC, financial institutions located in offshore financial centers ?



One wonders where the bank's computers, and books & records are. Perhaps someone at the Royal Cayman Islands Police Service might want to step in here, and pay Ms. Lamb, and the rest of the Gang of Four,  a visit.



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* The bank was also trading under the name of Dundee Bank.
** This case shall be covered in a subsequent article.  

LEADER OF CAYMAN GANG OF FOUR THREATENS BLIND INVESTOR WHO ASKED FOR HIS FUNDS


The Cayman Gang of Four are showing signs of desperation lately. A 90-year old American investor, who is blind and disabled, was threatened by the group's leader, Sharon Lexa Lamb, when he again requested that his investment account be returned to him. Lamb told the client that, should he continue to ask for his money, she would turn over all his information to the Internal Revenue Service, and that the end result would be a Federal prison term for tax evasion.

Is there nothing the Gang of Four will not do to hold on to the estimated $450m they have stolen from Canadian and American investors ? This is one of the most despicable things they have done to date. Lamb had previously delayed refunding the investor his money, by placating him with the story that B & C Capital had to sell off some stock, and then he would receive his $2m, in full. When that lie ran out, she threatened the investors with the dire consequences stated above.

The investor, who has no liability for undeclared income, has decided to proceed with litigation, but, in my humble opinion, no less than a substantial prison time, in a Federal Prison in the United States, is in order, for Sharon Lexa Lamb, as well as the other members of the Cayman Gang of Four, Derek Buntain, Fernando Mota Mendez, and the fugitive, Ryan Bateman.
Lamb, Bateman, Buntain

Thursday, November 5, 2015

VIKTOR BOUT TO APPEAL THE DENIAL OF HIS MOTION FOR A NEW TRIAL

                                                       

Alexey Tarasov, Viktor Bout's Russian-American attorney, has stated that he will be appealing the recent decision, entered by Bout's trial judge, to deny his client's motion for a new trial, which was filed upon the grounds of newly-discovered evidence. We have previously reported on that opinion on this blog. *

A spokesman for the Foreign Ministry of Russia, in commenting upon the case this week, stated that the case was "fabricated by US special services." The United Nations recently removed sanctions in place against Bout, and others, in connection with conflicts in West Africa, and Tarasov asked the Court to take Judicial Notice of that action.

The case will now go up on appeal, once more, to the Second Circuit, which previously denied his original appeal, and affirmed his conviction. Public opinion in Russia strongly believes that the case was brought for political reasons, that Bout is innocent, and that he was entrapped. He was convicted of attempting to sell arms to the individuals who said they were affiliated with the FARC, which he reportedly understood were intended to kill Americans in Colombia.
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* Federal Judge denies Viktor Bout a New Trial

TRUMP SEEKS $75m IN DAMAGES AGAINST GARY LUNDGREN AND OTHER TRUMP OCEAN CLUB DIRECTORS





                   
     
The Trump Organization has brought a claim against the Directors of Panama's Trump Ocean Club, which is led by the American businessman, Gary Lundgren, for $75m, for wrongfully terminating Trump's management agreement with the condominium association. Lundgren is seeking to have his wife take over management of the condominium, and collect the maintenance fees, though she has no training or experience in building management.The case was reportedly brought before a type of arbitration, and is not public, but details were leaked to American  media, and Trump's New York attorney confirmed the filing. The complaint also alleges that Lundgren has engaged in a wide variety of illegal activity in Panama.

Lundgren and Perez

Gary Lundgren, whose controversial career has been the subject of much media attention, is said to be the owner of the largest number of properties in Trump Ocean Club, allegedly acquired with laundered Colombian narcotics profits, and millions in cash given to him, by the convicted Colombian Ponzi schemer, David Eduardo Helmut Murcia Guzmán, which he later stole, when Murcia was extradited. Witnesses have seen Lundgren present for deposit, at Panamanian banks, $15-16m in cash, in garbage bags, still wet from covert fast-boat transport from Colombia.

