Published On: Fri, Mar 15th, 2013

Cayman Islands seeks to protect ‘tax shelter racket,’ says US company

George Town Grand CaymanNEW YORK, USA -- A company known as Trikona has called for congressional hearings on what it described as “the Cayman Islands tax shelter racket and the efforts of Cayman courts and Cayman judges to extend their control over US courts and US sovereignty.”

Trikona said it will call upon Senate Majority Leader Harry Reid, Speaker of the House John Boehner, and the Senate and House Committees on Foreign Relations to investigate Ugland House, Judge Andrew Jones, and the efforts of Cayman judges and Cayman courts to interfere in the US. It also plans to call upon Secretary of State John Kerry and Connecticut Senator Christopher Murphy, who sits on the Senate Foreign Relations Committee, for the same purpose.

“Maples and Calder is the law firm in Ugland House operating these tax scams. Its former head, Andrew Jones, is now a judge in the Cayman Islands, after retiring with a fortune from Maples and Calder, while living a good part of the year in New York City. Judge Jones, in order to protect the Cayman tax shelter racket, and the fortunes of other Caymanian lawyers making money off of it, is now trying to batter down US protections against extension of Cayman tax shelter rackets so as to interfere with US sovereignty and US courts,” the company said in a press release.

Ugland House is the infamous Cayman Islands building where 18,000 companies are “located.” In a 2008 campaign speech, President Obama said about Ugland House that “either this is the largest building in the world or the largest tax scam in the world.”

In 2008 a key US Senate tax panel called for a crackdown on the Cayman Islands tax shelter industry. Sen. Max Baucus, D-Mont., chairman of Senate Finance Committee, said: “We’re going to find a way to make a huge dent in this problem.”

The US, through a law called Chapter 15, has tried to cordon off interference by the Cayman Islands (and from other similar tax havens) with US courts and US sovereignty.

Trikona’s lawyer, Michael Gilleran of the Boston law firm of Adler Pollock and Sheehan, commented: “Chapter 15 is designed to create a wall against interference with US courts and US sovereignty by courts in tax shelter havens like the Cayman Islands. Courts in such places are trying to batter down the protective wall against them. The wall enacted by Congress, a wall built to protect a great public good, must hold.”

“Cayman courts and Cayman judges, in order to protect their tax shelter racket and the fortunes they have made and will make off of it, are trying to ignore or sneak around the US laws against them,” Trikona added.

Trikona claimed that Judge Jones in the Cayman Islands has appointed liquidators to interfere in law suits by the company in Connecticut against one of its directors for breach of fiduciary duty. One of these suits is pending in US District Court in Connecticut. Trikona said in court filings in the Connecticut litigation that its (former) director, Rak Chugh, formerly of Lehman Brothers, while still a director of Trikona, stole its customer database, used the customer database to set up new companies, competed with Trikona through these new companies, and misappropriated Trikona’s business opportunities.

According to Trikona, the Cayman liquidators, appointed by Jones, are about to be funded by the defendant in the Connecticut litigation, namely, Rak Chugh.

“Chugh is about to or already has, through straw companies he controls, paid the liquidators $500,000 to interfere in the Connecticut litigation against him,” Trikona asserted.

By Caribbean News Now contributor

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