CIMA Law Group Blog

Pandora Papers Exposed the Rich and Powerful

Graphic showing size of Pandora Papers leak

The International Consortium of Investigative Journalists distributed two years of completed research compiled of almost 12 million reports from approximately 300 politicians, including at least 35 current and former leaders, who used offshore companies to make personal purchases while evading taxes and concealing their assets. Fourteen financial services companies provided these documents from various nations.

According to the reports, many powerful leaders own offshore companies through which they secretly purchase luxurious properties, primarily in the United Kingdom and the United States. The Pandora Papers exposed the secret finances and operations behind the transactions that make them richer. According to some of the accused lawyers, shell companies are used to protect the owner’s identity for security and privacy purposes, which is not the primary reason why many elites use them. According to the leaked documents, offshore companies are ideal for tax evasion, money laundering, and fraud.

Properties bought by the King of Jordan in Malibu — **Jordan’s King Abdullah Mansion in Malibu**

Among those named is Jordan’s King Abdullah, who accumulated 50m from his three homes in Malibu, California, and London and Ascot, in England. Kenyan President Kenyatta and his family own 30 million dollars in assets. Tony and Cherie Blair acquired properties by purchasing the offshore companies that own them, which is legal in the UK but unfair. The system allows a buyer to acquire assets without paying stamp taxes; taxes paid to the government to legalize the ownership during assets transfer. Pakistani officials, Cyprus President Nicos, Ukraine’s President, Ecuador’s President, Czech Prime Minister Andrej, who is up for election this week, Azerbaijan’s ruling family, and others are among those on the list.

London is home to many global firms that facilitate the wealthy in this process. Especially since the UK government has failed to legalize the registration of offshore property owners, allowing them to profit enormously from their transactions while paying little or no tax. As a result, of this negligence, the total amount of hidden assets is worth trillions of dollars, causing governments to lose billions of dollars in revenue.

Members of the International Consortium of Investigative Journalists (ICIJ) believe that this revelation will encourage governments to investigate and, eventually, rectify a few laws. Some are skeptical, claiming that changes are unlikely because the leaked documents demonstrate that the secrecy of owning offshore companies is a convenient method for the wealthy and powerful to maintain their position by increasing profits.

Mayfair office building bought by — **A 33M Building in London Owned by Azerbaijan President 11 years Old Son Heydar Aliyev**

In 2016, the ICIJ published the Panama Papers, provoking the resignation of officials around the world. Now that these files have been made public, the organization expects more significant measures to be taken. To prevent money laundering through these operations, the UK has stated that it will enforce laws requiring UK property owners to register offshore companies when the time comes.

More than 600 journalists collected this data from 117 countries investigating the rich and powerful’s dealings and hidden assets. Thus far, many officials have declined to comment on these revelations. What remains to be seen is whether the leaks will affect the financial situation and the impact or change it will have in the coming days.

This blog post is part of the CIMA Law Group Blog. If you are in need of legal help, the CIMA Law Group is a law firm in Phoenix, Arizona which possesses expertise in Immigration Law, Criminal Defense, Personal Inquiry, and Government Relations.

Supreme Court Turns Focus to America’s Most Controversial Issues

With the United State’s Supreme court meeting in person again for the first time in over a year, a largely conservative court aims to tackle America’s most controversial issues. Issues such as guns, abortion, affirmative action, and the separation of church and state will all be addressed by the Supreme Court in the coming years and, in a time in which justices seem to stick to party lines, the United States could see a complete overhaul of the justice system. Former court rulings such as Roe vs Wade are already in jeopardy as the Supreme Court refused to intervene during Texas’s six week ban on abortion.

Second Amendment rights are another aspect which the court aims to address. A new case, regarding concealed carry outside the home in New York, has already been set to be heard. The Supreme Court, up until now, has largely been noncommittal with regards to gun rights in the United States. In 2008, the Supreme court ruled in favor of the right for citizens to keep guns at home for self defense. A conservative court could conceivably expand on these rights and overrule state laws. In the coming weeks the Court is expected to gage the publics opinion by ruling on Mississippi’s 15 week abortion ban.

A highly politicized Supreme Court could mean increased public distrust of both appointments and court rulings. The fallout of the Courts decision to stand aside while Texas enacts its’ abortion law has already lead to a decreased approval rating.

Vaccines: A New Approach to Ending The Opioid Epidemic

Vaccines are a powerful tool used to protect the human body from contracting many harmful diseases ranging from small pox to Covid-19. Although the process of creating vaccines are different for every illness the principle remains the same. Vaccines are designed to trigger the patients own immune system to develop antibodies against a target. These targets are usually viruses that are harmful to the human body, but a professor of neurobiology at Columbia University, Sandra Comer, has recently began trials testing the potential use for a vaccine against a different type of killer: opioids.

