Clinton Library
Funded By OffShore Tax Haven
by Mike Flynn 21 Oct 2015
Hillary Clinton is
repeating the Democrat trope about “offshore tax havens” that immorally divert
profits from workers and the taxman. Closing these is a central plank of her
promised agenda as President, she explains in an op-ed
laying out her economic agenda.
Setting aside the economic merits of her plan, the proposal
is a little rich coming from Hillary Clinton.
Just ten years ago, when she and Bill were building the Clinton
Presidential Library, they received a critical short-term loan from
a supporter’s “offshore tax haven.” Like most everything else with the Clinton family,
the rules and policies they promote are for other people.
Or, it’s possible that the Clintons focus their policies on
particular abuses and unethical actions because, having benefited from them,
they have a unique perspective on how these actions work.
When the Clinton Library opened in 2004, it obtained
a $10 million loan from Titanium Acquisition Corporation, a
Delaware-based company owned by Haim Sabin, a Democrat media mogul and close
friend of the Clintons.
The loan was bridge-financing to cover construction-related
expenses as the Library waited to receive pledged donations. It was repaid
several months later, with Sabin forgiving the 2.8 percent interest charged for
the loan.
A subsequent federal investigation found that Titanium was
created by Sabin, and his tax lawyers and accountants, to avoid taxes on his
sale of Fox Family Channel to Disney. Sabin earned $1.7 billion from the sale
of the channel. A Senate Subcomittee investigation found that Titanium used a
shell-corporation in the Isle of Man, a well-known tax haven, for a series of
complex stock transactions to avoid all taxes on the sale.
Testifying before the Senate Subcommittee, Mr. Sabin said
the complicated deal was intended to provide “full tax deferral of the Disney
sale, ad infinitum.”
It is worth reviewing the Senate’s summary of Sabin’s deal
to avoid taxes. It provides
a rare glimpse into the opaque world of high-level, phantom
transactions to avoid taxes:
To review, a phony Isle of Man corporation sold stock it
didn’t own to another phony Isle of Man corporation for money it didn’t have.
The fake stock was lent back with fake cash as security for repayment of the
loan, and the fake loss on the stock price was transferred out to offset real
gains. No real economic activity took place, but one critical thing happened –
a $9 billion paper portfolio was created. This paper portfolio originated with
Jackstones and Barnville, shell operations with no employees, no offices, and
paid-in capital of £2 – that’s about $5 each.
The final step in the POINT scheme was for Barnville to sell
the paper losses to wealthy individuals, including Haim Saban and Robert Wood
Johnson IV. These clients used the paper losses to offset real capital gains.
Mr. Saban used POINT to offset about $1.5 billion in capital gains; Mr. Johnson
offset about $143 million.
Of course the other individual noted in the Senate report is
an heir of the Robert Wood Johnson fortune. The family’s eponymous foundation
is a major donor to countless left-wing causes and organizations.
As Hillary amplifies her campaign rhetoric against “tax
havens” it is worth remembering, then, that the $10 million bridge loan from
Sabin to the Clintons was from proceeds of transactions with an “offshore tax
haven” whose sole purpose was to divert profits and avoid federal taxes.
Sabin’s use of the offshore tax havens to avoid taxes on a
multi-billion dollar sale was so egregious, in fact, that it caught the
attention of the IRS. Sabin was ultimately forced to settle with the IRS,
paying
$250 million to avoid charges of tax evasion. His advisors, however,
were convicted of federal crimes.
In spite of the public revelations of his tax avoidance
scheme, Mr. Sabin remains a close confidante of the Clintons. He and his wife,
Cheryl, have
contributed $10-25 million to the Clinton Foundation. Cheryl Saban
is a voting
member of the Clinton Foundation Board.
In May, Bill Clinton earned
$250,000 for a speech at Univision, the Spanish-language network owned
by Haim Sabin.
A day after Bill
Clinton’s speech was announced,
Sabin hosted a
$2,700 a plate fundraising for Hillary Clinton at his Los Angeles
home.
In her op-ed Tuesday, Hillary Clinton
promised to:
Close the loopholes and end the tax breaks that allow a few
big corporations to profit just by stashing their money in offshore tax havens
with the help of their lawyers and accountants. I’ll encourage companies to
share corporate earnings with their workers, not just their executives.
Clinton, to be fair, is in a particularly special position
to understand how “offshore tax havens” work and how those loopholes can be
“closed.” At the next board meeting of the Clinton Foundation or a future
fundraiser for her Presidential campaign, she can simply ask Haim Sabin about
them.
He has profited handsomely off such transactions and can no
doubt provide her with some real-world experience about them. That is, after he
writes her family another round of checks.
Internal
Revenue Service (IRS)
Charles O.
Rossotti was the commissioner for the Internal Revenue Service (IRS),
and is a director at the Atlantic Council of the United States (think tank).
Note: Open
Society Foundations was a funder for the Atlantic Council of the United
States (think tank), the Bill, Hillary & Chelsea Clinton Foundation,
and the American Constitution Society.
George Soros is the
founder & chairman for the Open Society Foundations, a co-chair,
national finance council for the Ready PAC (Ready for Hillary), and was the
chairman for the Foundation to Promote Open Society.
Foundation
to Promote Open Society was a funder for the Brookings Institution
(think tank), the NAACP Legal Defense & Educational Fund, and the
Aspen Institute (think tank).
