More Money Laundering Charges: Paypal and American Express
A whistle blower has come forth with more than 1,000 pages of documentary evidence that shows PayPal and American Express were both part of one gigantic international money-laundering scheme. The whistle blower involved was part of management – not of American Express or PayPal but of accused money launderer HSBC. Ooo, this gets interesting – we all know figurehead politicians caused death, war and passed unconstitutional legislation but now we got the banksters red handed!
John Cruz is this whistle blower, and he was the relationship manager for the southern New York Region for HSBC. He released his documentation to WND, who he also told in an interview:
“I found many accounts where PayPal and American Express were used as conduits through which hundreds of thousands of dollars were deposited or withdrawn from HSBC customer accounts in a pattern of suspicious transactions that should have been reported to legal authorities under various banking statutes, including the Patriot Act,” said Cruz.
In other words, we have to comply with the “Patriot Act” but American Express and PayPal gets to routinely ignore that law.
Mr. Cruz describes in detail a particular account that also contains the notes left by HSBC personnel on loan and account files to illustrate the many instances where HSBC, American Express and PayPal were involved in highly suspicious activity.
Basically what happened was Cruz visited a business that claimed almost 1 million in annual revenue with an HSBC account and the bank account info did state that the business did bring in that figure in revenues according to records. Cruz found out this company, call it XYZ, was a private house and in it was an Asian man that could barely speak any English, could barely answer any questions and only had basic furniture at his place of business, which led Cruz to note that the business was fraudulent.
Cruz then noticed that according to records, suspicious line items of “41BOOK CREDIT” was put in for a series of deposits from HSBC to XYZ and from PayPal to XYZ – apparently what happened was HSBC gave loans to XYZ, wrote off the loans without having XYZ pay it back and then use PayPal to funnel fresh deposits in as XYZ paid off American Express.
In other words, money was being moved to American Express and Paypal brought the money back in deposits while HSBC was taking the loss and paying for it for giving bullshit loans to a business that doesn’t exist so that a bunch of shady individuals or groups can use clean money.
Cruz tried to report this, but senior management informed him to shut up and sit down. In fact, he said, he was shut off from ever viewing XYZ’s account again. Moreover, Cruz was told by senior management to stand down on other accounts where he noticed similar patterns of suspicious deposits and withdrawals consistent with money laundering behavior.
Story is HERE.
This story is approximately 2 months old, but if you put it together with the recent HSBC MONEY LAUNDERING accusations, I think we have a huge bank about to go down.
Cross your fingers, folks, it’s time to end debt slavery
Posted on Tue Feb 07 2012 10:24:56 GMT-0500 (Eastern Standard Time) by juliosevero
http://www.freerepublic.com/focus/f-bloggers/2843435/posts
http://www.freerepublic.com/focus/f-bloggers/2843435/posts
PayPal implicated in criminal activity
By Julio Severo
WND, which I consider the best conservative newssite in the world, ran an explosive headline yesterday: PayPal implicated in bank fraud.
Who could imagine: PayPal, which moved to exterminate my account, has now become the focus of a money-laundering scandal.
Don Hank, the owner of Laigle’s Forum, had this to say about the WND headline: “Now link this story with the way PayPal heavy-handedly refused service to Julio Severo because his web site opposes gay marriage, and you can see how radical social agendas and their implementation are actually a symptom of a deeper-lying criminal mindset. It is criminal capitalism linked to criminal government (which did nothing to protect Julio), a potent cocktail of pure sleaze.”
In my case, the hostile PayPal behavior was followed by the suspicious behavior of two US gay groups.
On August 21, 2011, the Human Rights Campaign was recorded visiting my blog in a tracking report. This is the most powerful homosexual organization in America. In the next few days, AllOut, a heavily-funded gay group, launched an online petition campaign to have accounts of 10 pro-family groups cut off from PayPal. Even though I am not an organization, my name was included in this public gay campaign, and my account was closed.
The PayPal case, where my situation was mentioned, was mostly covered by the US Christian media. See one of the video reports: http://www.youtube.com/watch?v=eu7FiDhCgSI
WND has also produced an excellent, extensive report: http://www.wnd.com/index.php?fa=PAGE.view&pageId=346825
Last December, PayPal closed my account definitively. To me, PayPal explained that I am ineligible to receive donations from my friends and readers because “you are not a registered non-profit organization”. To AllOut, PayPal explained that they closed my account because “We take very seriously any cases where a user has incited hatred, violence or intolerance because of a person’s sexual orientation”.
Now, I can no longer receive donations from my friends through PayPal.
