Pandora Papers
mickeyrat
Posts: 38,589
Hundreds of world leaders, powerful politicians, billionaires, celebrities, religious leaders and drug dealers have been hiding their investments in mansions, exclusive beachfront property, yachts and other assets for the past quarter-century, according to a review of nearly 12 million files obtained from 14 firms located around the world.
The report released Sunday by the International Consortium of Investigative Journalists involved 600 journalists from 150 media outlets in 117 countries. It's being dubbed the “Pandora Papers" because the findings shed light on the previously hidden dealings of the elite and the corrupt, and how they have used offshore accounts to shield assets collectively worth trillions of dollars.
The more than 330 current and former politicians identified as beneficiaries of the secret accounts include Jordan’s King Abdullah II, former U.K. Prime Minister Tony Blair, Czech Republic Prime Minister Andrej Babis, Kenyan President Uhuru Kenyatta, Ecuador's President Guillermo Lasso, and associates of both Pakistani Prime Minister Imran Khan and Russian President Vladimir Putin.
The billionaires called out in the report include Turkish construction mogul Erman Ilicak and Robert T. Brockman, the former CEO of software maker Reynolds & Reynolds.
Many of the accounts were designed to evade taxes and conceal assets for other shady reasons, according to the report.
“The new data leak must be a wake-up call,” said Sven Giegold, a Green party lawmaker in the European Parliament. “Global tax evasion fuels global inequality. We need to expand and sharpen the countermeasures now.”
Oxfam International, a British consortium of charities, applauded the Pandora Papers for exposing brazen examples of greed that deprived countries of tax revenue that could be used to finance programs and projects for the greater good.
“This is where our missing hospitals are," Oxfam said in a statement. “This is where the pay-packets sit of all the extra teachers and firefighters and public servants we need. Whenever a politician or business leader claims there is ‘no money’ to pay for climate damage and innovation, for more and better jobs, for a fair post-COVID recovery, for more overseas aid, they know where to look."
The Pandora Papers are a follow-up to a similar project released in 2016 called the “Panama Papers" compiled by the same journalistic group.
The latest bombshell is even more expansive, porting through nearly 3 terabytes of data — the equivalent of roughly 750,000 photos on a smartphone — leaked from 14 different service providers doing business in 38 different jurisdictions in the world. The records date back to the 1970s, but most of the files span from 1996 to 2020.
In contrast, the Panama Papers culled through 2.6 terabytes of data leaked by one now-defunct law firm called Mossack Fonseca that was located in the country that inspired that project's nickname.
The latest investigation dug into accounts registered in familiar offshore havens, including the British Virgin Islands, Seychelles, Hong Kong and Belize. But some of the secret accounts were also scattered around in trusts set up in the U.S., including 81 in South Dakota and 37 in Florida.
Some of the initial findings released Sunday painted a sordid picture of the prominent people involved.
For instance, the investigation found advisers helped King Abdullah II of Jordan set up at least three dozen shell companies from 1995 to 2017, helping the monarch buy 14 homes worth more than $106 million in the U.S. and the U.K. One was a $23 million California ocean-view property bought in 2017 through a British Virgin Islands company. The advisers were identified as an English accountant in Switzerland and lawyers in the British Virgin Islands.
There was no immediate comment from Jordan’s Royal Palace.
The details are an embarrassing blow to Abdullah, whose government was engulfed in scandal this year when his half brother, former Crown Prince Hamzah, accused the “ruling system” of corruption and incompetence. The king claimed he was the victim of a “malicious plot,” placed his half brother under house arrest and put two former close aides on trial.
U.K attorneys for Abdullah said he isn’t required to pay taxes under his country’s law and hasn’t misused public funds, adding that there are security and privacy reasons for him to have holdings through offshore companies, according to the report. The attorneys also said most of the companies and properties are not connected to the king or no longer exist, though they declined to provide details.
