Friday, April 8, 2016

Panama Papers reveals EPN friend and govt. contractor moving money to hidden offshore accounts

Posted by DD republished from ICIJ and Forbes

First of all, I want to apologize to our readers in being so slow in getting the story up about the Panama Papers and  what they revealed about Mexican Businessman  Juan Armando Hinojosa Cantú, described as Mexican President Enrique Peña Nieto’s “favorite contractor.”

I started working  on this story  last Sunday, the 3rd of April, the day the leak went public.   I spent between 30 and 40 hours this week researching, reading new stories  and writing as more information was made public.    

About 6AM this morning as I was writing the last few paragraphs that would have it ready to publish disaster struck.   The whole “text box” with the draft went blank.   The story was gone.   I tried to retrieve it and even contacted Google and asked the question on the web as to how to retrieve it.   No luck.

In my opinion, the real stories to be gleaned from the Panama Papers is in the details.   That is what I tried to do in my story – where the leaks came from, the dates of the offshore transfers in relation to pending scandals,  who the major players were (including Hinojosa’s mother and mother-in-law) , possible motivations for the offshore transfers to secret bank accounts, etc. 

Rather than try to re-write my story,  what I am presenting today is mostly excerpts from what I consider some of the best stories that in effect give a summary of what Panama Papers is and some of the material that deals with possible corruption in Mexico.  

It should be emphasized that  in none of the material that I have read would be proof that Hinojosa Cantu committed any crime.   But taken in context of his relationship, both business and personal,  raises some eyebrows and is evidence that justifies further investigation.


I am confident that from the 11 ½ million files constitute Panama Papers there will be much more to report that will be of interest to our readers.    Next time I will write the stories in such a manner that I know I have a backup.

The following are excerpts from the International Coalition of Investigative Journalist (ICIJ) that give a summary of the Panama Papers and material about Armando Hinojosa Cantu:

  Leaders, criminals, celebrities

"A giant leak of more than 11.5 million financial and legal records exposes a system that enables crime, corruption and wrongdoing, hidden by secretive offshore companies.

The Panama Papers: An Introduction

"Behind the email chains, invoices and documents that make up the Panama Papers are often unseen victims of wrongdoing enabled by the shadowy offshore industry.



“A massive leak of documents exposes the offshore holdings of 12 current and former world leaders.  The leak also provides details of the hidden financial dealings of 128 more politicians and public officials around the world.

. The cache of 11.5 million records shows how a global industry of law firms and big banks sells financial secrecy to politicians, fraudsters and drug traffickers as well as billionaires, celebrities and sports stars.

They also include at least 33 people and companies blacklisted by the U.S. government because of evidence that they’d been involved in wrongdoing, such as doing business with Mexican drug lords, terrorist organizations like Hezbollah or rogue nations like North Korea and Iran.

The leaked data covers nearly 40 years, from 1977 through the end of 2015. It allows a never-before-seen view inside the offshore world — providing a day-to-day, decade-by-decade look at how dark money flows through the global financial system, breeding crime and stripping national treasuries of tax revenues.

The leaked data covers nearly 40 years, from 1977 through the end of 2015. It allows a never-before-seen view inside the offshore world — providing a day-to-day, decade-by-decade look at how dark money flows through the global financial system, breeding crime and stripping national treasuries of tax revenues.”



Excerpts from  ICIJabout Armando Hinojosa and EPN ties.

“Juan Armando Hinojosa, who has been called Mexican President Enrique Peña Nieto's "favorite contractor," runs a well-connected business empire that secured at least $750 million in business with government


Controversy broke out when it was revealed in late 2014 that first lady and former soap opera star Angélica Rivera was in the process of buying a $7 million mansion for the presidential family that was built by one of Hinojosa's companies and registered under the name of the firm.

After controversy, a complex offshore network was created to hold about $100 million

Throughout the summer and fall of 2015, not long after the controversy over the Casa Blanca, Mossack Fonseca helped Hinojosa create three trusts to take over accounts worth approximately $100 million previously held in banks. Hinojosa was the primary beneficiary of the trusts, nominally controlled by his mother and mother-in-law. His wife and children were named beneficiaries in the event of his death . His network was complex, with nine entities set up in three different jurisdictions — New Zealand, the United Kingdom and the Netherlands.
 



