ANDERS MAGE PAGE 2.0

At times it is good to know how to get around the law whether you are a member of the Syndicate or not. At times it will be good to know how to disrupt their operations. At times it will be good to know how to beat them at their own game. Mages have methods for gathering operating capital that defy common economic theory but even they must look out for the New World Order and the I.R.S. Don't believe me? The real life Al Cappone, Lucky Luciano and Meyer Lansky were never caught for extortion or racketeering. They were busted for tax evasion. So here are a few methods for getting around those pesky tax laws.

Method 1

Typical Drug Dealer Method

1. Get a million dollars (how you do this is you own business).
2. Fly to the Grand Cayman Islands and take your million with you.
3. Some banks in that area sell legitimate off-the-shelf corporations. These are shell corporations or holding companies. Some even come complete with a board of directors. Buy one of these corporations from the bank.
4. Open an account in one of those banks under the corporation's name and deposit the remainder of your money.
5. Enjoy the islands, get some sun and then go home.
6. When you arrive at home, "borrow" a 100,000 from the corporation in the islands by wire transfer. As sneaky as this sounds, this is totally legal.
7. Open a restaurant with a bar.
8. At the end of each month, take proceeds from whatever criminal thing you've got going on the side and deposit it in the bank as the take from the bar. It is a good idea to over-report how well you restaurant/bar is doing but not to get too greedy. The Internal Revenue Service takes a dim view of a pizza parlor that purports to do several hundred thousand dollars a month in revenue. If you don't get greedy you won't get investigated. They just don't have the manpower. It is also a good idea to plow some of the proceeds into the legitimate corporation, too. If the company does well on its own it can expand and offer more laundering potential.
9. Your criminal money is now clean as a whistle. Pay taxes on it.

Method 2

The Loanback Method

1. A New Jersey gambler has half a million dollars in profits salted away in a numbered Swiss bank account. He buys a string of car washes (another great way to over-report potential sales) for 1 million financing it with $50,000 down and $450,000 with a legitimate first mortgage.
2. He "borrows" the other half million from his Swiss bank.
3. Since he is borrowing his own money and repaying it as if it too is a legitimate loan that means he has interest charges. This charade allows him to pay himself the interest and deduct that same interest from his taxes, thus bringing the money back into the country.
4. Once he has paid off his loan to himself he may relend it to himself.

Method 3

The Money Broker Shuffle

Problem: Mr. A is Colombian drug lord. He has a million dollars sitting in New York badly in need of deodorization. Mr. B is a legitimate Colombian businessman who wants to buy a million dollars worth of U.S. computers but his government wants 21 cents for every dollar he buys with his pesos.

Solution: They hire a money broker who for a nominal fee will solve the problem.

1. The million dollars is smurfed or smuggled overland to an account in a Mexican bank. "Smurfing" is the process of wire transfer of money in tiny chunks less than 10,000 dollars. This is effort intensive but necessary. Billions of dollars are wire transferred every day but only transactions larger than 10 grand are documented by banking institutions. Transactions smaller than this are fully covered under banking insurance thus larger transactions are carefully tracked in case something goes wrong. Law enforcement also does not possess the man power to check all these transactions and never will. This is an every damn minute, 24 hour a day phenomenon.
2. The broker writes a check for U.S. 1 million at a correspondent bank in New York City and gives it to XYZ computers.
3. XYZ computers ships Mr. B his machines from its Panamanian free zone warehouse
4. Mr. B gives the money broker a million dollars worth of pesos.
5. Pesos become squeaky clean pocket change of Mr. A. Annual loss of revenue to Colombian government 6-8 billion dollars.

Method 4

The Omnibus Account Method

Swiss banks (and others, I'm sure) maintain what is known as "omnibus accounts" at American brokerage houses. This make it easy for mafiosi to purchase American blue chip stock anonymously. Naturally, if they make a profit they pay no capital gains taxes on it because there are no records in the U.S. tying them to the stock purchases and the Swiss banks are bound by their laws not to reveal the names of their investors. This enables them not only to make money but to manipulate the market by buying large blocks of stock through the banks and then exercising their proxies, enabling them to determine who will be on the board of directors and who will be C.E.O.

Special thanks to Rolling Stone Magazine and Carl Sifakis for very informative material.