Blair, U.K. prime minister from 1997 to 2007, became the owner of an $8.8 million Victorian building in 2017 by buying a British Virgin Islands company that held the property, and the building now hosts the law firm of his wife, Cherie Blair, according to the the investigation. The two bought the company from the family of Bahrain’s industry and tourism minister, Zayed bin Rashid al-Zayani. Buying the company shares instead of the London building saved the Blairs more than $400,000 in property taxes, the investigation found.
The Blairs and the al-Zayanis both said they didn’t initially know the other party was involved in the deal, the probe found. Cherie Blair said her husband wasn’t involved in the purchase, which she said was meant to bring “the company and the building back into the U.K. tax and regulatory regime.” She also said she did not want to own a British Virgin Islands company and that the “seller for their own purposes only wanted to sell the company,” which is now closed.
A lawyer for the al-Zayanis said they complied with U.K. laws.
Khan, the Pakistani prime minister, is not accused of any wrongdoing. But members of his inner circle, including Finance Minister Shaukat Fayaz Ahmed Tarin, are accused of hiding millions of dollars in wealth in secret companies or trusts, according to the journalists' findings.
In a tweet, Khan vowed to recover the “ill-gotten gains” and said his government will look into all citizens mentioned in the documents and take action, if needed.
The consortium of journalists revealed Putin's image-maker and chief executive of Russia's leading TV station, Konstantin Ernst, got a discount to buy and develop Soviet-era cinemas and surrounding property in Moscow after he directed the 2014 Winter Olympics in Sochi. Ernst told the organization the deal wasn't secret and denied suggestions he was given special treatment.
In 2009, Czech Prime Minister Andrej Babis put $22 million into shell companies to buy a chateau property in a hilltop village in Mougins, France, near Cannes, the investigation found. The shell companies and the chateau were not disclosed in Babis’ required asset declarations, according to documents obtained by the journalism group’s Czech partner, Investigace.cz.
A real estate group owned indirectly by Babis bought the Monaco company that owned the chateau in 2018, the probe found.
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Not today Sir, Probably not tomorrow.............................................. bayfront arena st. pete '94
you're finally here and I'm a mess................................................... nationwide arena columbus '10
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A massive trove of private financial records shared with The Washington Post exposes vast reaches of the secretive offshore system used to hide billions of dollars from tax authorities, creditors, criminal investigators and — in 14 cases involving current country leaders — citizens around the world.
The revelations include more than $100 million spent by King Abdullah II of Jordan on luxury homes in Malibu, Calif., and other locations; millions of dollars in property and cash secretly owned by the leaders of the Czech Republic, Kenya, Ecuador and other countries; and a waterfront home in Monaco acquired by a Russian woman who gained considerable wealth after she reportedly had a child with Russian President Vladimir Putin.
Other disclosures hit closer to home for U.S. officials and other Western leaders who frequently condemn smaller countries whose permissive banking systems have been exploited for decades by looters of assets and launderers of dirty money.
The files provide substantial new evidence, for example, that South Dakota now rivals notoriously opaque jurisdictions in Europe and the Caribbean in financial secrecy. Tens of millions of dollars from outside the United States are now sheltered by trust companies in Sioux Falls, some of it tied to people and companies accused of human rights abuses and other wrongdoing.
The details are contained in more than 11.9 million financial records that were obtained by the International Consortium of Investigative Journalists (ICIJ) and examined by The Post and other partner news organizations. The files include private emails, secret spreadsheets, clandestine contracts and other records that unlock otherwise impenetrable financial schemes and identify the individuals behind them.
The trove, dubbed the Pandora Papers, exceeds the dimensions of the leak that was at the center of the Panama Papers investigation five years ago. That data was drawn from a single law firm, but the new material encompasses records from 14 separate financial-services entities operating in countries and territories including Switzerland, Singapore, Cyprus, Belize and the British Virgin Islands.
The files detail more than 29,000 offshore accounts, more than double the number identified in the Panama Papers. Among the account owners are more than 130 people listed as billionaires by Forbes magazine and more than 330 public officials in more than 90 countries and territories, twice the number found in the Panama documents.
