Exposing Shell Companies (Part 1) - Extracts from Captain Ajit Vadakayil's Blog Posts

A SHELL COMPANY  is a business in name only, with no actual employees or products. It exists only on paper and can be set up within a matter of hours.

They are the global getaway cars for criminals involved in money laundering, bribery, tax evasion, drug trafficking, piracy and terrorism..

The term SHELL company is  used to describe companies that exist merely as a front for a person or organisation that wishes to hide its identity.

Panama’s history as a tax haven

There were  214,000 shell companies related to the Panama-based law firm Mossack Fonseca.

JEW Rothschild’s agent JEW Hitler did NOT die in his Berlin bunker. He lived to a ripe old age in South America...

Jew Hitler had his German agent in Panama to sell his stolen art and siphon money -- JEW Erhard Mossack, a Rottenführer (senior corporal) in the Waffen-SS, the armed wing of the Nazi Party's Schutzstaffel.  

Erhard was the father of JEW Jurgen Rolf Dieter Mossack of Panama law firm Mossack and Fonseca.


Panama’s history as a tax haven is quite old. It goes all the way back to 1919


Today we all hear the term SHELL COMPANY  for HIDING DIRTY MONEY.

What is its origin?

It originated in Panama .

“SHELL COMPANY “ FOR TAX EVATION AND MONEY LAUNDERING HAS BEEN GIVEN HAJAAR SPIN BY JEW ROTHSCHILDs HISTORIANS.

 I WONDER WHY A BLOGGER HAS TO REVEAL THIS FOR THE  FIRST TIME ON THE PLANET.

Tax Haven Model

A tax haven in Panama helped SHELL of Rothschild and Standard Oil of chillar agent Rockefeller  dodge U.S. taxes and regulations, such as the Seaman’s Act, which provided certain rights for sailors and safety standards for the boats.  

Jew Hitler had his German agent in Panama to sell his stolen art and siphon money -- JEW Erhard Mossack, a Rottenführer (senior corporal) in the Waffen-SS, the armed wing of the Nazi Party's Schutzstaffel.  


Offshore financing  soon followed when Jew Rothschild , searching for ways to avoid taxes, helped Panama craft lax company incorporation laws that enabled foreign investors to set up tax-free, lax company incorporation laws-- anonymous corporations, with few questions asked.

The development of Panama offshore, however, took place in the 1970s. Panama adopted the familiar tax haven model, based on the three pillars of tax havens:

• the tax exempt company, 
• bank secrecy laws, and 
• competitive incorporation laws, adopting Jew Rothschild’s  Swiss-style banking secrecy, abolishing currency controls and setting up tax exempt companies. 

In 1975,  Jurgen Mossack worked as a lawyer in London before returning to Panama to start a firm in 1977.   Co founder crypto JEW Ramón Fonseca is an award-winning novelist ( for bullshit work ) who has worked in recent years as an adviser to Panama’s president..

Mossack’s practice only became Mossack Fonseca in 1986, when it merged with the firm run by Ramón Fonseca Mora, our Panamanian bullshit novelist, lawyer, and politician. 

They built a global group of 600 employees and 46 subsidiaries, including the Bahamas, the British Virgin Islands, Hong Kong, Switzerland, Jersey, Luxembourg, the US, specifically the states of Wyoming, Florida, and Nevada.

Mossack Fonseca worked with more than 14,000 banks, law firms, company incorporators and other middlemen to set up companies, foundations and trusts for customers

Megastars Jackie Chan and Lionel Messi are among the big names celebrities named in the Panama files as using the controversial law form to invest their millions offshore.  At least 20 other footballers from super teams Barcelona, Real Madrid and Manchester United are also said to have used Mossack Fonseca's services to set up offshore havens.

ALMOST EVERY SUPER YACHT OWNER OPERATES SHELL COMPANIES 

If you're a African warlord or a corrupt politician, you like shell companies because they provide an anonymous way to take ill-gotten money and move it into the legitimate financial system — good for buying super yachts

Some of the assets cycled through the shell companies were used to buy yachts, private jets, Manhattan penthouses and luxury homes in Beverly Hills, Calif., the Panama law firm documents show.