The reasons for wanting to create a vaccine to help curb the opioid epidemic do not seem to end. Opioids are class of drugs that are intended to help reduce acute and chronic pain felt by patients. Unfortunately this class of drugs has a high potential for abuse and can lead to what is known as opioid use disorder, a chronic lifelong disorder with devastating consequences that include disability and death.

In fact the population affected by opioid related drug overdoses is only growing. According to a report from the Centers for Disease Control and Prevention more than 92,000 Americans died from the deadly effects of opioids in 2020, which is a 30% increase from 2019.

Although the vaccine trials are still in the early phases, Comer’s new approach to slow the spread of opioid use disorder has the potential to help millions of people affected by the drug. Pravetoni, a researcher from the University of Minnesota Medical school who also helped design the vaccine told the Washington Times, “the vaccine-induced antibodies work like an antidote or like a sponge soaking up the circulating drug target so that the drug cannot exert its effects/actions”. If too much of the drug is present in the body, the hope is that this vaccine would prevent excess opioids from being absorbable.

Too many people have suffered from the adverse affects of opioids and it is daunting to learn that this number is only growing larger. Everyone who is prescribed narcotics to treat pain is a potential victim to developing a dependence or experiencing an overdose. With so many people at risk, this vaccine is intended to prevent the spread of the opioid epidemic.

2020 Presidential Race Ends in Maricopa County

**Independent firm, Cyber Ninjas, releases audit of 2020 Presidential Race in Maricopa County.**

The 2020 Presidential race ends in Maricopa County with a narrow margin of voters in Arizona. With the election filled with claims over voter fraud and Arizona being a vital state for Donald Trump’s reelection, republicans hired an independent firm to conduct an audit into the election results in Maricopa county. Last week, the independent firm named Cyber Ninjas gave their testimony of the results of their hand conducted audit and confirmed what many voters already knew: Biden won the election in Maricopa County by a margin of only forty five thousand votes.

The independent firm Cyber Ninjas, contracted to carry out an audit of the 2020 Presidential Election in Maricopa County, is controversial among many Arizonans. Some officials have gone as far to say the audit wasted six million dollars of taxpayer money so Cyber Ninjas could tell them what they already know. Although this audit does not call for a decertification of the 2020 election, it did uncover some discrepancies in the final vote. One being an additional 360 votes to President Biden, as well as ten thousand potential voters who voted in different counties. Arizona Senate President Karen Fann noted these findings have sparked the Arizona Senate to begin writing legislation that would create an “unimpeachable electoral process”. Some of these provisions include improving signature verification on ballots and cyber security. These findings have been sent by the Senate to the desk of Arizona Attorney General Mark Brnovich who’s election integrity team is currently reviewing the results.

Although the audit is almost completely identical to Maricopa County’s original 2020 Presidential Election vote count, Cyber Ninjas did include in their final report that human error is present in their hand conducted count. One flaw of the voting system that made it difficult for the firm to identify any potential counterfeit ballots is the lack of a standardized paper stock used by election administrators. Even though these findings are not significant enough to change the results of the race, they do highlight aspects of the US voting system that needs further improvement.

Huawei CFO Meng Wanzhou Released After Admitting Wrongdoing

**The picture from The New York Times showing Meng Wanzhou leaving her home to attend the court hearing in Vancouver**

Since 2018, Huawei Chief Financial Officer Meng Wanzhou has been detained in Canada on behalf of the United States. Meng, the daughter of Huawei founder Ren Zhengfei, was charged by US prosecutors with selling equipment to Iran, stealing trade secrets, and engaging in fraud in violation of the 2017 sanctions. Meng went to her final court hearing in Canada on Friday to fight extradition to the United States.

The prosecution agreement reached between Brooklyn federal prosecutors and Meng was valid for four years following the arrest and would expire in December 2022. The Justice Department agreed to drop the charges against Meng and allow her to return to China if she complies with the DPA’s condition of acknowledging wrongdoing. Meng’s attorneys anticipate that the charges against her will be dropped within months of her release.

Image: Protest rally — **The picture from the NBC News showing protestors holding pictures of**
**the two Canadians imprisoned in China outside the British Columbia Supreme Court**

Following the court hearing, Canadian Prime Minister Justin Trudeau announced the release of two Canadians arrested in China for three years on spying charges following Meng’s detainment.

