An undercover agent exposed an intricate scheme, in which Belize-based firms conspired to commit securities fraud, money laundering, and tax fraud.
In November 2013, the agent travelled to Belize to meet with Robert Bandfield, a US citizen and founder of all six companies. Bandfield gave a detailed account of how one of his firms, IPC, created sham corporate structures in order to help US citizens evade American laws and regulations, reports The New York Times.
Bandfield told the agent about his own past successes and experiences with clients who sought to transfer money in and out of the US, leaving no trail. Bandfield revealed that he has created 5,000 of these sham companies.
On the same day, the agent attended another meeting, where he inquired about fraudulent manipulation of markets via trade. An executive assured him that it could be arranged with another associated company, as that sort of thing is common practice.
In March, Bandfield said his activities were designed to bypass President Barack Obama’s new law, which requires those living in the US to report any foreign holdings and firms abroad to report to the IRS any accounts held by US taxpayers.
The indictment alleges that between January 2009 and September 2014, the conspirators schemed to defraud new investors, help corrupt clients cheat the IRS, and launder money. More than 100 US citizens and residents allegedly took part in the schemes, reports the FBI.
