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Government Documents Reportedly Show Some of the World’s Biggest Banks Moving Illicit Funds

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  • Reports from BuzzFeed News and the International Consortium of Investigative Journalists detailed findings from leaked government documents which found that some of the biggest global banks moved money for criminal networks and profited from doing so.
  • The documents they drew from are known as suspicious activity reports. Very few of those reports have ever been publicized, but this leak contained 2,100 of them.
  • According to BuzzFeed, the reports revealed that major lenders like JPMorgan Chase and Deutsche Bank moved than $2 trillion in suspicious transactions between 1999 and 2017. 
  • BuzzFeed alleged that most banks could have stopped the transactions, but they often kept the money moving to collect fees and profit off the illicit funds “while facilitating the work of terrorists, kleptocrats, and drug kingpins.”
  • For the most part, banks cannot legally comment on these reports, but in statements responding to the story, many claimed to have made significant improvements to their abilities to fight financial crimes. 

BuzzFeed News’ SAR Bombshell

Some of the biggest banks in the world have helped suspected terrorists, drug cartels, rogue states, and other criminal networks move trillions of dollars, according to new reports published Sunday by BuzzFeed News and the International Consortium of Investigative Journalists (ICIJ).

The reports detail findings from thousands of leaked government documents called suspicious activity reports (SARs). Those reports, which banks are required to file if they suspect their clients of engaging in money laundering, fraud, or other illegal activity, are sent to the Financial Crimes Enforcement Network (FinCEN), an agency housed in the Treasury Department that is tasked with combating financial crimes.

FinCEN collects millions of SARs each year and sends them to law enforcement agencies all over the world. Notably, the SARs themselves do not provide evidence of wrongdoing, and the agency does not require banks to stop doing business with clients it flagged in SARs.

The investigative pieces by BuzzFeed and the ICIJ, which have been dubbed the FinCEN Files, provide an incredibly significant look into the secretive banking reports. As BuzzFeed notes, very few SARs had ever been revealed to the public prior to their reporting.

“The FinCEN Files encompass more than 2,100,” the outlet wrote, adding that the FinCEN Files “offer an unprecedented view of global financial corruption, the banks enabling it, and the government agencies that watch as it flourishes.”

According to BuzzFeed, in all, the SARs they reviewed “flagged more than $2 trillion in transactions between 1999 and 2017. Western banks could have blocked almost any of them, but in most cases they kept the money moving and kept collecting their fees.”

“[The] huge trove of secretive government documents eveals for the first time how the giants of Western banking move trillions of dollars in suspicious transactions, enriching themselves and their shareholders while facilitating the work of terrorists, kleptocrats, and drug kingpins,” the article said. “And the US government, despite its vast powers, fails to stop it.”

Specific Examples

Regarding the government response, BuzzFeed writes: “In the rare instances when the US government does crack down on banks, it often relies on sweetheart deals called deferred prosecution agreements, which include fines but no high-level arrests.”

“Laws that were meant to stop financial crime have instead allowed it to flourish,” the report continued. “So long as a bank files a notice that it may be facilitating criminal activity, it all but immunizes itself and its executives from criminal prosecution. The suspicious activity alert effectively gives them a free pass to keep moving the money and collecting the fees.”

“Banks often get to the end of their agreement without actually fixing the problems. Then, instead of getting the prosecution that they had been threatened with, they just get another chance. And sometimes another.”

BuzzFeed then goes on to explicitly flag five banks, writing that its investigation “shows that even after they were prosecuted or fined for financial misconduct, banks such as JPMorgan Chase, HSBC, Standard Chartered, Deutsche Bank, and Bank of New York Mellon continued to move money for suspected criminals.”

BuzzFeed mentions a number of examples regarding those banks. One of the most outstanding instances concerned Standard Chartered, which BuzzFeed said moved money for a Dubai-based business called Al Zarooni “that was later accused of laundering cash on behalf of the Taliban.” 

During the years that Al Zarooni was a Standard Chartered customer, “Taliban militants staged violent attacks that killed civilians and soldiers.”

The report also says the SARs BuzzFeed accessed showed that HSBC’s Hong Kong branch, “allowed WCM777, a Ponzi scheme, to move more than $15 million even as the business was being barred from operating in three states.”

That scam stole at least $80 million from investors, most of whom were Latino and Asian immigrants. According to authorities, the company’s owner “used the looted funds to buy two golf courses, a 7,000-square-foot mansion, a 39.8-carat diamond, and mining rights in Sierra Leone.”

