Mossack Fonseca: The Nazi, CIA And Nevada Connections... And Why It's Now Rothschild's Turn

Tyler Durden's picture

For all the media excitement about the disclosed names in the "Panama Papers" leak, in this case represented by the extensive list of Mossack Fonseca clients, this is not a story about which super wealthy individuals did everything in their power, both legal and illegal, to avoid taxes, preserve their financial anonymity, and generally preserve their wealth. After all, that's what they do, and it should not come as a surprise that they will always do that, especially following last year's disclosure by the same ICIJ which revealed a list of 100,000 HSBC clients who had been dutifully avoiding the payment of taxes.

What the story is about is the nebulous world of offshore tax evasion and tax havens, which based on data from the World Bank, IMF, UN, and central banks, hide between $21 and $32 trillion, where registered incorporation agents and law firms in small Caribbean countries (and not so small US states) make the laundering of money and the "disappearance" of the super wealthy, into untracable numbers hidden behind shell companies, possible.

So, in order to learn some more about the real star of this story, the Panamanian lawfirm of Mossack Fonseca, we went to Fusion which has compiled a fascinating story of the company's history, founders, and key milestone events in its life. 

 

These include the Nazis, the CIA, Mexican drug lords, and of course, the U.S.

First, here is the Nazi and CIA connection:

Jurgen Mossack’s family landed here in the 1960s. During World War II, his father had served in the Nazi Party’s Waffen-SS, according to U.S. Army intelligence files obtained by the ICIJ. Once in Panama, the elder Mossack offered to spy on communists in Cuba for the CIA. (Mossack Fonseca said the firm “will not answer any questions related to private information regarding our company founding partners.”)

Here is the connection to Mexican drug lord Rafael Caro Quintero, and perhaps to the DEA:

Many times Mossack Fonseca has had no clue which nefarious characters were doing what with the companies the firm created – as when Jurgen discovered in 2005, according to internal emails, that he was the registered agent and listed as the director for a company controlled by the Mexican drug lord Rafael Caro Quintero. The co-founder of the Guadalajara Cartel was convicted in Mexico in 1985 for the brutal murder of U.S. DEA agent Enrique “Kiki” Camarena. (Today, Quintero is again considered a fugitive by the US after walking out of prison in 2013 on a technicality).

 

Mossack Fonseca’s senior partners instructed an employee to carry out their resignation from the company upon the discovery. "Pablo Escobar was like a newborn compared to R. Caro Quintero!” Jurgen wrote in reaction to the news. “I wouldn't want to be among those he visits after he leaves prison!"

And then there is the state of Nevada:

In 2013, an Argentine prosecutor’s report linked Nevada-incorporated shell companies involved in a major corruption scandal to Mossack Fonseca. When those shell companies became the subject of a federal court battle in Nevada, the leaked files show, Mossack Fonseca employees took steps to remove paper records and to wipe computer files and phone logs at its Las Vegas office. One employee even traveled from Central America to Nevada to bring back files. “When Andrés came to Nevada he cleaned up everything and brought all documents to Panama,” according to an email dated Sept. 24, 2014.

 

Mossack Fonseca said it “categorically” denies hiding or destroying documents in its statement to the ICIJ: “Let us be clear that it is not our policy to hide or destroy documentation that may be of use in any ongoing investigation or proceeding.”

 

The leaked records also contradict sworn testimony by Jurgen Mossack, who told the federal district court that his firm was separate from “MF Nevada,” its office in Las Vegas, and had no control over it. Mossack Fonseca “has never maintained an office, establishment or principal place of business in Nevada,” Mossack testified in July 2015. But, according to the ICIJ investigation, internal documents show the opposite, indicating that the firm’s Panama City headquarters controlled MF Nevada’s bank account, and that the firm’s co-founders and one other official with the company owned 100 percent of MF Nevada.

Why is Nevada important? Because recall that according to a recent investigation by Bloomberg, "The World’s Favorite New Tax Haven Is the United States" ...

... and specifically several US states such as Nevada, Wyoming and South Dakota.

