Kenneth Rijock

Kenneth Rijock

Saturday, December 10, 2016

CONVICTED FRAUDSTER HAS A COURT-APPOINTED ATTORNEY, BUT HIS SLIPPERY FRIENDS ARE SEEKING DONATIONS FOR ATTORNEY'S FEES


If you have seen any of the pleas for donations, said to be for attorney's fees, for the convicted and imprisoned white-collar career criminal (and ex-general manager of the Marc Harris Ponzi scheme, The Harris organization), Okke Ornstein, be advised that he has a court-appointed attorney in Panama, which is paid for by government funds. He has absolutely no attorney's fees bills to pay, in the three criminal cases presently pending in Panama City; The donation request is a scam.

What is also untrue is the story being hawked by a plethora of radical "journalists.", that Ornstein is innocent of one of the two cases that he is serving 40 months on, in Panama. Don't you believe it for a moment; he not only had competent counsel, he actually appeared at each any every hearing, so for him to cry about due process, is simply the last gasp of a convicted felon, grasping at straws. Innocent journalist ? Don't make me laugh.

By the way, after Ornstein serves his 40 months, he will be deported to his native Netherlands, where he must serve a year in prison, and pay a one million dollar judgment, in yet another case. He also stole thirty five thousand Euros from a Palestinian charity, in the Netherlands; perhaps he will be charged with that case also, while serving his Dutch sentence, in 2020. 

REZA ZARRAB'S ATTORNEYS RESPOND TO GOVERNMENT'S POSITION ON INEVITABLE DISCOVERY


Defense counsel in the Reza Zarrab Iran sanctions violations case has sent a seven-page letter to the Court, containing its argument, and briefing relevant legal authorities, in support of its position, that the Doctrine of Inevitable Discovery* does not apply, to allow information, which they say was illegally seized, into evidence.

The issues argued by counsel:
(1) The Government fails to show that it would have obtained access to Zarrab's email by 'lawful means.'
(2) The Government's allegations are unsubstantiated or irrelevant.
(3) The Court should grant a Franks** hearing to protect the integrity of the judicial process.

Zarrab's motions to suppress have been rescheduled to April 24, 2017.

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* "Evidence that is obtained during the course of an unreasonable search and seizure will not be suppressed if ' that the information ultimately or inevitably would have been discovered by lawful means.'"
** A Franks hearing is a hearing to determine whether a law enforcement officer's affidavit, used to obtain a search warrant that yields incriminating evidence, was based upon false statements, or deliberate or reckless misrepresentations of fact.




PANAMA'S ATTEMPTS AT CONTAINING PANAMA PAPERS DAMAGE FALL SHORT


The Government of the Republic of Panama, anxious to show the financial world that it is engaged in meaningful reform, has announced that it is adopting the recommendations of the controversial Independent Committee, which was hastily formed as a counter to the national reputational damage inflicted by the release of the Panama Papers. The two non-Panamainan members of the Committee resigned, charging that the project was flawed from the beginning, and was being controlled by government officials.

The reforms, which are to be adopted, according to a government statement yesterday, and which appear to fall short of any comprehensive reform, are:

(1) To require that all corporate Registered Agents (resident agents for service of process) be licensed and identified, and subject to supervision and regulation. There's also some vague provision about differentiating them from licensed attorneys, involved in the practice of law.

(2) Strengthen institutions for "greater oversight." Does this means government institutions, or the banking sector, which is rarely, if ever, disciplined for rampant money laundering practices, fraud against clients, and making loans to insiders, which reduces capitalization.

(3) Seek the independence  of the judiciary; the court system is hopelessly corrupt, including the judges, prosecutors, judicial assistants, and even the file clerks. There is no detail supplied as to precisely this will be accomplished.

(4) Implement the country's commitments to exchange of financial information again, no meaningful details are discussed in the report. Panama has been notorious in its dilatory actions regarding exchange with other countries.

Whether all these reforms will actually occur, any how they are to be implements, remains an open question. Meanwhile, Panama's negative image, as a facilitator of corruption, and money laundering, continues to pay out in the media, as more and more Panama Papers documents are released.

Thursday, December 8, 2016

ARMS SHIPMENTS FROM VENEZUELA TO HEZBOLLAH RAISE RISK LEVELS



Iran & Syria are not the only nations sending missiles and rockets to Hezbollah in Lebanon, according to a reliable source in Panama, who has been monitoring them. How does the regime happen to have them, you ask ? That question requires some background information.

Iran has been shipping arms and weapons, including Shabab 3 missiles, to Venezuela for several years, though most Western Hemisphere governments would prefer that this tidbit not become public knowledge, because there might be a call to remove them. The close relationship between Iran's rulers, and the late Hugo Chavez, Venezuela's former dictator, resulted in multiple deliveries of missiles, ostensibly for defense against a feared American invasion, but in truth and in fact, as a stockpile of arms for the future.