In a listing of the top ten anti-Christian acts in 2011, the Christian Anti-Defamation Commission ranked the gay pressure on PayPal as fourth top anti-Christian act, as reported by Charisma magazine.
Now, see the giant’s dirty hands that moved against me incited by a US gay group. To read the full report, follow the WND link:
PayPal implicated in bank fraud
Alleged money-laundering scheme by global finance giant involved billions
NEW YORK – A former employee of one of the world’s largest international banks who has provided WND with more than 1,000 pages of evidence alleges the Internet giant PayPal and American Express are implicated in an international money-laundering scheme involving hundreds of billions of dollars.
The whistleblower, John Cruz, was a relationship manager in the southern New York region for the London-based global bank HSBC.
“I found many accounts where PayPal and American Express were used as conduits through which hundreds of thousands of dollars were deposited or withdrawn from HSBC customer accounts in a pattern of suspicious transactions that should have been reported to legal authorities under various banking statutes, including the Patriot Act,” Cruz told WND. (WND source: “PayPal, American Express implicated in bank fraud”)
Portuguese version of this article: PayPal envolvido em atividade criminosa
WND EXCLUSIVE
PAYPAL, AMERICAN EXPRESS IMPLICATED IN BANK FRAUD
Alleged money-laundering scheme by global finance giant involved billions
NEW YORK – A former employee of one of the world’s largest international banks who has provided WND with more than 1,000 pages of evidence alleges the Internet giant PayPal and American Express are implicated in an international money-laundering scheme involving hundreds of billions of dollars.
The whistleblower, John Cruz, was a relationship manager in the southern New York region for the London-based global bank HSBC.
“I found many accounts where PayPal and American Express were used as conduits through which hundreds of thousands of dollars were deposited or withdrawn from HSBC customer accounts in a pattern of suspicious transactions that should have been reported to legal authorities under various banking statutes, including the Patriot Act,” Cruz told WND.
Neither PayPal nor American Express responded to WND email and telephone requests for comment.
As WND reported, Cruz has a raft of customer account records he claims are evidence of an international money-laundering scheme by HSBC, which reportedly is under investigation by a U.S. Senate committee.
To illustrate his point, WND and Cruz selected the bank checking account for a particular HSBC commercial account, called “Company XYZ” for the sake of this article, for the time period July 21 through Aug. 20, 2009.
In the exhibits below, WND has redacted all information that might be used to identify the account holder, including removing the account number from the bank statements.
Company XYZ was identified in HSBC records with the following information:
- It operated out of a private residence in West Hempstead, New York.
- The account owner was identified as being 100 percent owned by a person from Malaysia who had non-resident status in the United States and a permanent address in Malaysia.
- The president of the company was identified being a U.S. citizen, born in Malaysian.
- The account registration was deficient in any meaningful “Know Your Customer” information except to list for the president of the company the numbers of his national identity card, his New York drivers’ license and his U.S. Passport.
- The file described the business as: “WELL KEPT HOME OFFICE, COMPUTER, PHONES, FAX, FILES.”
- The file noted that the business was last paid a site visit on 12/17/2008 by the HSBC branch manager in E. Northport, Long Island.
- The file listed the annual revenue of the company as $1 million.
“When I went to see this business, the address was a two-story house in Wwst Hempstead,” Cruz said. “I knocked on the door, and an Asian gentleman answered the door. In the house there was a wood coffee table in the living room, a red couch and a metal folding chair – nothing else. In the dining room there was a desk, a chair and a phone.”
Cruz said it was difficult to learn anything about the business, because the Asian gentleman did not speak much English.
“My immediate impression was that this was a fake business,” he said.
“I thought there was something really wrong here. For the amount of transactions I saw going through the account, there no evidence of any business taking place here – no packages, no envelopes, no files, no nothing – just an empty desk with nothing on it. There should have been something going on, and all I found was an Asian gentleman who didn’t speak English.”
As seen in Exhibit 1, for the month from July 21 through Aug. 20, 2009, Company XYZ’s revenue was $1,338,151.21, with withdrawals totaling $1,244,632.35, and an ending balance of $261,170.63.
“These figures made no sense to me,” Cruz said, “unless Company XYZ was a shell company set up fraudulently with the only goal of passing money through the account, with the money received from unspecified sources and dispersed from the account to unspecified sources.”
Exhibit 1: HSBC commercial account 7/21/2009-8/20/2009, page 1
Exhibit 2 details Company XYZ’s account activity for the month in question.
In the period July 22 through Aug. 3, 2009, seven different deposits were received from PayPal – all in even amounts, all in multiples of ten thousand dollars.
