I SIT AT MY computer, my working tool. My computer screen is also projected on a movie type screen, visible to each of the others in the room. One Billy is marched into the room, by a couple of large, strong-looking guards. Billy is forced to sit on a chair.
Martha, my boss, tells me, “Jake, show William the evidence.”
I pull up a transaction on my screen and also on the movie-type screen. I lecture, “Last night, William Clart tried to do an intra-company transfer of funds to an operation in the Cayman Islands. This company has no operation in the Cayman Islands. The funds transfer was in the amount of $999.00 USD, just below the normal checkpoint for transfer of company funds. However, yesterday, Martha had me set the checkpoint for transfer of company funds to a somewhat lower amount. The only funds transfer, caught by the new, lower limit, was the displayed funds transfer, in the amount of $999.00 USD. The funds transfer was sent from William Clart’s password-protected computer.”
Billy sneers, “That proves nothing. Anybody could have used my computer.”
I lecture the thief, “In order to use the funds transfer function, the user has to also enter a password, different from the sign-on password.”
Billy sneers, “That proves nothing. I may have been a bit careless about protecting my computer passwords.”
I point at Martha.
Martha snarls, “William, we had your office monitored last evening. Until the funds transfer, in the amount of $999.00 USD was entered, no one but you entered or left your office.”
Billy snarls. “I got legal rights. I talk no more, until I got me a lawyer.”
Martha gestures at the guards and Billy is yanked out of his chair and is then led off.
* * *
A FEW DAYS later, my Corporate Counsel and I face Billy and his shyster lawyer.
Billy’s shyster lawyer states, “You claim that you have evidence that my client, William Clart, misappropriated funds, funds supposedly belonging to your company.”
My Corporate Counsel and Billy’s shyster then have a back and forth involving legal code paragraphs and court decisions.
(I understand some of the words. The sentences I do not understand.)
My Corporate Counsel then points at me and says, “Jake tell them about the Cayman Islands.”
I lecture thief and shyster, “The Cayman Islands, historically, have been popular as a tax haven, due to a number of ship wrecks. In the early morning hours of February 8, 1794, ten vessels, part of a convoy escorted by HMS Convert, were wrecked on the reef in Gun Bay, at the East end of Grand Cayman Island. Despite the darkness and the pounding surf on the reef, local settlers braved the conditions and attempted to rescue the passengers and crew of the shipwrecked fleet. There are conflicting reports of the incident, but it is believed that between six and eight lives were lost that night, among the dead, the Captain of the Britannia. However, the overwhelming majority, more than 450 people, were successfully rescued. The incident is now remembered as ‘The Wreck of The Ten Sail.’ Legend has it, that among the rescued passengers there was a member of the British Royal Family. Most believe the member of the British Royal Family, to be a nephew of King George III. To reward the bravery of the island's local inhabitants, King George III reportedly issued a decree that Cayman Islanders should never be conscripted for war service, and should never be subject to taxation.
However, no official documentation of this decree has been found. All evidence for this being the origin of the Cayman Islander’s tax-free status is purely anecdotal. Regardless, the Cayman Island’s status as a tax-free British Overseas Territory remains to this day.
Despite several changes of government, the Cayman Islanders remain essentially self-governing.
The tax-free status of the Cayman Islands attracted a lot of business. The Cayman Islands became a sort of no-tell, money hotel.
Under a lot of financial pressure from other Caribbean islands and the United States government, the Cayman Islands began to do a bit of cooperation with the other Caribbean islands and the United States, you note that I say a bit of cooperation.
I talked, very politely, with those who run the financial affairs of the Cayman Islands. I was able to gain information that one William Clart, more than once, transferred to the Cayman Islands sums of money, just below the United States key tax level of $1,000 USD.”
My Corporate Counsel then lectures Billy and his shyster lawyer, “I have also talked with those who run the financial affairs of the Cayman Islands and I have also talked with the relevant United States tax authorities. If William Clart wants a legal battle, I may have trouble getting at William Clart, due to the United States government attorneys in my way.”
Billy’s shyster lawyer then asks, “Has the government of the Cayman Islands then seized the funds transferred by my client, William Clart?”
My Corporate Counsel then laughs and lectures Billy’s shyster lawyer, “I can’t answer that question. Only those who run the financial affairs of the Cayman Islands know. However, don’t ask that question, while you are on Cayman Islands ground.”
My Corporate Counsel and Billy’s shyster lawyer then have a private conversation.
Billy’s shyster lawyer then asks me, “If my client did indeed transfer money to the Cayman Islands and said money is no longer in the Cayman Islands, then where might the money have gone?”
I tell Billy’s shyster lawyer, “You are asking, me for speculation.”
My Corporate Counsel says, “Jake, you may answer the question, as long as it’s understood that your answer is just speculation.”
I lecture, “I have talked with a few people involved with money transfers in the Caribbean. There are, apparently, several small islands that operate as sovereign governments. The islands are as crooked as the night is long. It’s thought that money matters involving the small islands are run by criminal gangs. There is no information available regarding money flows in or out of the small islands.”
Billy’s shyster lawyer then tells me, “My client did indeed transfer money to the Cayman Islands and, as far as we know, said money is no longer in the Cayman Islands. The money that my client transferred to the Cayman Islands and then on from the Cayman Islands has disappeared. My client is now indigent.”
My Corporate Counsel says, “The Internal Revenue Service is not all that interested as to your client’s current financial status, they do want the taxes due on the money that your client apparently once had. Jake, will you tell us about the money that William Clart once had?”
I lecture, “I have traced several instances of William Clart transferring company funds, supposedly intra-company, to a nonexistent company operation in the Cayman Islands. I have used the results of my searches to make claims upon the company insurance coverage.”
Billy’s shyster lawyer then tells us, “My client did indeed transfer money to the Cayman Islands and said money is no longer in the Cayman Islands, the money has disappeared. My client is now indigent, does that not mean anything to you?”
My Corporate Counsel lectures, “My company has filed theft charges against William Clart. The Internal Revenue Service is in the process of filing charges. The insurance company may be in the process of filing charges. It means that your client is in real trouble.”
The shyster then turns to me and asks, “Are you proud of your part in destroying my client?”
I tell the shyster, “I just do my job. The money that your client was siphoning off from my company will now go to expanding the business of my company, creating jobs and feeding families.”
My Corporate Counsel then summons in a police officer and William Clart is led off somewhere, from where he will not return