 Lundgren allegedly met Murcia through drug cartel kingpins in Medellín,  who are related to Lundgren's wife, Griselda Pérez. Murcia is reported to have laundered two billion dollars, in FARC narco-profits, in Panama.

Griselda Pérez
Lundgren's checkered past, which includes allegations of money laundering of narcotics profits, his status as a known sexual predator in the US and in Panama, and his theft of Panama real estate, owned by expats from North America and Europe, and his failure to pay accrued interest to his investors, should have disqualified him from serving as chairman of the Board of Directors of any public company. Lundgren has also been said to have acquired bonds, issued by the corporation that developed the project, Newland, through opaque circumstances.

Lundgren's longtime association with Panamanian attorney Ismael Gerli has led to speculation that Gerli had a role in advising Lundgren in his mysterious acquisition of the bonds,  and acquiring Trump Ocean Club condominium units, for cash. Some Panama observers claim that Lundgren covets the casino license at the building, and also wants to be the recipient of the monthly condominium maintenance payments paid by the unit owners.

Ismael Gerli

We shall keep our readers advised of this developing story as it unfolds.


Tuesday, November 3, 2015

THE PANAMANIAN JUDICIARY REFUSES TO HONOR BOGUS BEARER SHARE TRANSFERS



Many judges in the Republic of Panama are now attempting, through their rulings, to suppress the country's unspeakable wave of bearer share fraud. Many US, Canadian & EU nationals have found that their trusted attorneys have fraudulently transferred ownership of the bearer share corporations which own their real estate, and later illegally sold the stolen properly to a bona fide purchaser, free & clear of any claims.  Many of Panama's hard core of corrupt and greedy lawyers bribe a local Notary Public to attest to  forged endorsements of client's bearer shares, and then sell off the real estate to unsuspecting buyers.

Here is how Panamanian judges refuse to be part of the fraud; They want all the documents that one would ordinarily have at a closing, where realty is transferred:

(1) They demand that a copy of the contract for purchase and sale be provided to the Court.
(2) They require a Bill of Sale, signed by the seller.
(3) They ask for an executed Assignment of Corporate Assets.

Without all the above, the judges refuse to adopt any transfers of shares of stock in and to bearer-share corporations. While corrupt lawyers generally can easily find a dirty notary to assist them, most of these
bad actors do not have a complete set of the above documents, as they are often very poor lawyers, short on legal skills, and long on greed. Attention to detail ? Not these crooks; they often do not know how to draft a contract, and rely upon forms given to them by others.

Some judges are now even refusing to accept the time-honored principle of Panamanian law, where a BFP (bona fide purchaser for value) is allowed to retain even property stolen by the prior seller. These brave members of the judiciary are hopefully, the shape of things to come, for Panama sorely needs reform of its courts, lawyers, and even some judges. 

WHO FRAMED VLADIMIR KOKOREV FOR MONEY LAUNDERING ?

Vladimir Kokorev, with one of his Panama attorneys 
It would appear that Valdimir Kokorev, the Russian businessman who operated in Africa, including Equatorial Guinea, was artfully framed, and the money laundering allegations, which the Spanish press has accused him of, have no basis in fact. We have begun an investigation of the curious circumstances surrounding the matter, and the hidden agenda of the parties who are orchestrating the vendetta against Kokorev.

Here is what we know so far:

(1) Vladimir Kokorev, and the rest of the Kokorev family, are not wanted on money laundering charges, but on the equivalent of material witness warrants, for questioning. The Government of Spain, in a heavy-handed manner,  has sought their extradition, instead of contacting them, and arranging for their testimony, as their location was well known. Causing their arrest, in a highly public manner, obviously had political implications, which we intend to explore. Remember, this matter involves real estate purchases that occurred several years ago; why are they coming up now ?

(2) The back story is far more sinister than any money laundering case. According to reliable sources, certain powerful financial interests in Spain, who had previously enjoyed taking lucrative profits from exploiting Equatorial Guinea's natural resources, want the country's current leader, President Teodoro Obiang, out of power, and replaced by a president who will cooperate with those interests, and restart the flow of cash to them.

