China's millionaires, having looted their country, are anxious to get their money out of reach of the Politburo, to guard against confiscation should the political tides turn. Only one problem: the government will only let Chinese nationals move $50K/year out of the country.
The majority of China's new super-rich are prepped to leave the country, but getting their cash out is a serious problem. Much of the volatility in Bitcoin can be ascribed to Chinese elites using the cryptocurrency to smuggle cash out of the PRC. With the Chinese Yuan tanking, the race is on to convert Chinese wealth to other currencies and get out while the getting is good.
But there's a better way: for a small sum, you can just set up an offshore shell company, direct it to sue a Chinese company you own, throw the lawsuit, and then, oh well, I guess there's nothing for it but to send a bunch of cash to your shell company, exempted from export controls, in the form of court-ordered damages.
Mr. Harris told China Real Time that the company, a privately-held Chinese manufacturer, wanted to pursue such a fake arbitration, rather than fake a simple legal settlement for the same amount of money, because it was concerned about convincing government regulators who have been closely scrutinizing offshore remittances.
“They wanted it to look really official,” he said in a phone interview. “Arbitration also moves quickly, so they could conceivably do it within three months.”
Mr. Harris said he got the call in the last two weeks, and it was the first and only of its kind he’s so far received. He said he altered the nationality of the adviser recounted in his blog post – the adviser was a Westerner, but not Australian – to shield the identities of those involved.
It became clear to Mr. Harris in his conversation with the Western adviser to the Chinese company that there wasn’t even a real counter-party in the U.S., where the Chinese company wanted to move its funds. “We would have helped to form this company that would have sued this Chinese company,” he told China Real Time.
China Capital Flight 2.0: Lose A Lawsuit On Purpose
[Wall Street Journal]
(Image: A PLZ-89 self-propelled howitzer passes the Shin Kong Place Luxury shopping centre during a training exercise, Beijing.
, Dan, CC-BY)
Normally, companies that give “performance pay” to their execs can only write off the first $1M: but when Wells Fargo gave $125M to Carrie Tolstedt (shown above receiving American Banker’s 2010 award for being “the most powerful woman in banking”) as she “retired” after overseeing a 5-year period in which Wells Fargo’s top brass were […]
CNN Money has found multiple whistleblowers from Wells Fargo who were willing to go on the record and report that they were fired in retaliation for coming forward to report the massive fraud in which Wells Fargo employees opened up 2,000,000 fake accounts in their customers’ names, raiding their real accounts to open them, then […]
Sociologist Brooke Harrington got her Trust and Estate Planning certification in order to study the super-secretive world of the wealth managers who are in charge of hiding the $21 trillion controlled by the world’s super-rich from tax authorities, feckless descendants, religious leaders, tax justice activists, kidnappers and extortionists.
With the iPhone headphone jack having gone by the wayside, we’re excited about the addition of the FRANKLIN Bluetooth Headphones in our store. These headphones are foldable so they’re easy to carry around, but most importantly, they pack impressive sound. Our biggest struggle with Bluetooth headphones is the worry of them dying at the worst moment. This pair lasts an impressive 8-10 […]
Evan Kimbrell, founder of the digital agency Sprintkick, recently released a series of online courses that feature some of the best advice we’ve come across. These courses are well worth your time, and will save you from making many typical mistakes down the line if you ever want to start your own business.With this Business […]
Handy is the most convenient solution we’ve found for booking a house cleaning at the last minute, and they do a really great job. It’s as easy as heading to the site, selecting a date and time that works for you and the number of rooms in your home. We’ve even scheduled emergency cleanings as soon as the following day. […]