OIW Trust Associates LLC

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Wednesday, January 27, 2016

The World’s Favorite New Tax Haven Is the United States

Moving money out of the usual offshore secrecy havens and into the U.S. is a brisk new business.

 Last September, at a law firm overlooking San Francisco Bay, Andrew Penney, a managing director at Rothschild & Co., gave a talk on how the world’s wealthy elite can avoid paying taxes.

His message was clear: You can help your clients move their fortunes to the United States, free of taxes and hidden from their governments.

Some are calling it the new Switzerland. 


Bloomberg Businessweek

Tuesday, January 12, 2016

The police "stole" his house over $40

Civil forfeiture has been around as long as the US has been in existence, but it was rarely used until 1984. That year, Congress enacted a law that introduced the concept of “adoption.” Under this process, when local or state police seize property, they may turn it over to the DOJ for process­ing under federal law. Once the forfeiture is finalized under federal law, the police agency that made the seizure receives up to 80% of the proceeds as a kickback. The DOJ calls this “equitable sharing.”

This process bypasses provisions in state law that would otherwise provide a legal barrier against loss of property without a criminal conviction. It also sidesteps state laws that say forfeited assets be used for specific purposes not related to law enforcement; education for example.
And from a law enforcement standpoint, it’s been uber-successful. According to the Institute for Justice:
  • In 1986, the AFF took in $93.7 million in revenue from federal forfeitures. By 2014, annual deposits had reached $4.5 billion—a 4,667% increase.

  • The forfeiture funds of the DOJ and Treasury Department together took in nearly $29 billion from 2001 to 2014, and combined annual revenue grew 1,000% over the period. 
And that’s just the tip of the iceberg. In 41 states, police and prosecutors can keep up to 100% of the assets they seize in civil forfeitures, without getting the feds involved. This is “policing for profit” in its purest form—and its use is exploding in these days of budget cutbacks. While there’s no nationwide tally of how much property state, local, and county police authorities seize each year, Washington, D.C. alone confiscated assets worth $254 million in 2012.

To understand how civil forfeiture works, consider the case of Chris Sourovelis, who has never been arrested, accused, or convicted of any crime. Yet in 2014, the City of Philadelphia confiscated his home.

Chris’s problems began when his son was caught selling $40 worth of illegal drugs outside the family home. Since his son had no arrest record, the court didn’t sentence him to prison—it sent him to rehab.

But the arrest put Philadelphia’s civil forfeiture machine in motion. Not long after the arrest, and with no notice, armed Philadelphia police barged into the family home, evicted Chris’s family, and confiscated the house. This was possible because civil forfeiture laws allow the government to forfeit property that “facilitate” a crime, no matter how tenuous the connection between the property and the crime.

Police alleged that since Chris’s son lived in the home, the property itself facilitated his drug offense. Even though police charged neither Chris nor his son with any crime, the city confiscated his home. He only got it back with the help of the Institute for Justice, a libertarian-oriented organization that litigates on behalf of individuals and companies trampled by the government.

Since the DOJ has ended equitable sharing, a big chunk of the loot that cities and states seize under local or state forfeiture laws won’t be coming back to the seizing agency. They can still seize property for processing under federal law, but at least for the time being, they won’t get any of it back.

Here’s how it happened: As part of the last-minute budget deal cobbled together last month, Congress withdrew more than $1.2 billion from the AFF. It used the money to pay for spending increases elsewhere in the budget.
Keep in mind that until 1984, all assets forfeited by the feds were deposited with the US Treasury and not used to reward seizing agencies. But the sums of money raised through forfeiture are so vast that the DOJ’s decision to end equitable sharing set off an orgy of recriminations and outrage…not unlike bullies squaring off in the schoolyard over a handful of cookies.

The National Sherriff’s Association was one of the first organizations to weigh in against the new policy. It released a statement that it was:
“...shocked and disappointed by the [DOJ’s] decision to suspend the equitable sharing of Asset Forfeiture Program funds to state, local, and tribal law enforcement. This is yet another blow to those who work every day to prevent terrorism and crime in our communities… The protective capabilities of our nation are being downgraded at every level in never ending attacks on law enforcement.”

Right. Just like Chris Sourovelis was a criminal or a terrorist.

 The US is almost unique in the world with its civil forfeiture laws. Almost every other country equates the confiscation of property as punishment. And their laws require that a person who’s being punished should first be arrested, tried, and convicted of an actual crime.

But not the US. Here, civil forfeiture, in all its malodorous varieties, is an essential part of policing at every level of law enforcement—local, state, and federal.

In the end, the suspension of equitable sharing probably won’t make much of an impact. The DOJ is under immense pressure to resume it, although seizing agencies might not get back 80% of the loot they confiscate. And states can always amend their laws to make them more forfeiture friendly, so the cops can keep 100% of what they seize.

How can you prevent police “forfeiture squads” from confiscating your wealth? Keep property away from government bullies by keeping the largest portion of it in an irrevocable trust. With the civil forfeiture racket booming, I can’t think of a better reason for NOT OWNING IT.

Source: The Nestmann Group

Friday, January 1, 2016

Half a Million Bank Jobs Have Vanished Since 2008 Crisis: Chart

Staff reductions at some of the world’s biggest banks are far from over. Deutsche Bank AG, which has held employment close to its 2010 peak, plans to slash 26,000 positions by 2018, following a trend that began with the financial crisis.

Announced cuts in the fourth quarter total at least 47,000, following 52,000 lost jobs in the first nine months of 2015. That would bring the aggregate figure since 2008 to about 600,000. UniCredit SpA says it will eliminate about 18,200 positions. Citigroup Inc., which has reduced its workforce by more than a third, plans to eliminate at least 2,000 more jobs next year.

Source-Bloomberg Business