CONFESSIONS OF A
MONEY LAUNDERER by Kenneth Rijock
MONEY LAUNDERER by Kenneth Rijock
Financial Crime Consultant, for World-Check
Confessions of a Money Launderer - Part 6
5 November 2006
Ed passed me the name of a prominent East Caribbean lawyer, Peter Hendrix,* who was his trusted facilitator in money laundering matters. I knew that man; I had actually visited him two years prior, when I inspected a factory site in the Caribbean to determine its suitability for a corporate client who manufactured industrial cleaning agents. However, Peter was much more than a just a lawyer, as I was about to find out.
He was definitely not your typical East Caribbean solicitor. Mr. Hendrix was the constitutional advisor to her Majesty's government in the British Dependent Territory where he moved illicit cash for clients, a prominent role in a country which perhaps had a dozen lawyers. But next door, in newly independent St. Kitts, he held infinitely more impressive titles :
Had he help draft and enact their new Companies Act, which improved upon the Swiss bank secrecy laws by adding the additional lawyer of corporation secrecy ? I do not know, but he certainly knew each and every provision, and had a close relationship with the local financial institution across the street from his law office. I heard later that he owned 10% of the bank, but was never able to confirm it.
The adjacent bank we used, which was entirely locally owned, had no US branch, agency or representative office, meaning that US courts or regulators had little chance at that time of legally penetrating its bank secrecy policies and procedures. Of course, it did have that all-important correspondent banking relationship with a major US bank in Manhatten.
Its president, who had spent a dozen years at a Caribbean branch of a major US bank, was extremely happy to take multi-million dollar deposits with nary a question asked as to source of funds. After all, financial institutions in remote backwaters of the remnants of the British Empire didn't exactly have huge deposits to brag about.
I soon found myself in his spacious island chambers, attended by his inordinately large staff of secretarial help, forming offshore companies, one or more for each smuggling client. The secretaries would hold one share of stock in the new companies; the clients' interest as beneficial owners did not appear officially.
Unofficially, like any good lawyer, I had Hendrix enter the client's names somewhere in his files, because if anything happened to me, the clients' identities had to be known to the corporate services staff inside the law firm. This being accomplished, I returned to Miami, to plan the next phase of my operation, the employment of money laundering's most primitive but most effective method, bulk cash smuggling. It was time for placement of the clients' proceeds of crime.
Perhaps it might be good at this point to digress, and analyse exactly why I was prepared to tempt the fates, and run the risk of a long prison sentence. Looking at it objectively now, it was certainly not only foolish, but downright dangerous. What professional willingly puts hinself in the line of fire ?
When I moved into Ed's spare bedroom, the far Right was in power in the US, interest rates were in double digits, America had just endured a major petrol shortage, and we were only a couple of years removed from a brutal war in Southeast Asia that may of us had personally participated in.
Added to that was the general perception, mine included, that the government's war on drugs was misplaced, that it was a moral issue, and that decriminalisation deserved study. The blase attitude towards recreational drugs pervaded American culture at that time, as the youth of the 1960s, who had by now become professionals and educators, became decision makers in our society, but did not subscribe to its conservative beliefs. My personal views were my reason to break the law.
So there I was, mentally outside the mainstream. Anyone who visited my room in those days was usually taken aback by my powerful decor; A South Vietnamese flag hung on the wall, a camouflage comforter covered the bed, and the closet contained, among other things, a .45 pistol. a vintage Chinese-made rifle with the same bayonet as appears on the AK-47, plenty of ammunition and, oh yes, Ed's scale that he used to weigh those kilograms of cocaine being shipped out, after being cut with inositol. With the ceiling fan slowly turning inside the mosquito netting, it was a bigger dose of reality than any war movie of the period.
I am told that the malaise which the French suffered during the 1950s was partially as a result of losing both their own Indochina War and the Algerian conflict. Clearly, most Americans were not in a positive mood after the loss of 58,000 of their youth in Southeast Asia.
Many of those who took to drug smuggling in the early years of the "cocaine cowboys" had served in Vietnam, or in the Central Intelligence Agency's secret war against Castro. Nearly all has suffered a loss of innocence as a result, and a deep distrust of the same authority they had served so obediantly in the past.
Ironically, arrayed against them in America's war on drugs were many others with the same life experiences. Soldiers who has become cops and agents. The difference was that this group had chosen to stay within the system. It made for interesting encounters, both in the field and in the courtroom.
The offshore companies were formed, the groundwork in place. It's time to activate the operation.
NEXT WEEK: Learjets with cash cargo, outbound, headed south.
____________________________________________________________________________________________________ * Obviously,not his real name, as a courtesy to his next of kin.
- Foreign Minister
- UN Ambassador
- US Ambassador
- OAS Ambassador
- Minister Plenipotentiary
Had he help draft and enact their new Companies Act, which improved upon the Swiss bank secrecy laws by adding the additional lawyer of corporation secrecy ? I do not know, but he certainly knew each and every provision, and had a close relationship with the local financial institution across the street from his law office. I heard later that he owned 10% of the bank, but was never able to confirm it.