After years of lambasting other countries for helping rich Americans hide their money offshore, the U.S. is emerging as a leading tax and secrecy haven for rich foreigners. By resisting new global disclosure standards, the U.S. is creating a hot new market, becoming the go-to place to stash foreign wealth. Everyone from London lawyers to Swiss trust companies is getting in on the act, helping the world’s rich move accounts from places like the Bahamas and the British Virgin Islands to Nevada, Wyoming, and South Dakota.

 

How ironic—no, how perverse—that the USA, which has been so sanctimonious in its condemnation of Swiss banks, has become the banking secrecy jurisdiction du jour,” wrote Peter A. Cotorceanu, a lawyer at Anaford AG, a Zurich law firm, in a recent legal journal. “That ‘giant sucking sound’ you hear? It is the sound of money rushing to the USA.”

That money is rushing for one simple reason: dirty foreign - and local - money is welcome in the U.S., no questions asked, to be shielded by the most impenetrable tax secrecy available anywhere on the planet.

One may even say that nowadays, US-based tax havens are the new Switzerland, or Bahamas or, for that matter, Panama. Indeed, for most Americans, offshore tax haven are now meaningless with the passage of the FATCA law, which makes the parking of dirty US money abroad practically impossible. So where does that money go instead - it stays in the US:

Others are also jumping in: Geneva-based Cisa Trust Co. SA, which advises wealthy Latin Americans, is applying to open in Pierre, S.D., to “serve the needs of our foreign clients,” said John J. Ryan Jr., Cisa’s president.

 

Trident Trust Co., one of the world’s biggest providers of offshore trusts, moved dozens of accounts out of Switzerland, Grand Cayman, and other locales and into Sioux Falls, S.D., in December, ahead of a Jan. 1 disclosure deadline.

 

Cayman was slammed in December, closing things that people were withdrawing,” said Alice Rokahr, the president of Trident in South Dakota, one of several states promoting low taxes and confidentiality in their trust laws. “I was surprised at how many were coming across that were formerly Swiss bank accounts, but they want out of Switzerland.”

And, to top it off, there is one specific firm which is spearheading the conversion of the U.S. into Panama: Rothschild.

Rothschild, the centuries-old European financial institution, has opened a trust company in Reno, Nev., a few blocks from the Harrah’s and Eldorado casinos. It is now moving the fortunes of wealthy foreign clients out of offshore havens such as Bermuda, subject to the new international disclosure requirements, and into Rothschild-run trusts in Nevada, which are exempt.

 

* * *

 

For financial advisers, the current state of play is simply a good business opportunity. In a draft of his San Francisco presentation, Rothschild’s Penney wrote that the U.S. “is effectively the biggest tax haven in the world.” The U.S., he added in language later excised from his prepared remarks, lacks “the resources to enforce foreign tax laws and has little appetite to do so.”

Yes, Mossack Fonseca may now be history, and its countless uberwealthy clients exposed, but none other than Rothschild is now delighted to be able to fill its rather large shoes. In fact, someone with a conspiratorial bent may decide that today's dramatic takedown of the Panama "offshoring" industry was nothing more than a hit designed to crush the competition of domestic "tax haven" providers... suxh as Rothschild.

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Paveway IV's picture

Of course it's propaganda, but one can only hope the targets of this Soros/CIA smear will get pissed and retaliate. Leak wars. 

I would love to see the rich psychopaths start eating each other in public. That would truly be poetic justice. We can just wood-chipper the lesser minions that escape.

beemasters's picture

"Today, Mossack Fonseca is considered one of the world’s five biggest wholesalers of offshore secrecy."
http://www.irishtimes.com/business/financial-services/who-are-mossack-fo...

Can ZH please do an exposé of the other four? The ones that don't get a mention usually hold the real Moby Dick of scandals.

___________'s picture

how much money\wealth do you guys think is hidden in israel?

 

mossak fonseca is just a tiny drop

NidStyles's picture

Notice they never leak anything about the communist leadership of the CIA.

Richard Chesler's picture

Mostly Obongo and Hilderbeast campaign contributors.

Call me surprised...

 

indygo55's picture

"it stays in the US"

Right where the bankers want it for the greatest financial implosion the history of the world has ever seen and the greatest robbery the history of the world has ever experienced.


Richard Chesler's picture

Mossack as in Mossad?

Shady, corrupt, dishonest, ObonGOYIM charlatan Meister Puppet???