Key questions to better understand the offshore system
What is the offshore system?
The offshore financial system offers privacy, which provides an opportunity to hide assets from authorities, creditors and other claimants, as well as from public scrutiny.
Why is it called “offshore” finance?
This system is known as offshore finance because the countries that popularized this method of sheltering wealth were often in island or coastal locations, but today “offshore” signifies anywhere that is not a customer’s country of residence.
Is this legal?
Offshore providers are typically established according to the laws of the country where they are located. But some clients have used offshore services in ways that are not legal.
Read more
Read key takeaways, about the investigation and more questions and answers about the Pandora Papers.
As a result, the Pandora Papers allow for the most comprehensive accounting to date of a parallel financial universe whose corrosive effects can span generations — draining significant sums from government treasuries, worsening wealth disparities, and shielding the riches of those who cheat and steal while impeding authorities and victims in their efforts to find or recover hidden assets.
“The offshore financial system is a problem that should concern every law-abiding person around the world,” said Sherine Ebadi, a former FBI officer who served as lead agent on dozens of financial-crimes cases.
Ebadi pointed to the role that offshore accounts and asset-shielding trusts play in drug trafficking, ransomware attacks, arms trading and other crimes. "These systems don't just allow tax cheats to avoid paying their fair share. They undermine the fabric of a good society,” said Ebadi, now an associate managing director at Kroll, a corporate investigations and consulting firm.
continues.....
Not today Sir, Probably not tomorrow.............................................. bayfront arena st. pete '94
you're finally here and I'm a mess................................................... nationwide arena columbus '10
memories like fingerprints are slowly raising.................................... first niagara center buffalo '13
another man ..... moved by sleight of hand...................................... joe louis arena detroit '14
Not today Sir, Probably not tomorrow.............................................. bayfront arena st. pete '94
you're finally here and I'm a mess................................................... nationwide arena columbus '10
memories like fingerprints are slowly raising.................................... first niagara center buffalo '13
another man ..... moved by sleight of hand...................................... joe louis arena detroit '14
There are no kings inside the gates of eden
The files provide substantial new evidence, for example, that South Dakota now rivals notoriously opaque jurisdictions in Europe and the Caribbean in financial secrecy. Tens of millions of dollars from outside the United States are now sheltered by trust companies in Sioux Falls, some of it tied to people and companies accused of human rights abuses and other wrongdoing.
Libtardaplorable©. And proud of it.
Brilliantati©
There are no kings inside the gates of eden
I think you meant ACTUAL. Or if, they don't have one - Non-Existent. But, I'm not sure how you have a mythical one.
Not today Sir, Probably not tomorrow.............................................. bayfront arena st. pete '94
you're finally here and I'm a mess................................................... nationwide arena columbus '10
memories like fingerprints are slowly raising.................................... first niagara center buffalo '13
another man ..... moved by sleight of hand...................................... joe louis arena detroit '14
There are no kings inside the gates of eden
LONDON (AP) — Transparency advocates are calling on Britain to tighten the country's defenses against money laundering and tax avoidance after a massive leak of financial data showed how London is a key destination of choice for some of the world’s richest and most powerful people to conceal their cash.
The cache of almost 12 million files shows how wealthy people around the world reportedly set up offshore companies to buy property and avoid taxes.
Foreign individuals identified as beneficiaries of these types of offshore accounts in London include Jordanian King Abdullah II, Azerbaijan’s President Ilham Aliyev and associates of Pakistani Prime Minister Imran Khan. Abdullah has denied any impropriety and Khan tweeted that his government would investigate anyone mentioned and take appropriate action if wrongdoing is found. Aliyev hasn't commented.
The leaked financial data, dubbed the “Pandora Papers,” was published Sunday by the International Consortium of Investigative Journalists and its media partners, including Britain’s Guardian newspaper and the BBC.
Though the purchases are legal under British law, they highlight the complicated — and often anonymous — financial practices wealthy individuals use to avoid tax, far removed from the everyday experience of most of the British population.