(3) Allegations of massive corruption of the Obiang family, placed in major media outlets by the Spanish special interests, has dominated news about Equatorial Guinea recently. This appear to be the method through which those interests believe they can remove Obiang, through the airing of multiple scandals.

(4) Money laundering charges against Kokorev, claiming that he laundered money for Obiang, by purchasing real estate in Spain, provides fuel for the press, and casts Obiang in a negative light. The acquisition of Spanish realty, according to the Kokorev family, was for their own use, and absolutely not bought for the first family of Equatorial Guinea.

Ismael Gerli
(5) The only witness against Vladimir Kokorev is Ismael Gerli, his former Panama attorney, who actually traveled to court in the Canary Islands, to testify against his clients, though the laws regarding admissibility of such testimony causes great concern, because of the existence of the attorney-client privilege. Kokorev denies that Gerli has any evidence or information implicating him for money laundering, and asserts that Gerli sought to extort money from him, has over billed Kokorev for years, for legal services, and stole a condominium apartment from Kokorev, by fraudulently transferring ownership to bearer shares of a corporation that owned the property.

 Gerli was formerly associated with the American fraudster, Gary James Lundgren*, who illegally acquired much of his wealth through the same type of illegal share transfers that Gerli reportedly engaged in. Attorney Gerli's lack of credibility is certainly a major issue. He is presently being sued by Kokorev in a court in the Republic of Panama.

Gary Lundgren
(6) Spanish newspaper articles that created the story about Vladimir Kokorev's money laundering, were later held, by a court in Moscow, to have committed libel, and the offending articles ordered removed. The journalist who authored the story was reportedly fired, and the Spanish Government at the time officially stated that it had not pending investigation against Kokorev. Why now, we ask ?

We are just now scratching the surface of this matter; rest assured that the identities of the Spanish financial interests will appear here in subsequent articles, as well as further details of their campaign against Vladimir Kokorev, and President Teodoro Obiang.
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*  Panama expat, Gary James Lundgren has been labeled, in the press, the "Bill Cosby of Panama, " due to his sexual predator history, in the United States, as well as in Panama. 

Monday, November 2, 2015

CAN PANAMA FIX ITS LAWYER PROBLEM ?


If you have spent any time in the legal system in the Republic of Panama, you are painfully aware of the issues. The large law firms, and the successful small firms, with their US-educated lawyers, are the place to go, if you are in need of legal advice, or a litigator. Why ? Because they generally run a tight shop, and you may pay hefty fees, but you do get effective representation.

However, if you go to the third- and fourth-tier lawyers, you are taking an immense risk, because you may not only fail t get your money's worth, you may fall prey to lawyers whose goal is to cheat their foreign clients, and insure that any claims that you may have become a casualty of corruption.

Here's the problem in a nutshell:

(1) Panama subscribes to the diploma privilege, meaning that graduation from law school entitled the individual to admission to the bar; there's no bar examination. The Supreme Court of Justice admits all graduates.

(2) The disciplinary system is non-existent. Attorneys who serve prison terms can actually pick up the pieces, and return to the practice of law when released ! This has to change.

(3) Some individuals, due to Panama's rampant corruption can actually buy a law degree, without attending a single day in law school. No wonder many of them are clueless, when it comes to the rules of procedure and evidence.

(4) Overcharging foreign nationals, in billing, is the rule rather than the exception, with this type of lawyer.

(5) Taking money from opposing lawyers, to delay cases indefinitely, fail to attend hearings or make required filings of pleadings, happens more often than you would expect. Corruption among those lawyers is one of the largest single impediments to obtaining justice in Panama; I know this from personal experience.

Please do not get me wrong; there are plenty of ethical lawyers in Panama, as well as good prosecutors and judges, it is just that the bad apples are so numerous, that attorneys in Panama have a poor reputation, in general, due to the bad actors.

Can the Government of Panama (1) require bar exams, (2) make attendance mandatory to obtain a law degree, (3) beef up the attorney disciplinary process, and (4) crack down on corruption ? We hope so, for otherwise, Panama will continue to remain high, when it comes to Country Risk assessments.