Bet your ass there are cockroach jews behind it!

 

 

sodbuster's picture

The NWO bankers and backers constantly scream about doing away with cash, to help stop crime and the underground economy. But that's not really where the biggest problems and crime is committed, is it????

techpriest's picture

Over $30 trillion in hidden assets and much of it hidden in the US. Sounds like the government just figured out how to pay its debtors.

Four chan's picture

rand corporation, trilateral commision, council on foreign relations, and the bilderbergers. 

Handful of Dust's picture

How much of that embezzled money flows thru several Panana shell corporations and then into Hongcouver or Cali real estate?

It's no wonder realtors, bankers and the law don't ask the buyers the source details. Who wants to lose a commission or bonus?

 

No one, from the AG's office to the DOJ, gives a hoot about these Big Fish breaking the laws.

WordSmith2013's picture

A LOT more to the PP than meets the eye ... as usual.

 

Panama Papers: This Is Who They’re Really Are Out to Get and Why They Published Them Now

http://www.cosmiconvergence.com/2016/04/04/panama-papers-this-is-who-theyre-really-are-out-to-get-and-why-they-published-them-now/

 

WTFRLY's picture

Joo World Order loading ... ... ... 84% (Do you want to execute The Expendable Purge?) Yes?

No

xythras's picture

Only not-smart-enough people pay taxes.

In most of Europe you can create a religious cult, foundation, etc and put all your assets in them, and voila, no/very few taxes to pay.

But you need a fucking room temperature IQ at least in order to do it. Or spend some $ on an expert jurist.

jazz571027's picture

Right - papers appear to be scrubbed very clean of the US criminals... 

The Navigator's picture

yep, those morons haven't read about Cyprus and the bail-in's coming to US banks.

nmewn's picture

If I can get a word in edgewise on this (outside of corrupt politicians and their cronies) hiding stolen wealth they got from cronyism, what is the problem with people hiding their wealth FROM corrupt politicians and their cronies again? ;-)

conscious being's picture

You want to hear about a tax scam? On the day before 9/11, Rumsfeld announced that the Pentagon was unable to account for over $2T. The next day, the accounting team, chasing it down in the Pentagon was dead appearently. So when who knows how many theives pocketted their piece of the take, did they notify the IRS? Did they pay taxes? Does anybody care? No

Frankie Carbone's picture

Yes because everyone knows that the Republicans are noble and virtuous. 

Take that Red/Blue shit to another website, would you? 

MasterControl's picture

Another leftist thats mad the scammers are mostly leftist.

Frankie Carbone's picture

Hey, when all you have is a hammer, everything looks like a nail. 

anonnn's picture

 

The alleged leak via Mossack Fonseca documents is deliberate propaganda using omitted data to align with a twisted purpose.

As a former UK ambassador pens:

 

 https://www.craigmurray.org.uk/

..."What do you expect? The leak is being managed

by the grandly but laughably named "International Consortium of Investigative Journalists", which is funded and organised entirely by the USA’s Center for Public Integrity. Their funders include

 

Ford Foundation
Carnegie Endowment
Rockefeller Family Fund
W K Kellogg Foundation
Open Society Foundation (Soros)

among many others. Do not expect a genuine expose of western capitalism. The dirty secrets of western corporations will remain unpublished.

Expect hits at Russia, Iran and Syria and some tiny "balancing" western country like Iceland. A superannuated UK peer or two will be sacrificed – someone already with dementia."...

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memedada's picture

RE: NidStyles

I want to know more about how an indoctrinated mind works. I hope you can help.

Can you define communism?

Can you name 1 person in charge in the US administration that you would consider a communist?

What communist policies have you seen been implemented in US (ever)?

Disclaimer: I’m not a communist but I know the first thing TPTB want to destroy (in order to stay in power) is language (= the method people can use to describe current affairs/fight propaganda and to formulate alternatives).

The Wizard's picture

Don't get caught up in the label game, communist, capitalist, left, right, conservative, liberal, progressive, etc.

Bottom line is centralization vs. decentralization. Central Planning vs. Free Markets/Thought

Memedada's picture

I don’t just see “capitalism”, “socialism”, “anarchism”, “communism”, “fascism”, “conservatism” etc. as pure labels.

