Developed Country Financial Scandals and the Offshore Industry

The a previous article we outlined the history of Offshore finance that all Belize attorneys need to understand to better serve their clients in these financially difficult times.  This article is Part 2 and covers some of the recently financial scams that have been perpetrated in developed nations.

Bernie Madoff is charged with swindling well-to-do, clever and capably advised first world citizens around sixty-five billion dollars. His companies were to be foundsited not “offshore”, but right in London and the United States. He was supposed to be regulated by the SEC and even the famous and various departments did not raise an eyebrow. These include the tax services, the FBI and the CIA that were at the time to be following “suspect” banking movements and money laundering activity based on the formerly forced through Patriot Act. It can be said that at least $65 B of dishonestly obtained money, were thus “laundered” right under the watchdogs’ noses.
 
Sir Allen Stanford, a US citizen, has been the poster child for “offshore” scams. His primary operations were situated in Houston and only is his bank was located offshore. Further, being a citizen of the America, the American authorities had extra territorial jurisdiction over him anywhere. He still functioned with impunity right under, from and with, the America, US citizens and worldwide investors. His bank associates were even in Belize soliciting customers at one point in time, but providentially, the few Belizeans were a bit more financially savvy due to their offshore exposure.
 
Also Texas based, was the large Enron that was the model of how to falsify bookkeeping records. Some other instances of creative accounting include now reputable companies like Xerox, AOL, Bristol Myers Squibb, Duke Energy (once an investor in BECOL/BEL), Freddie Mac, Halliburton (of Iraq/Afghan war fame), Kmart, Merck, Merril Lynch, Qwest, Tyco International, Worldcom, Chiquita and AIG. These were all perpetrated to a large extent by one of the following accounting firms: PWC, Ernst & Young.  Though some are no longer existent in their former states due to the scams they participated or rather, structurally advised.
 
Then there was the European trader Jerome Kerviel that caused loss to Societe Generale laundering billions through the (then) respected Bank of New York. Bear Sterns and Lehman Bros. BCCI and Northern Rock WAMU and Bear Sterns are just a few of the more better known fiascoes. Their products included derivatives and swaps and the list goes on.

This history would help all Belize attorneys or Belize lawyers better explain why the Offshore industry in companies like Belize should not suffer undue regulation since financial scams can be and have been implemented in all countries of the world.