In addition to those two banks, the outlet also reported that “Bank of America, Citibank, JPMorgan Chase, American Express, and others collectively processed millions of dollars in transactions” for the family of the former mayor of Kazakhstan’s most populous city, who was later convicted of “bribe-taking and defrauding the city through the sale of public property.”

BuzzFeed claimed that those banks continued to process those transactions “even after Interpol issued a Red Notice for his arrest.” 

Separately on Sunday, NBC News, which also viewed the same SARs, published an article claiming the documents showed that “North Korea carried out an elaborate money laundering scheme for years using a string of shell companies and help from Chinese companies, moving money through prominent banks in New York.”

“The suspected laundering by North Korea-linked organizations amounted to more than $174.8 million over several years, with transactions cleared through U.S. banks, including JPMorgan Chase and the Bank of New York Mellon,” NBC added, noting that this occurred at the same time the U.S. had put strict economic sanctions against the country in place.

Response From Banks & FinCEN

FinCEN has not released any statements since the reports came out, but it does appear they knew the exposé was coming.

In a statement published Sept. 1, the agency said it was “aware that various media outlets intend to publish a series of articles based on unlawfully disclosed (SARs).”

“The unauthorized disclosure of SARs is a crime that can impact the national security of the United States, compromise law enforcement investigations, and threaten the safety and security of the institutions and individuals who file such reports,” it added.

FinCEN also seemed to respond to reports that the SARs would be leaked by doing early damage control. On Sept. 17, just days before media outlets prepared to publish the documents, the agency published another statement announcing plans for a huge overhaul of national anti-money laundering rules.

Many of the banks mentioned by BuzzFeed have also responded to the article in a series of lengthy statements where each lender reiterated the fact that they cannot legally comment on SARs. They also noted that they have made improvements over the years when it comes to fighting financial crimes and money laundering. 

Regarding the release of the SARs themselves, BuzzFeed says it would not publish them because “they contain information about people or companies that are not under suspicion,” and added that some of the documents will be published later with redactions “to support reporting in specific stories.”

Currently, it is unclear if these bombshell reports will move the needle when it comes to reforms and overhauls. 

“If the government wanted to, experts in financial crime say, it could stop the dirty money coursing through the big banks, as well as the vast array of criminal activity it funds,” BuzzFeed wrote. 

Reforms that could be made, according to the outlet, include greater public accountability, arresting and prosecuting executives whose banks break the law, and requiring companies “to disclose their owners to the Treasury Department, rather than allowing people to hide behind a shell company.”

Additionally, while these reports are likely some of the biggest insights into SARs ever made public, they are just the tip of the iceberg.

“The FinCEN Files represent less than 0.02% of the more than 12 million suspicious activity reports that financial institutions filed with FinCEN between 2011 and 2017,” ICIJ noted in their version of the publication.

What’s more, in the last two years alone, FinCEN received “more than 2 million SARs” according to BuzzFeed.

“That number has nearly doubled over the past decade, as financial institutions have faced mounting pressure to file and the volume of international transactions has grown,” the outlet added. “Over the same period, FinCEN’s staff has shrunk by more than 10%. Sources there say most SARs are never even read, let alone acted upon.”

With that information in mind, the big question then becomes: will there be pressure from the public?

Even if it does, as The New York Times points out, it is unclear if that pressure would outweigh the sway big banks have on the government. 

“Recently, banks have pushed Congress to relieve them of some of their anti-money-laundering responsibilities,” The Times reported. “They say they are so worried about the legal consequences of failing to report suspicious activities that they err on the side of over-reporting transactions.”

See what others are saying: (NBC News) (The New York Times) (Business Insider)

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Bodycam Footage Shows Adam Toledo Wasn’t Holding Gun When an Officer Shot Him

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  • Chicago officials released body camera footage Thursday which showed that 13-year-old Adam Toledo, who was shot and killed by police last month, had put his hands up in the air right before the officer opened fire.
  • The graphic video showed the officer, who has now been identified as Eric Stillman, yelling at Adam to stop as he chases him through an alley.
  • The teenager obeyed and stopped by a fence, where he can be seen holding what appears to be a gun behind his back. Stillman ordered him to drop it, and then shot him a split second after Adam raised his empty hands in the air.
  • The footage prompted renewed outrage, protests, and calls for an investigation. A lawyer for the Toledo family called the killing “an assassination,” while Stillman’s lawyer defended the officer, and claimed he acted appropriately.

Officer Bodycam Footage Made Public

Body camera footage released by Chicago officials Thursday showed that Adam Toledo, a 13-year-old boy killed by police last month, had his hands up when he was fatally shot.

