The Khrapunovs deny the charges: Tom Burgis, “Dirty Money: Trump and the Kazakh connection,” Financial Times, October 19, 2016, https://www.ft.com/content/33285dfa-9231-11e6-8df8-d3778b55a923.
accused, along with associates, of misappropriating $6 billion: Emma Farge and Martin de Sa’Pinto, “Swiss Interrogate Kazakh Oligarch Ablyazov’s Extended Family,” Reuters, August 7, 2013 http://www.reuters.com/article/us-swiss-ablyazov-khrapunov-idUSBRE9760XG20130807; and “Hogan Lovells Secures Success in UK Supreme Court for BTA Bank in Ablyazov Fraud Case,” October 22, 2015, https://www.hoganlovells.com/news/hogan-lovells-secures-success-in-uk-supreme-court-for-bta-bank-in-ablyazov-fraud-case.
BTA lists more than 786 offshore companies in which Ablyazov had an interest: List of Assets in which MKA has an Ownership Interest, BTA Bank website, http://bta.kz/files/AssetslistnewBTAsite.pdf
suspected their involvement in prostitution: Bird, Sentek, and Shaw, “Football Leaks.”
sued ENRC over the disposition of $220 million: Margareta Pagano, “Zamin Ferrous and ENRC Heading for Bitter High Court Battle,” Independent, December 10, 2014, http://www.independent.co.uk/news/business/news/zamin-ferrous-and-enrc-heading-for-bitter-high-court-battle-9916113.html.
the Trump International Hotel and Tower Fort Lauderdale: Michael Sallah and Michael Vasquez, “Failed Donald Trump Tower Thrust into GOP Campaign for Presidency,” Miami Herald, March 12, 2016, http://www.miamiherald.com/news/politics-government/election/article65709332.html.
any experience getting visas for Iranians: Email from Marie Williams to Sara Montenegro, June 26, 2008.
the billionaire became embroiled in a nasty divorce: Will Fitzgibbon, “How the One Percenters Divorce: Offshore Intrigue Plays Hide and Seek with Millions,” International Consortium of Investigative Journalists, April 3, 2016, https://panamapapers.icij.org/20160403-divorce-offshore-intrigue.html.
plans were approved to tear down the mansion: Michael Crowley, “Trump and the Oligarch,” Politico, July 29, 2016, http://www.politico.eu/article/donad-trump-and-the-oligarch-russia-dmitry-rybolovlev-house-vladimir-putin-us-presidential-election-america-2016/.
Azerbaijan’s largest taxi and bus companies: Nushabe Fatullayeva, “Azerbaijan: Insider Deals Thrive in Ministry,” OCCRP, April 1, 2013, https://www.occrp.org/en/investigations/1907-azerbaijan-insider-deals-thrive-in-ministry.
they were stopped: “Police Prevent Staff of Opposition Newspaper from Working,” Reporters Without Borders, August 3, 2010, https://rsf.org/en/news/police-prevent-staff-opposition-newspaper-working.
“is notoriously corrupt even for Azerbaijan”: https://wikileaks.org/plusd/cables/09BAKU175_a.html.
mistakenly released election results: Max Fisher, “Oops: Azerbaijan Released Election Results Before Voting Had Even Started,” Washington Post, October 9, 2013, https://www.washingtonpost.com/news/worldviews/wp/2013/10/09/oops-azerbaijan-released-election-results-before-voting-had-even-started/?utm_term=.6d3f537e3bfd.
Aliyev’s daughters, Leyla and Arzu: Miranda Patrucic, Eleanor Rose, Irene Velska, and Khadija Ismayilova, “Azerbaijan First Family’s London Private Enclave,” OCCRP, May 10, 2016, https://www.occrp.org/en/panamapapers/azerbaijan-first-familys-london-private-enclave/.
“Trump International Hotel & Tower Baku represents the unwavering standard of excellence”: “Trump Hotel Collection Announces Trump International Hotel,” PR Newswire, November 4, 2014, http://www.prnewswire.com/news-releases/trump-hotel-collection-announces-trump-international-hotel—tower-baku-281425361.html.
every element from the wood paneling to the landscaping: Adam Davidson, “Donald Trump’s Worst Deal,” New Yorker, March 13, 2017, http://www.newyorker.com/magazine/2017/03/13/donald-trumps-worst-deal.
contractors were apparently paid in sacks of cash: Ibid.