DD:  This graphic from the ICIJ shows the complexity of his offshore operation;


READ THE ENTIRE ICIJ  STORIES HERE

Though Forbes was not part of the ICIJ group, Forbes has a excellent story that summarizes the  Hinojoso Cantu material. Here are some excerpts from that story that was written by Dolia Estevez.

"The International Consortium of Investigative Journalists (ICIJ), a Washington-based nonprofit anti-corruption investigative group, and 100 other international news organizations—including Proceso and Aristegui Noticias from Mexico-worked for a year sorting through the massive data.

 "Proceso, Mexico’s leading weekly magazine, reported that Hinojosa, a wealthy entrepreneur whose company, Grupo Higa, won multimillion-dollar contracts from the State of Mexico when Peña Nieto was its governor, secretly shuffled $100 million through banks and shadow companies.

"According to Proceso, Mossack Fonseca, in collaboration with the Mexican branch of the law firm D’Orleans & Bourbon Associates, helped Hinojosa and his wife set up a series of shell companies on behalf of family members—including their respective mothers who are in their 80s–in New Zealand. Hinojosa and his wife then “donated” millions of dollars to the shell companies, which acted as beneficiaries of a foundation in Holland.


The firms were aware that the $100 million was just a “small part” of Hinojosa’s wealth, Proceso reports. In July 2015, an advisor with D’Orleans, Bourbon & Associates in Miami, sent an “urgent” email message to a Olga Santini, director of Mossack Fonseca’s branch in Florida.

Please note that we have been working together with the advisor of a very high profile client for some time and we envision that we will be appointed to assist in the restructure of his patrimonial vehicle outside his country of residence.

The structure would involve:

(1) Transfer of six (6) companies—four (4) BVI and two (2) Nevis from current provider (Trident);
(2) Appointment of nominee director & nominee shareholder for the above mentioned companies;
(3) Formation of three (3) NZ Trusts—which will be the beneficiaries of a Dutch foundation (STAK) and subsequent settlement of assets (portfolio accounts in four banks—JP Morgan, UBS, DB and MS—of circa USD 100M) owned by the before mentioned six (6) companies.
(4) Once the transfer is complete, dissolution of the six (6) companies,” reads the email.
nsfer is complete, dissolution of the six (6) companies,” reads the email.

The author of the email added;

 “This is only a small part of the client’s portfolio and we see great potential of (sic) growth as he is one of the most prominent business man (sic) in Mexico. Unfortunately due to his success and high profile, he has quiet (sic) a number of people whom greatly dislike him and unfortunately, there is a great deal of negative publicity surrounding the client.
 
"According to Proceso, Hinojosa began transferring his wealth in March of 2015, a week after Peña Nieto ordered the investigation of himself   Pena Nieto appointed one of cabinet ministers  to conduct the investigation.  

Finance Minister Luis Videgaray, Hinojoso, and Virgilio Andrade
READ THE ENTIRE FORBES  STORY  HERE

DD: In a e hour long press conference where reporters were throwing rotten tomatos at him (speaking figuratively, not literally)  he minister, (federal comptroller Virgilio Andrade)  reported his investigation showed that neither his boss EPN nor Andrade's good friend Minister of Finance Luis Videgaray (who had also bought a house from Hinojoso) had done nothing wrong and there was no corruption involved in the sale and purchase of either house.  It kind of reminded me of Nixon's "I am not a crook" speech, but EPN didn't have the nerve to do it himself - he had a subordinate do it for him.

Mexico’s Service of Tax Administration, the country’s equivalent of the IRS, said Monday that it would review the information on the Mexicans mentioned in the Panama Papers to determine if there was evidence of tax evasion.



60 comments:

  1. Im a regular but I will no longer read BB or leave comments. My name is the panama papers and I have a lot of money, I'll be too busy sorting out my financial affairs.

    ReplyDelete
    Replies
    1. ok, we'll excuse you. Go enjoy that money. Don't just leave it in an offshore account.

      Delete
    2. thank you for the post i appriciate it...good to see this..we all know chapo paid for pena ñieto election fees as well as when he escaped..i hope all these peice of shit get what they deserve..everyone crying because it wasnt a post about decapitations or some type of topon with the marinas,as if they living that lifestyle...be happy for the contribution bb does,rather read this then zetas killing kids and getting away with it...yall not living this in no way everyone sitting on were ever they sitting on on they laptop commenting..jaja..saludos borderland beat and it contributors

      Delete
    3. I keep telling ya'll, it's the devil's work,souls taken from this earth every fucking day,money being exchanged,prostitution international rings,dope to the whole planet, and at the end of the day these people with money are the devil's puppets too

      From Amsterdam
      (smoking a fat one for all the raza who believe tomorrow is gonna be a better day)

      Delete
    4. 2:03 too late güey.
      You were too busy with bb because it was free to take care of business, and now you are going to pay for it, hasta nunca.