The Government of Venezuela, and Hezbollah, have maintained a close relationship for years, and there is a large contingent of Hezbollah agents working inside Venezuela. When Shi'ite Lebanese civilians needed cash to rebuild the homes that were damaged or destroyed during the Second Lebanon War, it was Venezuela that shipped US Dollars into Syria, using civilian business jets. the money was later transported, via surface routes, into Hezbollah-controlled areas of eastern Lebanon, and there after handed out, publicly, to civilians. Most people assumed that it was an Iranian project, and again, those in the US Government that knew about the true origins of the cash, did not release it to the media, so that Venezuela's role as a supporter of terrorism remained out of the limelight.

There are regular shipments of civilian goods, from Venezuelan ports, to Beirut, and hiding arms within those freighters, some of which are registered in Lebanon, is most likely a continuing operation. Whether this information will raise your Country Risk levels on Venezuela, is your decision, but you should consider the Bolivarian Republic a state sponsor of terrorism. 

DON'T LET CHINESE CORRUPTION CRACKDOWN MAKE YOU COLLATERAL DAMAGE



We've all heard the urban legends, about convicted felons, in US prisons, who secure a sentence reduction by inventing criminal conduct, allegedly committed by others, and testifying, under oath, about their supposed first-hand knowledge of the incriminating information, resulting in a prison term for innocent individuals.  How often that occurs in real life, we may never know, but events in China could place your bank clients, and even you, in a nasty Chinese prison, for events you know nothing about, due to China's recent take-no-prisoners corruption investigations.

China's rulers are busy chasing an estimated one million corrupt public officials, and when they are arrested, they are subject to the types of mistreatment we in the West generally call torture, whether physical or mental, until they confess. Confessions are a necessary prerequisite to the closed trial, where a conviction is a foregone conclusion.

Detainees are told they are required to confess, as an obligation,  irrespective of their guilt or innocence, and that their case will not proceed without it. Therefore, you can expect that some subjects will embellish their role, or even create phantom crimes, simply to move their sad cases forward.

Here's where your bank client, and sometimes you as well, come in. The imprisoned official, who is reluctant to name the Western businessmen who richly rewarded his corrupt cooperation, names your client as the source of his ill-gotten gains, and perhaps you and your bank as the facilitator. Maybe your client was guilty, or maybe he was not, but if he (and you) happen to be inside China when the scandal breaks, you both could soon find yourselves incarcerated in a country not exactly known for following the Rule of Law; Your convictions area foregone conclusion, and your embassy cannot extricate you from this nightmare.

The bottom line: Given the new enforcement mode in China, and given the rampant corruption, often freely engaged in by international businessmen,  your clients, who pay bribes & kickbacks, disguised as something else, means that you want to be staying out of China, even on holiday, lest you find yourself arrested for something you did not commit, but some scared and imprisoned PEP says you did.

Wednesday, December 7, 2016

US SUPREME COURT HOLDS FAMILY MEMBER LIABLE FOR INSIDER TRADING EVEN IF NO COMPENSATION PAID FOR THE TIP



The United States Supreme Court, in Salman vs. United States, has held that an individual who supplied inside corporate information to a family member, but who did not receive any compensation therefor, still received a personal benefit for the information, and the tipee is thus liable. Readers who wish to review the decision can review it here. 

Tuesday, December 6, 2016

COSTS OF CAYMAN GANG OF FOUR SCANDAL COULD IMPACT OTHER CLIENTS OF LEON FRAZER & ASSOCIATES INC., AND NORTHLAND WEALTH MANAGEMENT, INC.


Though the two customer lawsuits, pending in the Superior Court of Ontario, against Leon Frazer & Associates, Inc., and Northland Wealth Management, Inc., presently seek only documents and records, given the evidence, and statements, obtained to date, it is reasonable to assume that eventually, suits for ordinary damages, and possibly even aggravated or punitive damages, will be entered, and that those cases will go to trial, and result in judgments against the defendants.

Such judgments could exceed the financial ability of the brokers to satisfy them, especially since the conduct complained of involved intentional torts, and there may not be insurance coverage available, resulting in insolvency, and eventually, bankruptcy of the judgment debtor company. Alternatively, securities licenses may be revoked by the OSC, or through court action, or settlement of a civil or criminal matter, which will also cause eventual insolvency.



Here's how other Leon Frazer, or Northland, clients could be adversely affected: for the purposes of convenience, and to reduce costs, we will probably find that most client securities are being held under "street" name, meaning in the name of the brokerage house. This means that they are not transferred into the customers' names, and that no share certificate in those clients' names is ever issued.

If and when insolvency, resulting in bankruptcy, occurs, at Leon Frazer and/or Northland Wealth Management, clients whose securities are held in the name of the firm, are treated as only general creditors, and when street name assets are assembled, they will be used pro rata, to pay proven and filed claims of creditors. Yes, I know most brokers tell their clients that there are a long list of valid reasons why their securities must remain in street name, but when there is even a remote possibility that the broker may fail, in the future, prudence demands that all clients order that their securities be titled in customer names. Otherwise, the customers, as unsecured creditors, will probably sustain a total loss, when their brokerage house goes into bankruptcy. This can only be avoided by action early on.



Consider this article to be general information, furnished for informational purposes only. Readers who are clients of the two defendant brokers should consult a competent, licensed attorney, knowledgeable in securities matters, to ascertain whether they should take steps now, to protect their interests.