The Alliance spent more than $12 million showering cash on politicians: Ilya Lozovsky, “How Azerbaijan and Its Lobbyists Spin Congress,” Foreign Policy, June 11, 2015, http://foreignpolicy.com/2015/06/11/how-azerbaijan-and-its-lobbyists-spin-congress/.
with Senator John McCain and House minority leader Nancy Pelosi: Kevin Sullivan, “For A President Trump, Global Real Estate Deals Present Unprecedented Gray Areas,” Washington Post, May 30, 2016, https://www.washingtonpost.com/politics/for-a-president-trump-global-real-estate-deals-present-unprecedented-gray-areas/2016/05/30/beac0038-15fa-11e6-aa55-670cabef46e0_story.html?utm_term=.14613dce37fe.
Burton never received his final year’s salary: “Azerbaijan’s Key Lobbyist in Washington, Dan Burton, Refuses to Protect Country’s Interests Citing Nonpayment,” Panorama.am, March 3, 2016, http://www.panorama.am/en/news/2016/03/03/Dan-Burton/1538734.
She was a big fan and supporter of Erdoğan: “Diken Reports Call Between President-Elect Trump and President Erdogan of Turkey,” Hsquared Magazine, November 11, 2016, http://hsquaredmagazine.com/2016/11/11/diken-reports-call-between-president-elect-trump-and-president-erdogan-of-turkey/.
The conjoined forty-story office and residential towers: “Real Estate Portfolio: Istanbul, Turkey,” http://www.trump.com/real-estate-portfolio/istanbul/trump-towers/.
“I was very excited when I met Mehmet Ali Yalçındağ”: “Trump Towers Istanbul,” Istanbul View, http://www.istanbulview.com/trump-towers-to-open-luxury-shopping-mall-in-istanbul/.
“beyond partners”: Kevin Sullivan, “Trump’s Foreign Network,” Washington Post, January 13, 2017, http://www.washingtonpost.com/sf/world/2017/01/13/trumps-foreign-network/?utm_term=.8c58c6f5e967.
a $2.5 billion fine for unpaid taxes: “IPI Troubled by Tax Case Targeting Turkey Media Owner,” International Press Institute, July 8, 2016, https://ipi.media/ipi-troubled-by-tax-case-targeting-turkey-media-owner/.
“the largest oil distribution company in Turkey”: General Comments, Petrol Ofisi International Oil Trading Ltd., September 23, 2003.
its principal beneficiary was listed as Imre Barmanbek: Source of Funds/Wealth Declaration, November 5, 2015.
how Yalçındağ worked hard to ingratiate himself with Erdoğan: Amberin Zaman, “WikiLeaks Dump Casts Rare Light on Erdogan Inner Circle,” Al-Monitor, December 6, 2016, http://www.al-monitor.com/pulse/originals/2016/12/erdogan-albayrak-wikileaks.html#ixzz4m5CoQZu.
a complete list of Turks and their companies: https://wikileaks.org/berats-box/emailid/27681.
EPILOGUE
the partners’ original idea was to sell the firm: Author interview with Ramón Fonseca, Panama City, August 2016.
the British Virgin Islands fined the firm $440,000: British Virgin Islands Financial Services Commission, Enforcement Action, http://www.bvifsc.vg/Publications/EnforcementAction/tabid/378/ctl/EnforcementSummary/mid/1188/actionId/17069/language/en-AU/Default.aspx.
Company incorporations in the jurisdiction dropped 30 percent: “British Virgin Islands: Have They Cleaned Up Since the Panama Papers?,” Transparency International, October 14, 2016, https://www.transparency.org/news/feature/british_virgin_islands_have_they_cleaned_up_since_the_panama_papers.
“They should build a statue to me”: Author interview with Ramón Fonseca, Panama City, December 2016.
UBS still had offshore companies registered with Mossfon: Author interview with Adrian Simon, Geneva, September 2016.
In May, Elliott Management sued the Panamanians: Taos Turner and Santiago Pérez, “Paul Singer’s New Target: Mossack Fonseca,” Wall Street Journal, June 7, 2016, https://www.wsj.com/articles/paul-singers-new-target-mossack-fonseca-1465326566.
the firm paid about $3.3 billion in bribes: Paulo Prada, “Brazil’s Odebrecht Paid $3.3 Billion in Bribes over a Decade: Reports,” Reuters, April 15, 2017, http://www.reuters.com/article/us-brazil-corruption-odebrecht-idUSKBN17H0MW; and Rolando Rodríguez B., “Questions Answered About Odebrecht Bribes,” La Prensa, June 9, 2017, http://www.prensa.com/in_english/perdio-juego-Odebrecht_21_4776482306.html.
gave an impromptu press conference: Catherine Perea, “Fonseca Mora se desvincula de caso Odebrecht y señala a Varela,” Telemetro, February
9, 2017, http://m.telemetro.com/nacionales/Fonseca-Mora-desvincula-Odebrecht-Varela_0_998000997.html#.
on bail of half a million dollars each: “Mossack and Fonseca Released from Jail,” Panama Today, April 24, 2017, http://www.panamatoday.com/panama/mossack-and-fonseca-released-jail-4176.