      Delete
    5. Arriba Pancho Villa jijos del Cocho

      Delete
  2. I hope if I take the time to read all of this, it somehow relates back to the cartels or the border crisis.

    It seems lately that WHEN Borderland Beat DOES report something, it's some irrelevant or days old. My buddy at work has started calling you guys The Mexico Delayed News.

    ReplyDelete
    Replies
    1. I do not have time to search all the papers for the important news from Mexico where I live. I really appreciate them doing it for me and giving opinions and opening eyes.

      Delete
    2. @We have always talked about corruption of government at all levels in Mexico. We don't yet know what all is contained in those 11 1/2 million files that were leaked, but since they are focusing on corruption and big money, they have the potential to bring down governments. In the first 2 days after the release of the papers at least one Prime Minister has resigned.

      Corruption breeds impunity. Impunity allows criminals to operate without fear of being punished.

      The Mexican govt. has only attacked corruption by vetting the cops on the street. To eliminate or reduce corruption you have to start at the top. There may be evidence in these files that will give a tool to do that. I think that is cartel related.

      The second way these papers may help is that there is a consensus of opinion now that the best way to defeat the cartels is to hurt them financially. These papers may give us a tool to do that. I think that is cartel related.

      Delete
    3. @5:04. Thank You. You know you just about hit it on the head about what we do. A large part of is just gathering news and putting it in one place for the readers.

      Delete
    4. Wasn;t that PM of Iceland resigned?but I highly doubt EPN would resign.Remember corruption is a 'cultural' thing.He said it himself.Now for someone in the 1st world countries or should I say north of the border countries lest I offend anybody it would be such an embarrassment a politician would resign or be forced to because it makes the party look bad but Mexican politicians I think wouldn't have that sense of embarrassment because corruption is just a fact of everyday life in Mexico.Maybe I'm wrong on this.

      Delete
    5. @Canadian. You may be right about the lack of embarrassment by politicians and to some extent the people. Their reactions may be "Well, that's Mexico". But, PRI knows how to read polls and they want to hang on to the Presidency in 2018. And if the Panama Papers produce concrete proof of corruption in high places in the EPN admin. that, along with the string of other embarrassments that EPN has been involved in, may cause PRI to look for a replacement. PRI's doctors may discover a health condition which might force him to resign. I stand by prediction of more than a year ago that EPN will not survive in office until the 2018 elections.

      Delete
    6. With the pistolas the US gives the mexican governing narco-mierdocracia, their many poolice and gorilla corporations, their armed forces gorillas armed with numbers and impunity,it is easy to look at government corruption as normal, and smile at the president and his henchmen and their corruption...
      First thing is to rub it on the noses of the US government how they rub the world wrong, we spreading their brand of democracy and Christian values...
      --at the same time other persons may work in their own project and go at the government their own way..
      If BB did not exist, many of us would not be getting involved in any way, others would be collecting poop on a thousand other blogs that NOBODY VISITS, no matter how good or timely their "news" are...

      Delete
    7. DD at 11:56-Interesting your prediction.Has this happened before with a Mexican President that didn't survive the 6 years because of scandals,etc?No 1 in Mexico seems to care or can't do anything about politicians that lack 'INTEGRITY'.

      Delete
    8. We should strive to be educated in many aspects of Mexico. There is more to this BB than cartels. And how bored the writers would get if they just focused on drugs and cartels. Have some respect for these fantastic writers and the paths they choose. You aren't paying for this media guey.

      Delete
    9. 9:09 ot is not easy to bring down US sponsored LatinAmerican puppet regimes, but chile, argentina, panama, guatemala, bolivia, nicaragua, brazil, are some exams that it can be done, cuba and Venezuela prove it too...

      Delete
    10. The Politicos cannot leave it in Mexico, its all drug Money

      Delete
  3. it's all connected. big money

    ReplyDelete
    Replies
    1. And now they are calling for resignation of British PM Cameron.You might be right DD,these docs have the power to bring down governments[at least in the 'free democratic'world.Don't know about Latin America though.Thanks for all the hard work[and lost documents] to bring us that article!