Bill,
Hillary & Chelsea Clinton Foundation is a funding arm for the William
J. Clinton Presidential Library.
Denise Rich was a
major contributor for the William J. Clinton Presidential Library, a
funder for the Bill, Hillary & Chelsea Clinton Foundation, and
married to Marc Rich.
William J. Clinton
pardoned Marc Rich in Jan. 2001, is married to Hillary Rodham Clinton,
and the founder of the Bill, Hillary & Chelsea Clinton Foundation.
Hillary Rodham
Clinton was a director at the Bill, Hillary & Chelsea Clinton
Foundation, the U.S. Department of State secretary, and
married to William J. Clinton.
Haim
Saban was a funder for the Bill, Hillary & Chelsea Clinton
Foundation, is the chairman
for Univision Communications Inc., a
benefactor for the Saban Center for
Middle East Policy, and a trustee at the Brookings Institution (think tank).
Saban
Center for Middle East Policy is a policy center at the Brookings Institution (think tank).
Cameron F. Kerry
is a fellow at the Brookings Institution
(think tank), the U.S. Department of
State secretary John F. Kerry brother, and was an associate at Wilmer Cutler Pickering Hale and Dorr.
William J.
Wilkins was a partner at Wilmer
Cutler Pickering Hale and Dorr, and is the chief counsel for the Internal
Revenue Service (IRS).
Charles O.
Rossotti was the commissioner for the Internal Revenue Service (IRS),
and is a director at the Atlantic Council of the United States (think tank).
Neal
S. Wolin is a director at the Atlantic
Council of the United States (think tank), and was an associate at Wilmer
Cutler Pickering Hale and Dorr.
Michael R. Klein
was a partner at the Wilmer Cutler Pickering Hale and Dorr, is a director at the NAACP Legal Defense
& Educational Fund, and a trustee at the Aspen Institute (think
tank).
Eric H. Holder Jr.
was an intern at the NAACP Legal Defense & Educational Fund, a board member for the American
Constitution Society, and handled the pardon request for Marc Rich.
How Eric Holder Facilitated
the Most Unjust Presidential Pardon in American History
By Justin Peters
http://www.slate.com/blogs/crime/2013/07/02/marc_rich_presidential_pardon_how_eric_holder_facilitated_the_most_unjust.htmlMarc Rich’s pardon request was handled by Eric H.
Holder Jr., was pardoned by William J. Clinton in Jan. 2001,
married to Denise Rich, and a co-founder for Marc Rich & Company.
Denise Rich was
married to Marc Rich, a funder for the Bill, Hillary & Chelsea
Clinton Foundation, and a major contributor for the William J. Clinton
Presidential Library.
Bill,
Hillary & Chelsea Clinton Foundation is a funding arm for the William
J. Clinton Presidential Library.
How Eric Holder Facilitated
the Most Unjust Presidential Pardon in American History
By Justin Peters
Since
then, Bill Clinton hasn’t
stopped apologizing for the pardons of Marc Rich and Pincus Green. “It was terrible politics. It wasn't worth the damage
to my reputation,” he told Newsweek in 2002—and, indeed, speculation
was rampant that Rich (and his ex-wife) had bought the pardon by, in part,
donating $450,000 to Clinton’s presidential library.
Clinton denied that the donations had anything to do with the pardon, instead
claiming that he took Holder’s advice
on the matter. Holder, for his part, has distanced himself from the pardons as
well. As the House Government Reform Committee report put it, he claimed that
his support for the pardon “was the result of poor judgment, initially not
recognizing the seriousness of the Rich case, and then, by the time that he
recognized that the pardon was being considered, being distracted by other
matters.”
Pincus Green is a co-founder for Marc Rich &
Company, and was pardoned by William J. Clinton in Jan. 2001.
Henrietta
Holsman Fore is a trustee at the Aspen Institute (think tank), a
member of the Belizean Grove, and was a director at the Clinton Bush
Haiti Fund.
Bill,
Hillary & Chelsea Clinton Foundation was a funder for the Clinton
Bush Haiti Fund.
Belizean_Grove
is the equivalent to the
male-only social group, the Bohemian Club.
Deborah L.
Wince-Smith is a member of the Belizean Grove, and was a member of
the IRS Oversight Board.
IRS Oversight
Board is a citizen’s board for the Internal Revenue Service (IRS).
Henry A. Kissinger was a lifetime trustee at the Aspen
Institute (think tank), is a member of the Bohemian Club, a director at the Atlantic Council of the United
States (think tank), a director at
the American Friends of Bilderberg (think tank), and a 2008 Bilderberg
conference participant (think tank).
Charles O.
Rossotti and is a director at the Atlantic Council of the United States
(think tank), and was the commissioner for the Internal Revenue Service (IRS).
IRS Oversight
Board is a citizen’s board for the Internal Revenue Service (IRS).
Nancy
Killefer was a member of the IRS
Oversight Board, and a senior partner at McKinsey & Company.
McKinsey &
Company was a funder for the Bill,
Hillary & Chelsea Clinton Foundation.
Chelsea V. Clinton
was an employee at McKinsey &
Company, is William J. Clinton &
Hillary Rodham Clinton’s daughter,
and the vice chair for the Bill, Hillary
& Chelsea Clinton Foundation.
Bill,
Hillary & Chelsea Clinton Foundation is a funding arm for the William
J. Clinton Presidential Library.
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