Here's how the scheme works : 

• Say you've got a super yacht parked in some Pacific  island., but you don't want anybody to know that it belongs to you, perhaps because you're a corrupt government official who shouldn't be able to afford such a thing. 

• Instead of the yacht being registered under your name, it can be bought and registered under the name of the shell company that Mossack Fonseca has created for you in the offshore tax haven of your choice. Now, if someone wants to find out who owns your yacht, it will be virtually impossible.

• The same setup could be used to hide your ownership of a private island, $100 million in cash, private jet or any number of other assets or funds.

NO NEED FOR MANY WIVES AND MISTRESSES TO TEAR EACH OTHERS HAIR WHEN HE DIES

Laundered Money is Used...

But the money doesn't necessarily stay there... laundered money is used to purchase London mansions, yachts, securities, art, and luxury estates around the world. In 2014, the Chinese overtook the Russian JEWS  as the largest buyers of New York City condos.  

HOW PAINTINGS FETCH MILLIONS OF DOLLARS

YOU MUST HAVE WONDER HOW SHIT PAINTINGS FETCH MILLIONS OF DOLLARS. 

WELL, IT IS A JEWISH SCAM!

TILL INDIAN PAINTER FRANCIS NEWTON SOUZA DIED,  HIS PAINTINGS DID NOT FETCH ANY  HIGH PRICES.    

IT JUST STAYED IN THE LIMELIGHT JUST BECAUSE HE MARRIED A WHITE JEWESS ..

AS SOON AS HE DIED HIS JEWESS RETARDED DAUGHTER STARTED RAKING IN MILLIONS. (  POOR "APUN BHI ART COLLECTOR " TINA MUNIM  ) 

What visitors in art galleries and Christy / Sotheby auctions don’t know as they look at these Monets, Matisses and other masterpieces is that many of them are legally owned by secrecy-guarded companies in tax havens: Liechtenstein, the Cayman Islands, the British Virgin Islands and the Cook Islands.

Well-known art collectors with companies registered through Mossack Fonseca include Spain’s Thyssen-Bornemisza clan, and Picasso’s granddaughter, Marina Ruiz-Picasso.

Mossack Fonseca was constantly helping to shuffle billions of dollars’ worth of art in and out of shell companies based in tax havens around the world. Van Gogh’s 1884 painting, Water Mill at Gennep, is one of the works  Thyssen-Bornemisza purchased with the help of an offshore operative based in the Cook Islands

Documents obtained by the International Consortium of Investigative Journalists show how Thyssen-Bornemisza built up part of her collection ( wife of German Jew  Baron Hans Heinrich Thyssen-Bornemisza )  buying art from international auction houses such as Sotheby’s and Christie’s through a Cook Islands company.

ALL PAINTINGS STOLEN BY JEW HITLER WERE JEW ROTHSCHILDs MAAL--  LATER. SOLD VIA PANAMA  

ART IS USED FOR MULTIPLYING MONEY AND MAKING MONEY OUT OF THIN AIR—AN ART PERFECTED BY JEWS.

JEWS OWN ALL CRITIC MAGAZINES AND FINE LIFE TV  

SHIT  FUCKIN’ WINE IS SOLD FOR THOUSANDS OF DOLLARS—WINE TASTERS ARE IN THEIR PAYROLL

If Mossack Fonseca’s main job was to keep assets and their ownership secret, then it was tailor-made for servicing the international art world, where dynastic fortunes can be made on the basis of nothing more than knowing who owns what.

JEW Dmitry Yevgenyevich Rybolovlev  is a Russian businessman, investor..   In 2014, a Swiss court ordered him to pay over $4.8 billion to his former wife Elena Rybolovleva THE most expensive divorce settlement in history. 