      Delete
    2. I wish Cameron would resign he's an absolute slimebag

      Delete
  4. Were you using Google Docs?

    ReplyDelete
    Replies
    1. Borderland Beat main page is powered by Goggle Blogger.

      Delete
    2. I'm powered by a Chrystal Ball, some tea leaves and coffee grindz, no starbuuuks!

      Delete
  5. I very much appreciate and thank the good people at BB for their reporting. I wonder if any American politcians or sports figures were implicated. I heard that Clinton and Bush have a lot of money in Dubai. The USA has a law called FBAR requiring it's citizens yo report offshore accounts. I suppose many ignore it.

    ReplyDelete
  6. Andrés Sepúlveda, Colombian Hacker, Admits To Rigging Enrique Peña Nieto Votes, More Elections

    http://www.latintimes.com/andres-sepulveda-colombian-hacker-admits-rigging-enrique-pena-nieto-votes-more-378380

    ReplyDelete
    Replies
    1. Oops,another scandal for EPN.

      Delete
    2. 8:26 es que epn es un PENDEJO, canna, can't help or hide it

      Delete
  7. Mexicans love to hear about all the corruption that goes on in their country and the world but they do nothing about it! They prefer to cry and blame the government about everything wrong with their lives due to this corruption and then join mafias and kill each other for a measley 2000 pesos a week if they are lucky just to smuggle dope! Instead of perhaps organizing themselves and forming civilian organizations focuzed on discovering corrupt politicians and paying investigators and lawyers as well to help control those corrupted officials. It is not a very easy task I will admit but this is way better than just protesting and having the same government employees (internal affairs), of their own country which are obviously under the same corrupted payroll as the politicians investigate this corruption between politicians and do nothing about it! I mean look at how the police forces of the U.S. investigate every officer involved shooting in the country and out of perhaps 3000 of those shootings that have lef to a suspects death only about three or four officers have ever been indicted over wrongful death ovet the past ten years or so. These investigations are led by the internal afffairs of these same police forces!

    ReplyDelete
    Replies
    1. The LAPD is corrupt as they come especially the north Hollywood division they steel drugs from people they stop and resell it and if they happen to stop u late at night nobody around act funny and u will get a beating

      Delete
    2. @4:16 You said..."forming civilian organizations focuzed on discovering corrupt politicians and paying investigators and lawyers as well to help control those corrupted officials.

      That sounds like a great solution on paper and probably many people would like to do that. The problem is that most people barely make it through the week on their $75 to $100 a week salaries. Not much left to hire attorneys or investigators.

      Delete
    3. The PM of Iceland was forced out of office by citizens protesting and demanding. Mexicans shrug their shoulders and move on. It's become so ingrained.

      Delete
    4. @7:28. Get a job and keep out of trouble and you will be amazed how you won't have problems with the police.

      Delete
    5. 19:24 I got me a J♦b, and that was the start of my troubles.

      Delete
    6. Looki here, bestia, on the US police corruption is the last that gets investigated, they defend and the system defends them like bitches, their godlike status is hard to get to.
      --in mexico, the police are also corrupt and the front line of the worst criminals, the poor broke ass people of mexico can't do much more than put up with things...
      --that is why we are talking things over here, trying to find an approach, what to do, instead of assigning blame on the victims of crimes done by the mexican government and their narcs, police and military for the US government...

      Delete
    7. Take the Police out of the bad barrios that way the police cannot be blamed. Send the extra police to my barrio, and will service coffee.

      Delete
  8. This Panamanian law firm has offices all over the world, including one in las vegas, nevada. Why are they not indicted for conspiracy for all this illegal activity?

    ReplyDelete
    Replies
    1. @4:36 A spokesman for law said "we don't engage in any illegal activities. We simply sell shell corporations. Kind of like when a car dealer sells a car he is not responsible for what the owner does with that car after the dealer sales it".

      Delete
    2. The dealer has a duty to know where he got that car, and report the sale for tax purposes, and is liable for Lemmon problems, and consumer protections, AND THEY HAVE A DUTY TO THEIR CLIENTS, no excuse for getting "hacked" and robbed of data, or getting it leaked...no wonder Armando Sepulveda, Santiago Uribe velez, are in prison, Alvaro Uribe Velez is under investigation for mass murder genocide and depopulation, and LA MACARENA mass grave is under investigation, among thousand other details...
      And it all goes beyond the US mexico borders, all the way to Washington DC and institutions like the Brookings Institute, who says who lives and who dies as they see fit on their target countries...google...