“We were one of a couple of thousand outfits”: Author interview with Jürgen Mossack, June 2017.
to identify nearly thirty-five hundred individuals and companies: David Pegg, “Panama Papers: Europol Links 3,500 Names to Suspected Criminals,” Guardian, November 30, 2016, https://www.theguardian.com/news/2016/dec/01/panama-papers-europol-links-3500-names-to-suspected-criminals.
“Wrong Solution to the Wrong Problem”: Email from Charles Lewis to Peter Bale et al., August 24, 2016.
a joint press release that CPI would spin off ICIJ: “Center for Public Integrity to Spin Off ICIJ,” International Consortium of Investigative Journalists, October 20, 2016, https://www.icij.org/blog/2016/10/center-public-integrity-spin-icij.
Bale was leaving CPI: “Change of Leadership at the Center for Public Integrity,” Center for Public Integrity, November 15, 2016, https://www.publicintegrity.org/2016/11/15/20470/change-leadership-center-public-integrity.
“incorporations are thriving”: Jürgen Mossack, “Tax Avoidance and Tax Evasion by Clients,” From the Horse’s Mouth (Jürgen Mossack’s Letters from Preventive Detention), April 10, 2017, http://mossfonmedia.com/wp-content/uploads/2017/05/From-the-Horses-Mouth-10.April_.2017.pdf.
ACKNOWLEDGMENTS
In May 2015, Michael Hudson, a senior editor at the International Consortium of Investigative Journalists, told me that ICIJ had launched a project for which I might be a good fit. He wouldn’t reveal the details on the phone. Instead, he encouraged me to travel to Washington, DC, to meet with Gerard Ryle and Marina Walker, ICIJ’s director and deputy director.
On the walk to lunch, Ryle told me about the Prometheus Project, a massive data leak ICIJ was in the process of receiving. The material afforded an unprecedented view into the secrecy world. It had the potential to topple governments. By meal’s end I was on board, not realizing the subject would consume my life for more than two years.
What followed was one of the most enjoyable professional experiences I’ve had in twenty-five years as a journalist. The material was endlessly fascinating. For someone governed by his curiosity, there was a new find to be discovered around every corner. But what elevated it beyond a reporting gold mine was the collaboration.
I soon found myself working with some of the best investigative journalists from around the world. Most already knew one another from previous ICIJ collaborations. They were open and helpful and as excited by the material as I was. We were united by a common purpose and a shared creed. We all believed we were toiling in the public interest. The material we uncovered was information an informed citizenry needed to have. The challenge was more difficult for some than others. Many of the reporters faced considerable obstacles at home, including hostile governments, a skeptical public, and economic pressures.
In the end, more than 370 journalists labored on the Panama Papers. They worked in nearly three dozen languages. Without their effort, this book would not be possible. They tilled many of the fields before I got to them. While I cannot name all who deserve to be mentioned, I am grateful for the work of each and every one.
Despite schedules that would kill normal people, the incredible folks behind ICIJ found time to speak with me for this book and amiably tolerated my extensive follow-up questions. In particular, a grateful thank-you to Gerard Ryle, Marina Walker Guevara, Michael Hudson, Mar Cabra, Rigoberto Carvajal, Matthew Caruana Galizia, Emilia Díaz-Struck, Alexa Olesen, Giannina Segnini, Sheila Coronel, Yuen-Ying Chan, Michael Rothberg, Charles Lewis, Bill Buzenberg, Peter Bale, Hamish Boland-Rudder, Will Fitzgibbon, Cécile Schilis-Gallego, Martha Hamilton, and Miguel Fiandor.
A special thank-you to Ryan Chittum, a crackerjack investigative reporter, who provided invaluable research help.
The Panama Papers would not have been possible without the courageous decision of the editors and reporters at Süddeutsche Zeitung to share the leaked files with hundreds of reporters. They made everything that came afterward possible and deserve special recognition.
One of the unfortunate aspects of a secret leak investigation is the inability to approach the subjects early in the project. Despite having access to more than 11.5 million documents from Mossack Fonseca, when we published on April 3, 2016, I still felt as if the full story of the firm and its principals was incomplete. Who were the human beings beneath the caricatures? What did they make of the secrecy world and their place within it? What was it like to build a global business and then watch it unravel? Filling in those missing pieces is part of the reason I undertook this book.