In  2016, it was revealed by the International Consortium of Investigative Journalists (ICIJ) that Rybolovlev used a company registered in the Virgin Islands to hide art from his former wife Elena during their divorce proceeding.

the man who sold Rybolovlev most of those paintings. Yves Bouvier is connected to five different Mossack Fonseca companies (Rybolovlev is comparatively modest, with a mere two), and would mark up the paintings he was selling by astonishing amounts.

Rybolovlev’s lawyers estimate that Bouvier overcharged his client by the hilariously specific, yet eye-poppingly enormous, sum of $1,049,465,009. Call it a nice round billion. 

Rybolovlev incorporated a company called Xitrans Finance Ltd in the British Virgin Islands, to own paintings by Picasso, Modigliani, Van Gogh, Monet, Degas and Rothko. When he split from his wife Elena, he used Xitrans to move the art out of Switzerland – and, not coincidentally, out of the jurisdiction of the Swiss divorce courts.

In the art world, by contrast, the most transparent companies of all – the auction houses – typically charge sellers about 12 percent, and buyers about 20 percent, for a total commission of more than 30 percent.  

And in private transactions, the slice taken by the middleman can be bigger still – even when prices get up into the $100 million range, as can be seen with the Bouvier-Rybolovlev transactions.

The purpose behind such corporate SHELL company maneuvers nearly always involves opacity: to ensure that no one knows who the art sellers might be, or what other art they might own.

On top of that, the art market is characterized by easily-moved goods. Sometimes, a painting doesn’t even move when it’s sold; the “freeport” simply changes the name of the owner.

The combination of tax havens, portability and secrecy is catnip to money launderers:   Add a few layers of shell companies, and you have a way of storing and moving billions of dollars in value in a manner that’s all but untraceable.

What kind of person invests in an asset that sits expensively in a warehouse, is never exhibited, and never generates any cash, but can be liquidated for a huge amount of money in case of emergency?   

The secrecy of the art world, enabled by agents such as Mossack Fonseca, is a cancer that withholds masterpieces from public view and that turns the art market into a billion-dollar game of ultra-high-stakes hide-and-seek.   

It is a cosy kosher club.  

If you are not a Jew you get cheated .

Yes, the amount of money in the art world has never been greater. But the Panama Papers are a welcome reminder of the real-world cost of all that money.

HOW PAINTINGS TURN INTO GOLD

Italian artist Amadeo Modigliani, is known as “Seated Man with a Cane.” Modigliani, a young, impoverished alcoholic, died of tuberculosis almost a century ago; his paintings today sell for as much as $170 million.

• Art has become a valuable asset for a global kosher elite eager to stash their money in safe and secluded harbors.  In 2015, sales of art exceeded $63.8 billion.
• Since art is easily transportable, expensive and poorly regulated,  it is often used for money laundering...
• Money obtained illegally—from fraud, embezzlement, bribery, etc.—needs a hiding place. A huge deposit into a bank account, with no clear indication of where that money came from, is a red flag for the IRS.
• So instead of depositing dirty money, or holding onto it as cash, disreputable people will often turn the money into something else ( say art ) or filter it through a business so it comes out the other side looking like the profits of a legitimate enterprise.
• The tax laws in art make it basically legal to not pay taxes on art.   Hypothetically, someone could buy millions of dollars worth of art without the IRS knowing, and then later sell those works for a “legitimate” profit that looks clean on taxes.

• Money laundering can be tricky since governmental tax and revenue agencies keep a close eye on how money is circulated.   In the US, deeds and titles require a name, at least.

• However, the art market—where the price of an artwork can rise or fall by the thousands from one sentence to the next, deals are made in secrecy, and “private collectors” remain anonymous—is virtually unregulated

SHIT PAINTINGS TURN INTO GOLD

• When high-dollar art changes hands, it often lands in a free trade zone known as a freeport. As long as art is housed in the freeport, owners pay no import taxes or duties.
• The freeport system is used to dodge tax or launder money since precise inventories and transactions are not tracked.  The oldest freeport, with the most art, is in Geneva. Its complex of storage facilities is said to contain enough treasure to rival any museum in the world.

Thousands of paintings are being used by criminals to hide illicit profits and illegally transfer assets around the globe.

