This DD, the billionaire boys club part 10 is the latest instalment in the series of citizen journalism attempting to uncover and expose the super wealthy, and particularly those involved in international finance. This one focuses on offshore accounts, and how the super wealthy hide their money.
Billionaire boys club part 10: All inclusive Vacation of a Lifetime - To the Caymans!
AUTHORS DISCLAIMER: I am not a financial advisor, and I do not provide financial advice. Many thoughts here are my opinion, and others can be speculative.
Everything I am highlighting here is asking questions about publically available information and not an accusation of any wrongdoing of any parties mentioned.
Also... I'm not financially trained, so feel free to correct me if I miss something or get something wrong!!
TO GIVE SOME CONTEXT:
Citadel Assets Under Management (AUM) = $35 Billion as of Oct 2020
Estimate Cost to CURE world hunger by 2030 = $330 Billion also as of Oct 2020
(Source)
How much money does Kenny keep in the Caymans in his Private Funds? = $269 BILLION (Nice!) - Spread across 16 Funds in the Caymans as of 2021-03-31
- Not exact as it's way too many digits to type into my Calculator...
(I wonder why he likes to setup his funds there? Must be the WEATHER!... ya that's it, the WEATHER!)
(Source)
As of 2020-11-25 he had $254.2 Billion Parked in his Sunny Paradise
As of 2020-05-28 he had $265.5 Billion Parked in his Sunny Paradise
As of 2020-03-30 he had $259.6 Billion Parked in his Sunny Paradise
So it does seem like there is quite a bit of movement throughout the year through these funds...
Anyway...
I decided to look into some of them.
BUT BEFORE WE DO...
DID ANYONE HAPPEN TO NOTICE THIS?
As of first quarter 2021, Citadel Advisors LLC ran a Private Equity funding of $85 million for BLIZZARD??
I wonder why Kenny wants to get directly involved in the gaming world????
---------------------------------------------------------------------------------------------------------------------------------------
The biggest fund by far is the CITADEL GLOBAL FIXED INCOME MASTER FUND LTD.
Last Reported, this had $117 Billion in it.
According to their 13F filings, Kenny owns 5% of these funds directly through CITADEL ADVISORS LLC and 75% of these funds indirectly through CITADEL GP LLC
- But OBVIOUSLY other investors are putting money in here. This is not all Kenny's Money.
CITADEL GLOBAL FIXED INCOME MASTER FUND LTD listed their FORM D with the SEC, to qualify as a Cayman Islands Tax Exempted Company here
(Source)
Listed as the Related Persons to this Form D are the following:
- Shawn Fa gan - We know him
- Kirk Davis - Pin High Limited - Bermuda
- Peter Huber Maples Fiduciary Services - Cayman Islands
- Clarendon Masters - Midsea Consulting Limited - Bermuda
So... a quick search on Offshore Leads Database, gives us an idea of the players involved here... how they are connected, why some are based in Bermuda and some in the Caymans, and introduces us to a few more NEW players and rabbit holes to go down.
(Source)
But let's come back to this...
FIRST... as good Ape DD demands... let's check if this pattern persists shall we?
---------------------------------------------------------------------------------------------------------------------------------------
POINT72 - Cayman Islands
$113,025,630,560 across 9 Funds in the Caymans as of April 2021
AQR Capital Management - Cayman Islands
$38,950,849,358 across 31 funds in the Caymans as of May 2021
Bridgewater Associates - Cayman Islands
$92,905,829,957 across 26 funds in the Caymans as of Mar 2021
Millennium Management - Cayman Islands
$295,029,150,000 across 4 funds in the Caymans as of Mar 2021
Tiger Global Management - Cayman Islands
$82,946,312,380 across 12 funds in the Caymans as of Mar 2021
---------------------------------------------------------------------------------------------------------------------------------------
So it's safe to say... the pattern holds up.
And of course... Finance Guys using LEGAL offshore accounting practices to avoid tax is nothing new.
I'm sure most of you just assume this happens, but it's how it's stacked against us that gets me really pissed off.
But before we blow a gasket...
---------------------------------------------------------------------------------------------------------------------------------------
PUPPY BREAK!!
Awww... look at you in your suit! Aren't you so cute! Are you dressed up for a job interview???
I hope you're not applying to be a banker!
---------------------------------------------------------------------------------------------------------------------------------------
So the whole thing about Offshore accounts...
We know people get in trouble for that shit.
But it is LEGAL... once it's SETUP right.
But who the fuck knows if it's setup right or not?
You think you could go out there and setup an offshore account yourself so you can keep your Post Moass profits tax-free?
You think your local accountant around the corner can do that with 100% confidence he's not going to fuck it up and get you arrested?
But Hedgefunds fucking know...
BUT... they can't just open that up as a service to the general population otherwise NOBODY would be paying tax and the government would not be able to function...
So what do they do?
They set massive MINIMUM REQUIREMENTS to be even considered entry into these funds (Which is 100% legal of course)
But basically... this LEGAL rule means this…
Work 9-5 pay taxes
Get a pay rise for working harder... pay MORE taxes
Figure out a way to make $10 million... don't worry about paying ANY taxes anymore.