Despite Meng being under house arrest in her mansion on bail conditions, the two Canadians were imprisoned and tried in isolation, with little communication from the outside world. Michael Spavor was charged with espionage and sentenced to 11 years in prison while Former diplomat Michael Kovrig awaited the verdict of his trial. The United States withdrew its extradition request for Meng, who returned to China after thanking Canada for “upholding the rule of law.”

What’s Next with Biden’s Infrastructure Bill?

As American infrastructure ages, maintaining transportation systems, waterways, internet, and electrical grids is of increased importance. These seldom thought about services provide the framework on which the American economy is run. Not only does infrastructure affect our economic output and convenience but also our energy consumption. Using dated electrical grids, hydroelectric dams, and public transit can jeopardize safety and energy efficiency. A modern economy requires sound infrastructure to function and American infrastructure is in desperate need of attention. According to the American Society of Civil Engineers, the average age of water pipes, dams, levees, bridges, and lock chambers is either approaching or is past the recommended service age of 50 years. Additionally, America is far behind the curb on public transit and renewable energy compared to other developed economies. Fire’s in the west, hurricanes in the south, and flooding around the country have highlighted the insufficient infrastructure needed to combat the changing climate. This infrastructure bill aims to address all these concerns and more in what sums to roughly $1.2 trillion in additional funding.

The infrastructure bill stands to benefit the majority of Americans with long overdue infrastructure spending but, the way in which these funds are spent remains to be seen. Additionally, how will the labor shortage in the U.S. impact the implementation of these projects? These are important questions to be asked as the House nears the completion of this bill. Regardless, an upgrade of infrastructure is desperately needed in order to keep pace with other developed countries in aspects like climate change, public transit, and travel.

As of September 22nd, 2021 the bill has passed the Senate but is currently held up in the House. Speaker Pelosi has hinted that her caucus may not move forward on the bipartisan infrastructure bill until the Senate votes on a 3.5 trillion dollar reconciliation bill focused on “human infrastructure”. This “human infrastructure” bill includes items such as universal pre-k, tuition free community college, public housing expansion, and immigration reform.

What Happens if the U.S. Defaults on its Debt? (for the first time ever)

You’re likely already aware of the US’s national debt of unfathomable proportions (somewhere in the realm of 28 trillion and climbing fast; see usdebtclock.org). But most Americans aren’t really concerned about what goes on behind the scenes. Yes, it’s one of the government’s least glamorous topics, but now it might have consequences for everybody (America AND abroad).

For the first time ever, the US government might default on its debt. In fact, this could happen as soon as October 15th of this year. The US has always relied on its credit for domestic policy-making and international standing. Paid back through Treasury bonds, the country has never defaulted on our debt. Hence, the US “credit score” has been perfect with international firms that assess creditworthiness.

To prevent default, Congress has consistently agreed to raise the debt ceiling, which is the upper limit on the amount which the government is permitted to borrow. Instead of cutting deficits through lowered spending or raised taxes, Congress has routinely, and without much spectacle, raised the debt ceiling. This time, Congress may not be able to raise the debt ceiling in time – so, what would happen if the government defaults on its debt?

Treasury Security Janet Yellen says that a default would permanently weaken America. She notes that our creditworthiness has allowed us to borrow more cheaply than any other nation, but that a default would end that longstanding precedent. This higher cost of borrowing, she says, would largely fall on the consumer. If you use a credit card, take out car loans, or pay a mortgage, you may feel the effect. Even more: a mild recession would be an absolute best-case scenario; unemployment could rise to about ten percent, with stock prices plummeting nearly one-third.

In the past, Congress has always evaded default through a raising of the debt-ceiling. With guidance from the Department of Treasury, it is unlikely that the government will fail to prevent a worst-case scenario.

The Fate of Migrants at the Border Town of Del Rio in Southern Texas

Why Haitian immigrations are in Del Rio, Texas — **Migrants crossing the Rio Grande between Mexico and The United States**

Del Rio, which means “river,” is a town in southern Texas that borders Ciudad Acuña, Mexico. Residents in both cities are used to crossing the border daily for work, visitation, and other reasons. Since Friday, they haven’t been able to do so when authorities shut the border to block immigrants from crossing or camping beneath the border bridge.

Over the weekend, people who benefit from employment on either side were stranded. Texas Gov. Greg Abbott stated that the border needed to be sealed. Residents complained about migrants wandering outside their homes, and authorities arrested those who crossed illegally, but barriers and fences were placed too late to stop them from entering Del Rio.