The footage, which was released as part of a report by the city’s Civilian Office of Police Accountability (COPA), showed officers chasing Adam, who was Latino, through an alley in the predominantly Latino neighborhood of Little Village during the early hours of March 29.

The officer ordered Adam to stop. The teenager complied and halted by the side of a fence, holding what looks like a gun in one of his hands behind his back. The policeman yelled at him to drop it and show his hands.

Adam turned and lifted his empty hands, and the officer fired his weapon, striking the teenager once in the chest. The policeman is then seen administering CPR and asking him, “You alright? Where you shot?” while blood poured out of his mouth.

The COPA report published Thursday also identified the officer who shot Adam as 34-year-old Eric Stillman, who is white, and whose lawyer said he had been put on administrative duties for 30 days.

Stillman’s lawyer also argued that the shooting was justified, as did John Catanzara, president of the Fraternal Order of Police.

“He was 100% right,” Catanzara said. “The offender still turned with a gun in his hand. This occurred in eight-tenths of a second.”

Renewed Backlash and Protests

Adeena Weiss Ortiz, an attorney obtained by Adam’s family, said they are looking into taking legal action against Stillman. 

“If you’re shooting an unarmed child with his arms in the air, it’s an assassination,” she said at a news conference Thursday. 

Ortiz acknowledged the bodycam footage did appear to show Adam holding something that “could be a gun,” but argued the video must be independently analyzed to confirm.

“It’s not relevant because he tossed the gun,” she said. “If he had a gun, he tossed it.”

The American Civil Liberties Union of Illinois also echoed Ortiz’s demands on Thursday, calling for a “complete and transparent” investigation.

“The video released today shows that police shot Adam Toledo even though his hands were raised in the air,” said Colleen Connell, executive director of the ACLU of Illinois.

“The people of Chicago deserve answers about the events surrounding this tragic interaction. The anger and frustration expressed by many in viewing the video is understandable and cannot be ignored.”

Hours before the video was released, Chicago Mayor Lori Lightfoot pleaded for calm in the city, where anti-police protests have taken place in the weeks following the shooting.

“We must proceed with deep empathy and calm and importantly, peace,” she said. “No family should ever have a video broadcast widely of their child’s last moments, much less be placed in the terrible situation of losing their child in the first place.”

Some businesses in downtown Chicago boarded prepared for violence ahead of the video’s publication by boarding up their windows. City vehicles stood by to block traffic.

However, the demonstrations that took place Thursday were small, peaceful, and spread out over several parts of the city. Organizers said they plan to hold more protests Friday.

See what others are saying: (The Chicago Sun-Times) (The New York Times) (The Chicago Tribune)

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Eight Dead in Indianapolis Shooting

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  • Eight people were killed and several more were injured after a gunman opened fire at a FedEx Ground Facility in Indianapolis late Thursday.
  • The gunman took his life after opening fire. Authorities have not identified his motive yet. 
  • According to the Gun Violence Archive, in 2021, there have been 147 U.S. mass shootings, defined as verified incidents with four or more gunshot victims.
  • President Joe Biden released a statement calling gun violence “an epidemic in America,” adding, “We should not accept it. We must act.”

Eight Killed in Shooting

Eight people were killed and several others have been wounded after a gunman opened fire at a FedEx Ground Facility in Indianapolis late Thursday.

The gunman killed four people in the parking lot then four people inside before taking his own life, according to local officials. Authorities have identified the gunman and are searching his home, but have not disclosed any potential motives.

“There was no confrontation with anyone that was there,” Deputy Chief Craig McCartt of the Indianapolis Metropolitan Police Department said during a press conference. “There was no disturbance, there was no argument. He just appeared to randomly start shooting.”

Several witnesses told local outlets they initially thought the gunshots were engines backfiring or another type of mechanical noise until they saw the gunman. Some said they heard him shouting indistinctly before opening fire. The investigation is still in very early stages and victims have not yet been identified. 

The facility employs 4,500 team members. It is unclear how many were working at the time of the shooting. FedEx released a statement expressing its condolences to the victims and their families. 

“We are deeply shocked and saddened by the loss of our team members following the tragic shooting at our FedEx Ground facility in Indianapolis,” the statement read. “Our most heartfelt sympathies are with all those affected by this senseless act of violence. The safety of our team members is our top priority, and we are fully cooperating with investigating authorities.”

Gun Violence in the U.S.

This tragedy follows a recent string of mass shootings in the U.S., including in Atlanta, Colorado, Southern California, and Texas. According to the Associated Press, this is at least the third in Indianapolis this year. 