---------------------------------------------------------------------------------------------------------------------------------------
Citadel Fund Minimum Requirements
CITADEL EQUITY FUND LTD. - $0
CEIF INTERNATIONAL LTD. - $0
CITADEL MULTI-STRATEGY EQUITIES MASTER FUND LTD. -$0
CITADEL ENERGY INVESTMENTS LTD. - $0
CITADEL KENSINGTON SIF 1 LTD. - $200,000,000
CITADEL TREASURY INTERNATIONAL LTD. - $0
CITADEL KENSINGTON GLOBAL STRATEGIES FUND LTD. - $10,000,000
CITADEL TACTICAL TRADING LTD. - $100,000
CITADEL GLOBAL FIXED INCOME MASTER FUND LTD. - $0
CITADEL GLOBAL FIXED INCOME FUND LTD. - $10,000,000
CITADEL QUANTITATIVE STRATEGIES MASTER FUND LTD. - $0
CITADEL PRESIDIO FUND LLC - $150,000,000
CITADEL KENSINGTON GLOBAL STRATEGIES FUND II LTD. - $10,000,000
CITADEL EQUITIES FUND LTD. - $10,000,000
CITADEL TACTICAL MASTER FUND LTD. - $0
But what about the funds that have $0 minimum requirements Mr BadassTrader? Can I get into one of those?
No dearest sweet ape… no1 gets into those!
---------------------------------------------------------------------------------------------------------------------------------------
So how do Citadel Do it?
Before I dive in… JUST REMEMBER... this part is SPECULATION… because 1, I can’t prove anything and 2, this is ENTIRELY LEGAL anyway!
Ok, so let's pretend for a minute that I'm Ken Griffin (Urrgh)... and I want to hide some money offshore for both myself and my clients so we don't have to pay pesky taxes like regular people...
What do I do?
SIMPLE!
I pick up the phone to my friends at PricewaterhouseCoopers LTD. and I ask them, to set me up a company in the Bahamas that I can trade money through.
You see, as Ken Griffin, I already know that PricewaterhouseCoopers are EXPERTS at setting up these funds offshore... here's a few more they have done:
(Who better to have setup your tax haven's than your Tax Auditor??)
And PWHC are SUCH experts at this, that they have the FORMULA down to a TEE...
To start, in order to make the company appear legit... you NEED A MAN ON THE GROUND!
That's where Kirk Davis comes in...
See PWHC know Kirk Davis well, they know he can be trusted and probably won't ask too many questions once we keep him on a good payroll...
In FACT... they have used him several times before:
President and Director of Constellation Investment Partners Ltd... also AUDITED by PWHC
President and Director of Slayden Partners Ltd... also AUDITED by PWHC
And in FACT... Kirk has an AMAZING CV... he is listed as President, Director or Secretary on 48 different companies (THAT WE KNOW OF) and funds setup under Bermuda Jurisdiction!
So let's give Citdel's Kensington Fund to Kirk! He's our man!
---------------------------------------------------------------------------------------------------------------------------------------
Think it's just a coincidence?
Meet Edward Stern... President and Director of 9 different PWHC funds...
Source1 Source2 Source3 Source4 Source5 Source6 Source7 Source8 Source9
And more outside of PWHC
---------------------------------------------------------------------------------------------------------------------------------------
Next on the list... We need a secretary on the Ground...
Same principle as before, but this time we will use Janet Moore (Secretary for 71 funds)
Now, we are also going to need a Trustee... and that's gotta be Appleby Services...
(Trustee for 3,449 funds and entities under Bermuda Jurisdiction)
Ok...
Now we're rocking...
We've paid off everyone we need to pay off... we have our "STAFF" on the ground so everything LOOKS legit and we've covered all the legal requirements...
Mr Griffin... your TAX-FREE COMPANY is ready to go...
GREAT! Let me wire transfer $13.2 Billion
And that Apes and Apettes, is how we setup a LEGAL tax-haven that has NO regulatory requirements, and can take money from anyone in the US and transfer it offshore.
Pretty neat huh?
---------------------------------------------------------------------------------------------------------------------------------------
Now... just remember that in 2013, the US Government blocked American's from using these tax havens
But I sure am glad they kept the back door open for the super-rich... RIGHT?
And according to this report, this accounts for $400 billion in tax losses EVERY YEAR...
But honestly... I think that figure is MASSIVELY underestimated, as it's global across ALL tax havens and what I've listed above is just a few hedge funds in 1 destination!
The entire series is listed below:
| Part 1: Is this the final boss? | Read On Hive |
| Part 2: The Inner Circle | Read On Hive |
| Part 3: The Big Boys | Read On Hive |
| Part 4: Recess is over | Read On Hive |
| Part 5: Foundational Strategy | Read On Hive |
| Part 6: Smile for the Camera, Kenny | Read On Hive |
| Part 7: What DAF F**k is This? | Read On Hive |
| Part 8: The Chips are Stacked Against Us | Read On Hive |
| Part 9: Steve Cohen | Read On Hive |
| Part 10: Vacation of a lifetime | Read On Hive |
| Part 10.2: Cayman Island Getaway | Read On Hive |
| Part 11: Buy Borrow Die | Read On Hive |
| Part 12: Specialized Purpose Entities | Read On Hive |
This post entitled ‘billionaire boys club part 10’ is an unedited reproduction of some DD posted by u/BadassTrader on Reddit. KenGriffinLies.com does not endorse nor guarantee the accuracy of the information presented within. This article is for entertainment purposes only, and is being backed up to the HIVE blockchain to preserve it. We take no credit whatsoever for this article.
Please read our legal disclaimer.
This information is not financial or legal advice, and is presented for entertainment purposes only. See more about the community at KenGriffinLies.com