Sanitised case 21
Y is an “entrepreneur” in a highly regulated low risk jurisdiction. Y established a Jersey company for the purpose of acquiring a cruise ship that would be used for river cruises. The purchase price of the cruise was £12 million and the funding would come from the personal assets of Y. It was noted that the company was starting to become involved with other activities unrelated to river cruises.
It soon became apparent that payments which were not all consistent with the activities envisaged at the time the company was established and Y offered explanations that did not seem to have any commercial rationale or connection to the proposed purpose of the company.
Information was received that Y had been arrested in one jurisdiction and extradited to the low risk jurisdiction where he resides. According to Open Source Material Y’s business revenue had been artificially inflated and a leasing scam had been instigated, effectively defrauding banks and private investors for over US$ 400 M making this the biggest financial fraud case in this jurisdiction in recent decades.
Information was shared with the law enforcement authorities of the relevant jurisdiction which aided their investigation.
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