Britain: The World’s Tax Evasion Capitol.

by Jerry Alatalo

cropped-suits-333.jpgAlphabet Tax evasion whistleblower Herve Falcioni produced evidence to the French government in 2008 containing the names of thousands of moneyed people from HSBC computers. Of those names, around 6,800 were of residents of Britain. In the seven years since, only one of those thousands has faced prosecution by British tax authorities. That is because Britain is a world “leader” in facilitating tax evasion, accounting for around 50% of the approximate 70-80 tax haven jurisdictions globally.

So, while the United States and European countries maintain crippling sanctions against Iran, Russia, Venezuela and other geopolitically-independent nations, Britain and the other 35-40 tax havens around the planet go on with their merry, massive tax-evading ways. So, all the remaining 6,799 Brits on the list of tax evaders need to do is wait until the statute of limitations runs out, with help from British government officials who have sat on their hands.

HSBC is the world’s second largest bank, based in Britain, and currently experiencing one more in a long line of scandals associated with illegal actions that run the gamut of crimes possible for large banks to commit. The firm supplies training manuals to its staff on how to violate U.S. tax laws for its wealthy clients and get away with it. For a period of ten years HSBC laundered illicit money for a Mexican drug cartel in the range of a billion dollars. The drug cartel has murdered more people than ISIS.

Those who follow non-prosecution of white-collar criminals in the financial industry remember U.S. Attorney General Eric Holder’s statements to Congress where he made a connection between prosecuting and jailing criminal banking executives to the consequences of doing so. Putting white-collar criminals behind bars would “damage the economy”, according to Mr. Holder. Worth noting is that Mr. Holder’s successor, Loretta Lynch, was the prosecutor in charge of the HSBC Mexican drug-money laundering case, and that no HSBC official went to jail.

Returning to the global tax evasion industry, facilitated by the world’s largest accounting and legal firms for decades simultaneously “in secret” while every aware politician knew about it, researchers have shown that more tax evasion “whistleblowers” have become prosecuted than actual tax evaders themselves. In the world’s tax evasion capitol of Britain, Prime Minister David Cameron could easily move for transparency in the Cayman Islands, Bahamas, British Virgin Islands and the remaining crown tax haven jurisdictions, but after seven years since the first massive revelations of their existence hit the international press he has done zero but talk before the media about how wrong tax evasion is.

While low-level criminals languish in prisons, many for drug-related crimes which harmed only themselves, white-collar criminals who’ve inflicted massive harm to the people and economies of their nations and nations around the planet walk the streets as free men and women. Unless those white-collar, “pinstripe mafia” members become prosecuted and jailed for their clearly repetitive criminal actions, a sufficient deterrent effect will not become manifested, and nations around the Earth will continue to lose an estimated combined trillion dollars every year to tax evasion.

Perhaps British Prime Minister David Cameron can meet with Queen Elizabeth, Prince Charles and the Rothschild clan to come up with real solutions that offer precisely that deterrent.

Just saying…


For more information visit the Tax Justice Network’s website:

Storytellers Of Tall Trickle Down Tales.

by Jerry Alatalo

FedAlphabet How many have watched the credit card advertisements which promise “2% cash back” on all purchases without considering interest rates on the cards of 10%, 20% – or more if payments are late? According to those appearing in the short documentary film “Tales From the City”, these types of advertisements are analogous to tales told by corporate “storytellers” – lobbyists, marketers, and public relations firms – working for pharmaceutical, banking/financial services, auto, etc. corporations.

Those who earn their living promoting wealthy individuals/business entities’ interests have a strong propensity to, like messengers of inspirational thinking, “accentuate the positive, eliminate the negative”. Before the global economic crisis of 2007-8, they were the ones who repeated the mantra of “light touch regulation”, while Britain’s Financial Services Authority (FSA) and America’s Securities and Exchange Commission (SEC) almost completely relaxed carrying out their authorities to regulate and prevent the crisis.

The “storytellers” somehow became successful in convincing a lot of people wealth inequality was a good thing and “the right thing to do”. Of course, “greasing the skids” with campaign contributions doesn’t hurt the efforts of the storytellers in getting legislation passed which benefits their wealthy employers. As one man in the film plainly points out: “money is not given to politicians without expectation of something in return”.

This simple process, turbo-charged with the Supreme Court’s decision in Citizens United allowing unlimited spending on campaigns, explains how a few weeks ago Citigroup bankers dealing in derivatives slipped in their language to repeal important Dodd-Frank legislation; in effect putting American taxpayers back on the hook for certain potentially enormous derivatives bets/transactions losses. Despite strong objection and calls to consider the Citigroup provision separately led by Senator Elizabeth Warren of Massachusetts and others, the derivatives provision passed along with the must-pass ‘Cromnibus” spending bill to which it became attached.

While hundreds of top banking managers/executives became prosecuted and sentenced to prison after the Savings and Loan scandal of the 1980’s – a scandal which cost taxpayers 1/70th the losses in 2007-8, exactly zero executives are in jail. This despite overwhelming evidence of massive fraud safely described as “epidemic”. HSBC, the current poster boy for white-collar crime in the financial sector, is now surrounded by one more in a line of scandals resulting in nobody going to jail.

The disturbing thing about HSBC’s current scandal resulting from the release of leaked information about the bank’s facilitating large-scale tax evasion for its wealthy clients is that it took investigative journalists, not government tax authorities, to blow open the case/story. The woman nominated by President Barack Obama to replace Eric Holder as United States Attorney General – Loretta Lynch – has gotten into hot water for her earlier legal efforts in New York to protect HSBC top managers from doing time; settling for fines instead.

The fines never come from the pockets of accountable executives but from the banking institutions who come out far ahead when comparing illegal profits to penalties levied/paid. Often executives of financial institutions which have paid billions in fines end up with increased pay. Eric Holder’s time as head of the Department of Justice has seen zero banking executives convicted and jailed for financial fraud.

Instead of directing trillions of dollars of “quantitative easing” to American citizens to stimulate the economy, the Federal Reserve “bailed out” financial institutions by buying their toxic mortgage-backed securities/derivatives, the cause of the crisis in 2007-8, and executives used that money to buy-back their corporation’s own stock, thereby raising the price on the stock and increasing bonuses and pay for themselves. This explains the record-setting levels on the stock exchange, but the quantitative easing funds rarely become loaned to “main street” businesses for expansion, startups, or continuing operations which grow the real economy and create jobs. Europe is close to emulating America’s quantitative easing model.

So, politicians have become “bought and paid for” then push legislation with actions toward benefitting the corporations and individuals who provide campaign donations. If those actions and laws come in the form of “structural adjustment”, “sequestration” or the commonly known term austerity, so be it. If austerity results in downward-spiraling economic contraction, lower tax revenues, public employee layoffs, higher unemployment, poverty, desperation and suicide, public service cutbacks, privatization and selling off of public utilities/assets, and intensification of those economic problems as time passes, so be it.

If it means inaction on the decades-old, global, trillion-dollar per year tax evasion industry, facilitated by the world’s largest accounting and legal firms, so be it. On the other hand, the people of Greece may leave the Euro zone, take back monetary power through creation of a public utility central bank issuing pre-euro Greek drachma currency, and arrange their economy to serve the people instead of elites who use “storytellers” to advance their interests at the expense of the 99%.

Perhaps soon a completely new, inspirational meaning will come to mind when a man or woman anywhere on Earth uses the term “so be it”.


(Thank you to Press TV Documentaries at YouTube)