In February of 2013, the European Commission passed ordinances that require European galleries to report sales above 7,500 euros paid in cash, as well as file suspicious-transaction reports.

Roughly half of art transactions are private, strictly between sellers and buyers. There is little public information about these sales.   The rest are done through public auctions, which provide some transparency in regards to price but usually still allow buyers and sellers to remain a mystery.

Christie’s ( French Rothschild front Pinault ) branch  has left their rival Sotheby trailing. As art prices surged, so did Christie’s shares. Sales of Christies in 2015 totalled  was in excess of  $7.4 billion USD.   

Crypto Jew  James Christie  dies 1803) was the founder of auction house Christie's.  Auctions are theatrical spectacles with a lot of scaffolding and engineering behind them.

Shell companies are part of that scaffolding. Art buyers and sellers can hide assets, evade taxes and remain anonymous,

ART VALUE JUMPS— MANIPULATED  BY JEWS – AT KOSHER WILL-- MONEY OUT OF THIN AIR

Shell companies used to transfer assets of a company onto a new company without liabilities 

Shell companies can be used as a means to transfer assets of one company onto a new company without having the liabilities of the former company.  

For example, when Sega Sammy purchased the bankrupt Index Corporation, they created a shell corporation called Sega Dream Corporation in order to transfer valuables assets such as the Atlus company's Intellectual Properties and Patents and the Index Corporation brand into a new company.  

This meant that the liabilities were not attached as a shell corporation is registered as a new company. This process resulted in the former Index Corporation being dissolved. Sega Dream Corporation was eventually renamed as Index Corporation.

 In the US, Delaware is a go-to spot

As the name suggests, shell companies are hollow. They do nothing but manage the money inside of them, with lawyers or accountants listed as management.. If authorities try to figure out whose money is really inside of the company, they end up just getting those lawyers and accountants.

This makes shell companies perfect for owning assets or opening bank accounts without leaving a trace of whose DIRTY money it actually is.

Even in places that do make shareholder information public, it is often still easy to make the owners anonymous.  This is done by making the shareholders be further companies registered somewhere that keeps their owners secret, or by registering the company in someone else's name, even that of a total stranger.

Astonishingly, it's entirely legal to do this in the majority of countries, and there's an entire profession dedicated to providing such 'nominee' services.

Shell companies are usually set up in places with weak anti-corruption laws. These tend to be the offshore financial centers like the British Virgin Islands, Macao, or Panama. 

In the US, Delaware is a go-to spot — the nation's first state reportedly has more companies than state residents.

It can be a matter of just a few hundred dollars or a few thousand dollars. You can set up an anonymous shell company in Delaware USA the same day

The address “1209 North Orange Street” in Wilmington, Del., has become known in recent years as the epicenter of U.S. corporate secrecy.

The squat, split-level building is the official address of over 285,000 companies, many of which are looking to take advantage of Delaware’s Panama-like secrecy rules, limited disclosure requirement, tax incentives, and business-friendly case law.  

Hillary and Bill Clinton quietly set up 5 shell companies listed at “1209 North Orange Street.in  2008 and 2013.

The names of the companies, but not their location, were first made public in tax filings released by Hillary Clinton last year.  Hillary must explain why she and her criminal  foundation are hiding behind Delaware’s secrecy laws.

The “1209 North Orange Street” building is the headquarters for the Corporation Trust Company. The firm acts as a registered agent for thousands of corporations that are not actually located in Delaware, including the Clintons’ companies.

Delaware has become a corporate haven that’s comparable to more well-known, offshore locales. Delaware’s laws rival well-known secrecy havens like the Cayman Islands and Panama.

If you imagined a building with 1,000 corporations in it, you’d imagine a building like the Empire State building.   But apparently 285,000 companies claim [1209 North Orange Street] is their address.

Delaware’s popularity as a hub for shell companies Is responsible for the loss of billions of dollars in revenue in other U.S. states.   It’s legal tax avoidance

Laws make it easier for criminals to evade federal taxes or finance terrorism, all under the radar of the public and U.S. authorities.  Imagine Clinton had  railed against tax havens on her election roadshows  and vowed to take action.