They actually describe very different ideologies – views on history, the role of the state, society and the public, economics, human nature, science etc.

In US there’s the (very wrong) idea that the left-wing is pro-state and pro-centralization – and that the right-wing is vice versa. That alone is telling of the power of corporate propaganda.

I’ve even seen some commentators on ZH using Marxism as an ideology (or as synonymous with communism) – again telling of how intellectually “challenged” the “debate” in US is.  

conscious being's picture

"...again telling of how intellectually “challenged” the “debate” in US is."

Right, if that's the case then revisit Wizard's post, just above yours. Do you think he is on to something?

I do.

Ghordius's picture

that's propaganda of the exceptionalist kind. done so that the dear US lambs don't see too few differences between the two pens that are allocated to them

the exceptionalism of it is easily proven: only a native of the US would ever make a comment like yours

Calmyourself's picture

Fabian society or remnants is very active enough said..  You serious bro?

Bingo Hammer's picture

Communist? Nah, I'd go with Nazi leadership of CIA NidS

0b1knob's picture

So the Nazi connection is that "During World War II, his father had served in the Nazi Party’s Waffen-SS..."

Really?  That's all you got?  People inherit being a Nazi from their parents?

VWAndy's picture

Na just the ill gotten booty.

conscious being's picture

That's why they are suitable for being busted.

Pandos's picture

Well then no jews are involved because of the nazi thing.

LA_Goldbug's picture

That one will not work anymore  :-)

"Hitler's Jewish Soldiers: The Untold Story of Nazi Racial Laws and Men of Jewish Descent in the German Military"

http://www.amazon.com/Hitlers-Jewish-Soldiers-Military-Paperback/dp/0700...

HowdyDoody's picture

Look no further than Ukraine to see Jewish oligarchs using NeoNazi foot soldiers to ethnically cleanse the east of Ukraine.

conscious being's picture

And look no further than the TD article to see the AngloZionist oligarch, Rothchild bumping off the competition based on croney, captured connections.

Anasteus's picture

Well, the conspiratorial bent of Rothschild merely having crushed the competition has one serious flaw. It's far more than that, it also means crushing of the offshore trust as a whole and endangering all those in the highest positions of the system, which, when combined, may lead to an unrecoverable 'systemic error'; and thus Rothschild as a competitor would be a victim too.

No, this is something different. If it really were the Rothschilds, then all this would be the biggest joke of their life and a U turn par excellence. But I prefer a more pragmatic explanation of someone influential, who had access to the documents, who was brave and already fed up enough with the existing system as such. Maybe someone directly from Mossack Fonseca.

Frankie Carbone's picture

One could make the argument that he learned his value system from his parents. 

Stuck on Zero's picture

"Mossack Fonseca is considered one of the world’s five biggest wholesalers of offshore secrecy..."

There's a sixth one but no-one knows who it is.

I need more asshats's picture

There the ones paying Tyler to do this story. Copy paste $50k.

Kirk2NCC1701's picture

The International Man (Doug Casey) and Sovereign Man (Simon Black) will be soooo pissed, to learn that the best tax havens are not offshore, but in the US.

I think the point is, if you're from outside the US, as long as you're not Russian or Iranian, the US is the place to hide untaxed or dirty/bloody money. If you're from the US, you still need to hide it offshore.

booboo's picture

Not to many firms can sent The Hammer to Nevada and use Senator Harry Reid for a human punching bag and walk away scott free.

what's that smell's picture

fucking nazis!

as we all know it's volkwagen that cheats and deutsche bank that launders.

fucking nazis!

and the united states of anglozionist neocuckocon khazars are as pure as a virgin's honey pot.

fucking ashke-nazis!

Gonzogal's picture

It would be great to see the US oligarchs take the outing they deserve, HOWEVER if you look at the documents that have been "leaked" and who is named NOT ONE US "leader" has been named.  Instead, its all the leaders of countries that are on the US "bad list" except Saudi's take a bath, and even the UK the only one mentioned is Cameron's father and just in passing!

https://panamapapers.icij.org/20160403-panama-papers-global-overview.html

https://projects.icij.org/panama-papers/power-players/index.html

 

HowdyDoody's picture

Not one 'journalist' either. Where do the CIA-financed 'presstitutes' store their ill-gotten gains?