Both Ramón Fonseca and Jürgen Mossack agreed to speak with me in the belief that I was truly interested in trying to understand their perspective. While I am sure they will not agree with everything contained herein, I hope their confidence was not misplaced. My thanks also to Adrian Simon and Rosemarie and Keith Flax.
I traveled to six different countries in the process of writing this book. Along the way, many people took time to educate me about the secrecy world and the journalism around it.
In the British Virgin Islands, Ermin Penn, Martin Kenney, and Penny Haycraft all provided invaluable insights on their lovely tropical home.
Across the Atlantic in volcanic Iceland, Jóhannes Kr. Kristjánsson was a constant resource. Special thanks also to Brynja Gísladóttir, Ólafur Hauksson, Bardi Stefánsson, Aðalsteinn Kjartansson, and Grímur Jón Sigurðsson.
In Switzerland, Titus Plattner and Oliver Zihlmann not only provided invaluable information about their country and their journalistic exploits but kindly opened their homes to me. Thanks also to the other stalwarts of the Tamedia crew, Alexandre Haederli and Catherine Boss, for their time and insights.
Additional thanks in Europe to Edouard Perrin, David Leigh, John Christensen, Eva Joly, Fredrik Laurin, Sven Bergman, Sébastien Heymann, James Palmer, Ron Sofer, Jan Martínez Ahrens, Jan Strozyk, and Petra Blum.
In Panama, Rita Vásquez and Scott Bronstein were indefatigable in their assistance. Also thanks to Rolando Rodríguez, Rodrigo Noriega, Rafael Pérez Jaramillo, Ramón Ricardo Arias, and Gian Castillero. I owe a second trip to Panama to an invitation to speak at the 2016 International Anti-Corruption Conference. On the sidelines of the conference, Mónica Almeida, Hugo Alconada Mon, Paul Radu, and Nicholas Shaxson were all generous with their time and input.
Closer to home, John Gordon was thoughtful, patient, and forthright. Joe West was kind enough to rummage through memories of trials and triumphs he had tried to forget. Ezra Chowaiki provided keen-eyed observations of the art market. Additional thanks to Keith Fogg, Brad Berman, and Frank Smyth.
I was extremely fortunate to be able to speak with Jack Blum, Elise Bean, and David Weber for this book. They are walking encyclopedias of the secrecy world, money laundering, and efforts to regulate such activities. I only wish I had more time to learn at their feet.
Much of the good that is in this book comes from the folks listed above. Any errors I reserve for myself.
I also want to thank my talented wife, Eve, who, in addition to keeping me sane, helped with everything from research to editing. Thanks also to my agents David Patterson and Howard Sanders and to my lawyer George Sheanshang. Paul Golob at Henry Holt was an enthusiastic and patient editor. And to the Park Slope Food Coop, thank you for the forbearance.
There are a number of people I cannot mention because they spoke to me on condition of anonymity. You know who you are. I am grateful for your trust and insight.
None of the leak investigations detailed in this book would have been possible without people turning the information over to reporters because they felt the public needed to know. These leakers risked everything. They are the true heroes of this narrative. Chief among them is the person or persons
known as John Doe. Thank you.
INDEX
The index that appeared in the print version of this title does not match the pages in your e-book. Please use the search function on your e-reading device to search for terms of interest. For your reference, the terms that appear in the print index are listed below.
Abacha, Sani
Ablyazov, Mukhtar
Absolute Group, LLC
Abu Dhabi
Adham, Kamal
Africa
Agalarov, Aras
Agalarov, Emin
Akara Building
Alaska
al-Assad, Bashir
Albayrak, Berat
Alconada Mon, Hugo
Alemán, Cordero, Galindo & Lee
Aliyev, Heydar
Aliyev, Ilham
Almeida, Mónica
al-Thani, Mohammed bin
Alumnia, Joaquín
Amazon
American Express
Amnesty International
Amunategui, Patricia
Antilles
antiquities
Antón, Juan Eljuri
Apprentice, The
Arab Spring
Argentina
Panama Papers and
Arias, Arnulfo
Arias, Harmodio
Arif, Refik
Arif, Tevfik
arms trafficking
Árnason, Sigurjón
Arosemena, Florencio
Arosemena, Noriega & Castro
art trade
auctions
freeport concept
tax havens and
Asher, James
Assange, Julian
Australia
Austria
Aviva Holdings Limited
Azerbaijan
Azerbaijan America Alliance
Backslash Distributors
Báez, Lázaro
Bahamas
mafia in
Mossfon operations
tax havens
Bahamas Software
Baku
Bale, Peter
banking
Bank Rossiya network
Commerzbank raid
Germany
Secrecy World Page 38