The process of setting up a company in the state can be completed in just a few hours and requires less paperwork than registering for a library card in the state. 

There are more than 1.1 million companies registered in the state – more than Delaware’s population of 935,000. This including 65 percent of Fortune 500 parent companies

In Wyoming, Nevada and Delaware, it’s possible to create these shell corporations with virtually no questions asked

Fusion—one of the media companies that had access to Fonseca documents—demonstrated on video that one of its collaborators was able to form a Delaware shell company for her cat. This took only a few minutes, $249 (via credit card), and required no identification documents at all.

A key factor is known as the “Delaware Loophole,” which lets corporations pay zero taxes on intellectual property

Shell companies have become progressively more known for their involvement with illegal activities, including:

• Money Laundering

• Billing Schemes

• Fictitious Service Schemes

• Bankruptcy Fraud

Money laundering is the process of taking money obtained from illegal actions and making it seem like it was acquired from legitimate sources. Criminals launder money to prevent being linked to illegal activity. The most common types of money launderers include drug traffickers, embezzlers, corrupt politicians, mobsters, terrorists, and con artists.

 The three basic steps of the money laundering process are:---

1. Placement – The launderer will input illegally obtained money into a legitimate financial institution. Banks are required to report high-value transactions, so usually the money will be deposited in small increments over a period of time. This is known as the riskiest stage of the process.

2. Layering – This includes wire transfers and bank-to-bank transfers to spread the money out among various financial institutions. The criminals will usually set up accounts under other names at different banks in different countries. While transferring the money in between the various bank accounts, the money is used to purchase high cost items ( yachts , houses, cars, diamonds, planes ) to change the form of it. The whole idea is to make the money as untraceableas possible; therefore, it’s considered the most complex step of the process.

3. Integration – This step involves the money re-entering the mainstream economy in legitimate form. The money appears to come from a legal source and therefore is usable by the launderer.

Shell companies are an integral part of the money laundering process. For example, a person may set up a “false” business by obtaining the necessary and proper documents to open a bank account in the business name. The dirty money ( kickbacks/ drugs etc )  is then put into the bank account, making it seem as though it was obtained legitimately.

Use of shell companies in bankruptcy fraud

The use of shell companies in bankruptcy fraud is to shield assets (money, property, valuable items, etc.) from being taken by the court when filing for bankruptcy. In other words, an individual or individuals will set up a shell entity and hide their money and/or personal assets under the business name. Thus, allowing them to file for bankruptcy with the government without having to surrender their personal assets.

Shell companies are used in tax evasion and market manipulation scams-  Shell companies have been used to hide personal assets under false business names in order to avoid tax liabilities, similar to the purposes in bankruptcy fraud. 

Market Manipulation

In regards to market manipulation, shell companies are used to stage fake stock offerings to outside investors. When the investors decide to invest in what seems like a legitimate business, the criminals steal their invested dollars.  Such fraudulent acts can be damaging to the market and hinder investor’s trust.

Shell companies are legal entities (sic) that are frequently used by individuals to conduct criminal behavior. India must make shell companies illegal.  Or our demonetisation  pain will bear NO fruit.  

Such fraudulent measures include money laundering, billing schemes, fictitious service schemes, bankruptcy fraud, tax evasion, as well as market manipulation.

Criminal operations use shell companies to launder money throughout the world. So-called dirty money can be shuffled through a series of shell companies, coming out “clean” on the other end in the form of investments, bearer bonds, commodities, and other assets. 

Since these companies can be set up with nominee directors (usually lawyers and accountants), there is no way to trace the laundered assets back to the illegal activity that generated them. While authorities are continuously investigating the illegal utilization of shell entities, they are finding it difficult to prosecute those whom are criminally involved. Third-party agents and nominee incorporation services make it even harder for authorities to trace illegal activity to the original creator of the shell.

Since these companies can be set up with nominee directors (usually lawyers and accountants), there is no way to trace the laundered assets back to the illegal activity that generated them.