      Delete
  9. search .asd into file explorer to find your document's autosave even if you chose not to save the document

    ReplyDelete
  10. It will all get buried , no one in Mexico cares .

    ReplyDelete
  11. Who gives a damn really? As if most of us BB readers diden't already know Mexico is currupt for the very high ups of the political, chain down to a a municipal police officer.. Hell even American tourist know that

    ReplyDelete
    Replies
    1. Yeah but proof is in the pudding.Yes we know the corruption but now there's reason to investigate whereas before there never is,it's always just speculation.

      Delete
  12. I wonder if chapo is in the list

    ReplyDelete
    Replies
    1. @7:26. You've got to remember that the purpose of the offshore is to keep money secret. Chapo's name is not likely to appear on any of the 11 1/2 million documents. But the name of his associates may. that is where the job of the of the 100's of investigative reporters comes into play. They take that name and search real estate records, bank records, tax records, arrest records, etc. to try to find the source of the funds. A very difficult and time consuming job.

      Two of Chapos money handlers have already popped up - Marllory Chacón Rossell and Jorge Milton Cifuentes. They were not known traffickers or launderers at the time the accounts were set up. BB covered the arrest of Chacon recently, who became known as "Queen of the South,".

      Delete
    2. Let's not get lost in the biiig baaad narcos, the corrupt government officers and pious businessmen of the latter days have a lot more money hidden all over the world, like in the bahamas, the cayman islands, all over europe, in the US, in england, in all the European banks, there are maps that say where are the biggest money laundering banks and secret money laundering corporations and investings.
      --The mexican narcos are the least of our worries, they are tools too.

      Delete
  13. very good article DD. you're doing a great job. keep it going. saludos from romania. :)

    ReplyDelete
  14. In Mexico the cartels steal from it's citizens by charging quotas, extortion and kidnapping. Then, what they can't steal the Mexican government steals from the citizens by giving lucrative contracts to their friends and relatives. Everyone is just enjoying and having a party at someone else's expense. Puros pinches ratas every where.

    ReplyDelete
    Replies
    1. True but I wonder what EPN thinks of these Panama Papers?Will he have egg on his face or will he even care?He must have thought the White House scandal was over and done.

      Delete
    2. @canadian I am surprised EPN didn't think he could make the "white House" scandal go away if he painted his house black.

      Seriously, the spokesman for EPN brushed aside questions by reporters by saying ;"that is old news. The President (His Majesty) was cleared of any wrong doing after a thorough investigation".

      Delete
    3. ¡¡¡White House?!!!
      You mean epn and Obamanos ???
      Daaang, talk about Scandal, what's Michele say?
      --That epn must be cute and deadly...

      Delete
  15. Don't worry people, once Trompas de Falopio is elected all corruption will cease, "believe me"

    ReplyDelete
  16. I was in MXC this week and it saddens me how much poverty and wealth there is. I can't believe how corrupt and shitty the Mexican government is. It is obvious where majority of the money comes from.

    ReplyDelete
    Replies
    1. US really needs to legalize. I am not a big fan of legalization, but I see no other hope to solve Mexico's problems.

      Delete
    2. Something definitely needs to be done

      Delete
    3. 10:29 if you think they will "legalize" for the poor broke ass grifos, addictos and pushers benefits, you may be very wrong, the usual suspect have been cornering the market for licenses all over the place, it will be one more business for the rich while the poor keep putting their lungs in trouble...

      Delete
    4. 10:29 legalize, what!!!
      -- We are talking here about tax heavens doubling as money laundering machines for drug traffickers, that are mass murderers too, who also rob their countries helped by these "shell companies".
      --Your brain must be a turtle shell, only harder and thicker and slower than a turtle shell with a dead turtle inside 10:29

      Delete
  17. Man, Glad my Name didn't come up. President Nieto

    ReplyDelete
    Replies
    1. No the hagas pendejo epn, your gandma, and your uncles, and your cousins y tu puta madre they are all there...
      --if Mossack/Fonseca is about the 4th largest provider of shell companies, can you imagine the scandals hidden by the other three largest, and next ten lower crook corporations for crooked crooks?

      Delete

Comments are moderated, refer to policy for more information.
Envía fotos, vídeos, notas, enlaces o información
Todo 100% Anónimo;

borderlandbeat@gmail.com