NCJ Number
197681
Journal
Journal of Contemporary Criminal Justice Volume: 18 Issue: 4 Dated: November 2002 Pages: 381-393
Date Published
November 2002
Length
13 pages
Annotation
This article examines patterns of fraud perpetrated by transnational organized crime, with attention to the many permutations of the social networks required to carry out these schemes.
Abstract
In providing a historical perspective on transnational fraud schemes, the authors profile a particularly notorious Bahamian bank, Castle Bank & Trust (Castle Bank), which was formed in Freeport, the Bahamas, on October 8, 1964, for the purpose of avoiding U.S. taxes and laundering crime profits. This case study profiles the bank's two major shareholders and secret directors, both attorneys of renown, Paul Lionel Edward Helliwell and Burton Wallace Kanter. This case study describes the evolving network of corrupt attorneys who were associated with Castle Bank until its demise in 1977. The Castle Bank was part of a Helliwell offshore banking complex that also included the Bank of the Caribbean Ltd. Castle Bank was used to hide much of the proceeds of crime and corruption. A more contemporary case described in this article is the penny-stock fraud perpetrated by Randolph Pace and Kanter. The authors also describe the drug-money laundering done by Swiss American Bank entities, a Panamanian holding company. In discussing ways to counter the schemes of transnational organized crime, this article focuses on a strategy that targets social networks. Using Operation Tradewinds as an example of successful undercover work in the Bahamas, this article recommends that there be an undercover team of at least four people in the capitals of every tax-haven country. Such countries encourage foreigners to conduct certain businesses anonymously with incomes untaxed. Members of the team should be long-time residents of the area who are familiar with the government's local information sources. They must also be familiar with the company and real estate registries as well as significant legislation that deals with banks and trusts in their respective countries. 5 notes and 26 references