London is a go-to for the rich and powerful because it's home to a sophisticated ecosystem of businesses that can help in the process, including creative wealth management firms, high-end lawyers and long-established accounting firms.
A 2019 analysis by transparency group Global Witness indicated that around 87,000 properties in England and Wales were owned by anonymous companies registered in tax havens.
It said that 40% of the anonymously owned properties identified were in London and that the total value of the properties was likely to be more than 100 billion pounds ($135 billion). Popular areas were said to include the boroughs of Westminster, where the U.K. Parliament is located, Camden, and Kensington and Chelsea.
The London property market has for years struggled to shake off a reputation for playing a central role in how rich people around the world seek to hide and accentuate their wealth, with many prime properties in the heart of the city owned by non-nationals. Russian oligarchs have been high-profile purchasers of London properties in recent years, for example.
For decades, authorities in the U.K. have pushed a light touch approach to regulation in order to attract foreign capital and talent. Critics say that has been a magnet for tax avoidance, which can be legal, as well as more criminal activities, including money laundering.
Duncan Hames, policy director at the campaign group Transparency International U.K., said the disclosures should act as a “wake up call” for the government to deliver on long-overdue measures to strengthen Britain’s defenses against what he termed “dirty money.”
“These leaks show that there is one system for corrupt elites who can buy access to prime property and enjoy luxury lifestyles and another for honest hard-working people,” he said. “Once again Britain’s role as an enabler of global corruption and money laundering have been exposed with the same loopholes exploited to funnel suspect wealth into the country."
Transparency International U.K. is urging the government to close a loophole that allows companies in the U.K.'s offshore financial centers such as the British Virgin Islands and the Cayman Islands to hold property in the country without requiring these companies to reveal the names of their true owners.
It also wants the government to crack down on professionals that help those with illicit wealth move and hide their cash in the U.K. and to properly resource the National Crime Agency to go after those suspected of having made their money through crime and corruption.
Treasury chief Rishi Sunak said Britain's tax authorities will inspect the Pandora Papers. He defended the country's record on tackling tax avoidance.
“I don’t think it is a source of shame because actually our track record on this issue is very strong,” Sunak told BBC radio.
He pointed to measures taken over the past decade by the Conservative government to improve transparency — who owns what — and exchange data between tax authorities.
“As you’ve seen from the papers, it is a global problem, there’s a global dimension to it and we need other countries to co-operate with us to tackle this, but we are determined to do that," he added.
Sunak also said there is “always more we can do” when he was asked about reports that half of all Russian money laundering is estimated to occur in the U.K.
continues...
Not today Sir, Probably not tomorrow.............................................. bayfront arena st. pete '94
you're finally here and I'm a mess................................................... nationwide arena columbus '10
memories like fingerprints are slowly raising.................................... first niagara center buffalo '13
another man ..... moved by sleight of hand...................................... joe louis arena detroit '14
THIS BLOCK USED
TO BE FOR FIRST-
TIME HOMEBUYERS.
THEN GLOBAL
INVESTORS BOUGHT IN.
LA VERGNE, TENN. — The homes on Tammy Sue Lane aren’t fancy. Modest in size and clad in vinyl siding, the houses were priced below $200,000 when most were built about 15 years ago, and for many families in suburban Nashville, they represented a first chance at homeownership.
A corrections officer bought one, and so did a housekeeper and an electrician.
Then some of the world’s wealthiest people bought in.
Over the past six years, 19 of the 32 homes on Tammy Sue Lane have been purchased by a billion-dollar investment venture, part of an unprecedented flow of global finance into the American suburbs. Less than 10 years old, the company has amassed one of the nation’s largest portfolios of single-family houses, becoming the landlord for tens of thousands of families.
The venture, Progress Residential, acquires as many as 2,000 houses a month through the use of a computerized property-search algorithm and swift all-cash offers. Progress executives boast that the company’s efficient management practices have been a boon to their tenants who cannot afford to buy one of the “entry level” homes.