Around 15,000 migrants, mainly from Haiti, camped underneath the international bridge as they left their country’s dire economic conditions and violence, searching for refuge and possibly seeking asylum in the United States. Unfortunately for them, 400 additional agents and officers have been dispatched to assist in transporting migrants from the encampment to specific sites where they will be processed before deportation to Haiti, which had already begun on Sunday.

Use of horses along border in Texas suspended, White House says — **Image from the New York Post**

News outlets received pictures and videos of what appeared to be border patrol agents mistreating migrants while gathering them up for relocation. On Tuesday, The White House Press Secretary Jen Psaki condemned the acts saying, “I don’t know anyone who could watch that video and not have that emotion.” The secretary of Homeland Security, Mayorkas, promised an independent government inquiry and an internal review to clarify the processing of migrants at the border.

Based on President Joe Biden’s opposition to closed borders, there is a widespread misconception that the country has an open border policy for asylum seekers. They risked their lives and hoped for a better future in the United States, only to be deported shortly after arriving.

Following the Biden Administration’s decision to deport Haitians, Daniel Foote, the United States’ Special Envoy to Haiti, resigned yesterday because he did not want to be associated with the inhumane deportation action. Especially after president Moise’s assassination and the recent earthquake, gangs’ violent activity towards their people, and the prime minister’s resignation linked to the late president’s murder. Foote asserted that Haiti is unlikely to support its citizen. Texas governor criticized the Biden Administration for lack of resources, and he is now concerned that migrants would find another means to breach the border.

The Threat to California’s Oldest Trees

California’s historic drought this summer has brought on a wave of new challenges to some of the largest and oldest growing trees in the world. Severe fires last year killed thousands of sequoias and burned hundreds of buildings. This year things have hardly changed. On Friday, September 20th the base of the largest tree in the world, General Sherman, was covered in fire retardant foil and, although the fire is unlikely to reach General Sherman this time, climate change and drought should make everyone concerned for the future of Sequoia National Park. For reference, General Sherman is 83.8 meters tall while the Statue of Liberty is 93 meters tall. This makes General Sherman the tallest tree in the world.

More than 7,000 wildfires in California this year have scorched or damaged 3,000 homes and blackened 3,000 square miles of land. Low humidity, strong winds, high temperatures, and a lack of rain have all contributed to the devastating fire season but, many experts expect that climate change is playing a large role in the west’s fire problems.

Wildfire burns near Sequoia National Park

To anyone following the intense fires, the situation seems maddening and hopeless but, there are still a few simple changes that can go a long way. Firstly, we must start by fighting fire with fire. That is to say that deliberate and controlled burns can help manage high risk areas by clearing out vegetation that acts as fuel to wildfires.

In the long term the most obvious solution is to curb climate change by reducing our carbon footprint. This won’t have any immediate impact but it will make sure problems will not get worse in the future.

The Story of Gabby Petito

Gabrielle Petito, 22, along with her fiancé Brian Laundrie, set out on a cross-country trip in a camper van.

Gabrielle Petito’s family reported her missing to the North Port, Fla., police department on Sept. 11. She vanished in the western United States while on a cross-country journey with her fiancé, Brian Laundrie, who returned to his North Port home on Sept. 1 without Ms. Petito. To save money for the trip, Ms. Petito had been working as a pharmacy technician. According to her stepfather, Jim Schmidt, she met Mr. Laundrie, 23, at Bayport-Blue Point High School on Long Island.

The pair left New York on July 2 for a four-month tour in a modified camper van, and they documented much of the journey on social media with bright, happy photos. The terms “crossing the world in our tiny van” and “art, yoga, & veggies” appear near the top of Ms. Petito’s Instagram account.

The above picture was the last post uploaded on Gabby’s Instagram account with the caption “Happy Halloween”.

FBI officials and the Jackson Police Department began conducting surveys in the areas of Grand Teton National Park where it is likely for Ms. Petito to be found. The FBI later began to seek information from anyone who might have seen the couple or the van they were traveling in. Since Mr. Laundrie went missing, he had become the main suspect for Ms. Petito’s dissapearance. The FBI had finally gotten Mr. Laundrie’s family to talk and it was noted that they believed for Ms. Petito’s parents to know information they’re not communicating.

The case of Gabrielle (Gabby) Petito went viral and led to protestors lining up outside the families home chanting “Where is Gabby?”. As of September 19, remains were found at a campground in Bridger-Teton National Forest, near Grand Teton National Park. The remains were thought to be ‘consistent’ with Gabby Petito which would later be confirmed by a forensic investigation. The cause of death has not yet been determined, but the hunt for Petito’s fiancé remains active.