The Gun Violence Archive has logged a total of 147 mass shootings in the U.S. so far in 2021. The organization defines mass shootings as reported and verified incidents with at least four gunshot victims.

Several politicians have released statements about the shooting, including Vice President Kamala Harris, who said this pattern “must end.”

“Yet again we have families in our country that are grieving the loss of their family members because of gun violence,” she said. “There is no question that this violence must end, and we are thinking of the families that lost their loved ones.”

President Joe Biden also released a statement saying that, “Too many Americans are dying every single day from gun violence. It stains our character and pierces the very soul of our nation.”

“Gun violence is an epidemic in America,” Biden added. “But we should not accept it. We must act.”

Indianapolis Mayor Joe Hogsett echoed those remarks in a news conference. 

“The scourge of gun violence that has killed far too many in our community and in our country,” he said.

“Our prayers are with the families of those whose lives were cut short,” he added on Twitter. 

Hogsett is among 150 U.S. mayors who recently signed a letter asking the Senate to take up gun legislation, including expanding background checks.

Editor’s Note: At Rogue Rocket, we make it a point to not include the names and pictures of mass murders or suspected mass murderers who may have been seeking attention or infamy. Therefore, we will not be linking to other sources, as they may contain these details.

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Soldier Charged With Assault After Shoving Black Man in Viral Video

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  • Authorities charged Army soldier Jonathan Pentland with third-degree assault and battery on Wednesday after a viral video showed him shoving a Black man while yelling at him to leave a South Carolina neighborhood.
  • Many people, including dozens who protested outside Pentland’s home this week, condemned the confrontation as another instance of someone being attacked for “walking while Black.”
  • Pentland and others claimed the unidentified man was picking a fight with neighbors, which the man denied, but police said nothing that may have happened earlier justified Pentland’s actions.
  • If convicted, Pentland faces a $500 fine and 30 days in jail.

Viral Video

A U.S. soldier was charged with assault on Wednesday after a video that circulated online showed him yelling at and shoving a Black man in a South Carolina neighborhood.

Footage of the April 8 incident was posted to social media Monday. It shows the Army soldier, Jonathan Pentland, confronting the unidentified man and telling him to leave the neighborhood. 

The other man explains that he’s just walking through the area and doing nothing wrong, but Pentland becomes increasingly aggressive. “You better walk away,” he shouts at the man after shoving him.

“You either walk away, or I’m gonna carry your ass out of here,” he continues before adding, “You’re in the wrong neighborhood motherf*ker. Get out!”

The man then tries to tell Pentland that he lives in the neighborhood, and Pentland then asks for his address, which he does not give.

The confrontation continues with Pentland cursing and getting in the man’s face. As he does so, the man says that Pentland smells drunk. 

It’s unclear what exactly led up to the confrontation, but in the video, a woman off-camera says the man “picked a fight with some random young lady that’s one of our neighbors.”

“I don’t even know who she is. Nobody picked a fight when someone ran up on me,” the man replies. Another woman off-screen then encourages the man to leave with her, saying, “What’s your name? Come on. You don’t want no trouble.”

Video Triggers Protests Outside Pentland’s Home

After this video spread online, many social media users condemned it as another instance of someone being attacked for “walking while Black.”

In fact, protesters even began demonstrating outside of Penland’s home. Those protests started off peaceful, but deputies were then called after 8 p.m. because unknown individuals vandalized the house. That forced police to shut down access to the area and remove Pentland’s family to another location.

As far as the viral video, deputies were told that the man approached “several neighbors in a threatening manner” and that someone had asked Pentland to “intervene.”

Police did confirm that there are two reports of alleged assault against the unnamed man Pentland shoved that are being investigated. However, they also added that the man has “an underlying medical condition that may explain the behavior exhibited in the alleged incidents.”

Pentland Charged

Either way, police said whatever happened earlier did not justify Pentland’s actions. He was ultimately arrested Wednesday morning and was charged with third-degree assault and battery. He faces a $500 fine and 30 days in jail if convicted.

“We’re not going to let people be bullies in our community,” Richland County Sheriff Leon Lott said at a news conference Wednesday. “And if you are, you’re going to answer for it, and that’s what we’ve done in this case.”

On top of that, the Justice Department reportedly was investigating. Pentland’s Commanding General even issued a statement condemning his behavior, adding that Pentland “brought disrespect to @fortjackson our Army and the trust with the public we serve.”

See what others are saying: (The Washington Post) (ABC News) (Huffpost)

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