But according to previously undisclosed documents and dozens of interviews with renters and former employees, Progress Residential has been ringing up substantial profits for wealthy investors around the world while outbidding middle-class home buyers and subjecting tenants to what they allege are unfair rent hikes, shoddy maintenance and excessive fees.
“There’s just no human decency,” said Victoria Bates, an Amazon warehouse worker who lives on Tammy Sue Lane with her husband and 10-year-old daughter. Bates said the company regularly failed to fulfill ordinary maintenance requests. While the company said it “addressed” within five days most of the 37 work orders she submitted, Bates said most of the time it didn’t fix what was needed: It took several months for the company to repair a leaky water heater, she said.
Meanwhile, Bates said, the firm levies a profusion of fees that “take advantage of regular people working paycheck to paycheck.”
In a statement, Progress Residential defended its operations, including the treatment of tenants, saying that its rents and fees are in line with industry standards and market rates.
“All of our entities conduct business according to the highest ethical and legal standards,” the company said.
Behind Progress Residential is Pretium Partners, a New York-based investment firm whose business plan and investors are revealed in the Pandora Papers, a trove of offshore financial records obtained by the International Consortium of Investigative Journalists (ICIJ) and shared with The Washington Post.
The plan sought to exploit the 2008 U.S. housing crash, which forced millions of homeowners into foreclosure and left a glut of cheap houses for sale. The financiers’ plan called for buying up tens of thousands of these properties at depressed prices and renting them to families who had lost their homes or, because of tightened lending practices, could no longer qualify for a mortgage.
To raise money for the project, Pretium Partners sent confidential invitations to people wealthy enough to put up at least $2 million. Executives projected annualized returns of 15 to 20 percent, according to a 238-page solicitation to investors in 2012. In total, Pretium Partners raised more than $1 billion, and the resulting real estate venture became Progress Residential.
The venture would “capitalize on the severe distress in the residential real estate market in the United States,” according to the pitch memo. The homes would be rented to families “who have been displaced by foreclosure or are otherwise unable to obtain financing despite being able to afford a home purchase.”
Among those who profited from America’s housing crash, according to the documents, was a Cayman Islands trust funded by one of Canada’s most powerful political donors, Stephen Bronfman, an heir to the billion-dollar Seagram spirits fortune. Another was Vikrant Bhargava, who co-founded an online gambling company that debuted on the London Stock Exchange valued at $8.5 billion. Pretium made legal arrangements so such foreign investors would have limited exposure to U.S. taxes, according to tax experts.
Global investors profited from U.S. rental homes, foreclosure crisis - Washington Post
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My cousin got really, really lucky buying in Boulder. She is a veteran and wrote a story of her life and the realtor sent it to the owner. The owner was moved by the story and chose her offer over 5 others that were cash and more. That is an anomaly now a days.
That being said the real reason for house increases is a fake demand. These billion dollar investment groups have been buying houses and renting them out setting the market prices. There should be some sort of regulation on it but not sure how you could do it or prove it?
Wow. We were specifically told not to write or read any personal letters when buying/selling our home.
Opens up everyone to violating Fair Housing Act. Taking a lesser offer because someone is a veteran would be a clear violation. Better hope none of the other realtors/buyers care enough to pursue.
"That being said the real reason for house increases is a fake demand."
"These billion dollar investment groups have been buying houses and renting them out setting the market prices."
^These sentences don't make sense when you put them next to each other.
They buy the houses. They set a higher price causing others to follow suit. There never was a real demand until theses companies started squeezing the market themselves. Does that make better sense?
Edit: I was wrong on the bid. She upped it 5K more than the other buyers.
The Fair Housing Act protects individuals from discrimination when buying or renting a home, getting a mortgage or obtaining housing assistance. The law prohibits discrimination based on race, color, national origin, religion, sex, familial status, and disability.
https://www.fool.com/the-ascent/mortgages/articles/the-danger-of-writing-love-letters-to-home-sellers/
https://www.businessinsider.com/home-buying-things-to-know-personal-letters-sellers-buyers-realtors-2021-8