The adjacent bank we used, which was entirely locally owned, had no US branch, agency or representative office, meaning that US courts or regulators had little chance at that time of legally penetrating its bank secrecy policies and procedures. Of course, it did have that all-important correspondent banking relationship with a major US bank in Manhatten.
Its president, who had spent a dozen years at a Caribbean branch of a major US bank, was extremely happy to take multi-million dollar deposits with nary a question asked as to source of funds. After all, financial institutions in remote backwaters of the remnants of the British Empire didn't exactly have huge deposits to brag about.
I soon found myself in his spacious island chambers, attended by his inordinately large staff of secretarial help, forming offshore companies, one or more for each smuggling client. The secretaries would hold one share of stock in the new companies; the clients' interest as beneficial owners did not appear officially.
Unofficially, like any good lawyer, I had Hendrix enter the client's names somewhere in his files, because if anything happened to me, the clients' identities had to be known to the corporate services staff inside the law firm. This being accomplished, I returned to Miami, to plan the next phase of my operation, the employment of money laundering's most primitive but most effective method, bulk cash smuggling. It was time for placement of the clients' proceeds of crime.
Perhaps it might be good at this point to digress, and analyse exactly why I was prepared to tempt the fates, and run the risk of a long prison sentence. Looking at it objectively now, it was certainly not only foolish, but downright dangerous. What professional willingly puts hinself in the line of fire ?
When I moved into Ed's spare bedroom, the far Right was in power in the US, interest rates were in double digits, America had just endured a major petrol shortage, and we were only a couple of years removed from a brutal war in Southeast Asia that may of us had personally participated in.
Added to that was the general perception, mine included, that the government's war on drugs was misplaced, that it was a moral issue, and that decriminalisation deserved study. The blase attitude towards recreational drugs pervaded American culture at that time, as the youth of the 1960s, who had by now become professionals and educators, became decision makers in our society, but did not subscribe to its conservative beliefs. My personal views were my reason to break the law.
So there I was, mentally outside the mainstream. Anyone who visited my room in those days was usually taken aback by my powerful decor; A South Vietnamese flag hung on the wall, a camouflage comforter covered the bed, and the closet contained, among other things, a .45 pistol. a vintage Chinese-made rifle with the same bayonet as appears on the AK-47, plenty of ammunition and, oh yes, Ed's scale that he used to weigh those kilograms of cocaine being shipped out, after being cut with inositol. With the ceiling fan slowly turning inside the mosquito netting, it was a bigger dose of reality than any war movie of the period.
I am told that the malaise which the French suffered during the 1950s was partially as a result of losing both their own Indochina War and the Algerian conflict. Clearly, most Americans were not in a positive mood after the loss of 58,000 of their youth in Southeast Asia.
Many of those who took to drug smuggling in the early years of the "cocaine cowboys" had served in Vietnam, or in the Central Intelligence Agency's secret war against Castro. Nearly all has suffered a loss of innocence as a result, and a deep distrust of the same authority they had served so obediantly in the past.
Ironically, arrayed against them in America's war on drugs were many others with the same life experiences. Soldiers who has become cops and agents. The difference was that this group had chosen to stay within the system. It made for interesting encounters, both in the field and in the courtroom.
The offshore companies were formed, the groundwork in place. It's time to activate the operation.
NEXT WEEK: Learjets with cash cargo, outbound, headed south.
____________________________________________________________________________________________________ * Obviously,not his real name, as a courtesy to his next of kin.
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
Read more in this exciting series
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28 September 2008
20 September 2008
15 September 2008
15 June 2008
8 June 2008
1 June 2008
26 May 2008
19 May 2008
12 May 2008
4 May 2008
27 April 2008
20 April 2008
13 April 2008
31 March 2008
18 March 2008
4 March 2008
25 February 2008
16 February 2008
10 February 2008
3 February 2008
27 January 2008
20 January 2008
14 January 2008
6 January 2008
16 December 2007
9 December 2007
1 December 2007
25 November 2007
18 November 2007
11 November 2007
3 November 2007
27 October 2007
21 October 2007
14 October 2007
7 October 2007
1 October 2007
23 September 2007
16 September 2007
3 June 2007
27 May 2007
21 May 2007
6 May 2007
30 April 2007
22 April 2007
15 April 2007
8 April 2007
2 April 2007
24 March 2007
19 March 2007
12 March 2007
5 March 2007
25 February 2007
19 February 2007
12 February 2007
4 February 2007
28 January 2007
22 January 2007
15 January 2007
7 January 2007
2 January 2007
16 December 2006
10 December 2006
3 December 2006
27 November 2006
19 November 2006
11 November 2006
5 November 2006
29 October 2006
22 October 2006
16 October 2006
9 October 2006
2 October 2006
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