The account also lists three deposits from “41 BOOK CREDIT” – a line item Cruz said he believes was related to proceeds being deposited into the account from a loan Company XYZ had with HSBC, even though he was never able to confirm the exact nature of the line item.
“The pattern with this account suggest to me that HSBC made a loan to Company XYZ that was deposited into the account, without any indication any of the loan was ever repaid,” Cruz pointed out.
“In other words, the loan functioned basically as a way for criminals within the bank to syphon off bank income to a fradulent company like this, with the intent to let the loan default. The loss on the defaulted loan would then be written off by the bank, despite the adverse impact the fraudulent loan would have on bank earnings and on the bank’s capital ratios.”
In this period only one transaction involved a debit on the account – an online transfer out of the account of $100,000 on July 22, 2009.
“This pattern of deposits from PayPal looks suspiciously like structured transctions, broken up into several different deposits of almost equal amounts, rather than one or two large deposits that might have drawn more bank regulatory attention,” he noted.
Exhibit 2: HSBC commercial account 7/21/2009-8/20/2009, page 2
Exhibit 3 shows that the pattern of transfers into the account from PayPal continued in the period Aug. 3-10, 2009.
On Aug. 5, 2009, the account shows $428,000 was paid out of the account to American Express and that on Aug. 7, 2009, American Express was paid another $76,623.35.
Note also that on Aug. 4, 2009, a credit of $427,000 was deposited into the account by an online transfer, the day before the payment on Aug. 5, 2009, was made to American Express in an almost identical amount, $428,000.
Exhibit 3: HSBC commercial account 7/21/2009-8/20/2009, page 3
Exhibit 4 shows an opening balance on Aug. 10, 2009, of $266,215.63.
On the same day, Aug. 10, 2009, $300,000 was transferred out of the account, reducing the balance in the account to $66,215.63.
In the remaining nine days ending on Aug. 19, 2009, a series of four deposits from PayPal – again, each in even multiples of $10,000 – rebuilt cash in the account, topped off by two additional credits into the account from “41BOOK CREDIT.”
As a result, Company XYZ ended the statement period on Aug. 19, 2009 with a balance of more than a quarter million dollars – $261,170.63.
Exhibit 4: HSBC commercial account 7/21/2009-8/20/2009, page 4
Cruz reported the account to senior bank security to no avail.
“The operations manager in East Northfork, New York, told me this account was to stay open per ‘the instructions of senior management,’ and that I should stop worrying about this account because I had nothing to do with it.”
After this, Cruz was blocked from accessing the HSBC bank computer system to view Company XYZ’s account.
“Unfortunately at HSBC, I saw more fraudulent accounts like Company XYZ than I saw real accounts with legitimate companies transacting actual business,” he said.
“In all the months I examined Company XYZ’s account, I never saw a single business check go through the account that I can remember. All I saw was wire transfers comining in from PayPal and a bank source that looked like a loan, and wire transfers going out, with six-figure payments to American Express.”
Cruz stressed that the account statements of Company XYZ had the profile of a money-laundering conduit, not a legitimate company doing actual business.
“This is the kind of account that should have been reported to the legal authorities, with suspicious transaction reports filed on every transaction,” he said. “But, instead, HSBC did nothing but block me from reporting what I suspected was illegal activity.”
Previous stories:
WND EXCLUSIVE
BIG BANK RETALIATES AGAINST WND FOR EXPOSÉ
HSBC lodged complaint with Internet provider to cut off access
The global banking giant HSBC lodged a complaint that blocked access to a WND story reporting a whistleblower’s charge that the London-based corporation has engaged in a massive international money-laundering scheme.
The story by WND senior staff writer Jerome Corsi –“PayPal, American Express implicated in bank fraud” – included redacted images of customer account statements that HSBC claimed was an illegal disclosure of personally identifiable information.
No personal information was visible in the images, however.
HSBC filed the complaint Feb. 9 with a WND Internet service provider, EdgeCast Networks. Access to the article was blocked, but the Internet provider restored access after three hours when an investigation concluded the complaint was unwarranted.
HSBC never contacted WND about its complaint with the story, noted WND CEO Joseph Farah.
“I’ve been in journalism for 30 years and in Internet journalism for 15 years,” Farah said. “In all that time I have never seen such a blatant and temporarily effective effort at raw censorship by a powerful institution – in this case, one of the world’s largest banks.”
Farah said that without “any accusation or evidence of wrongdoing, HSBC used its clout to block our content.”
As WND reported, the whistleblower – former HSBC southern New York region relationship manager John Cruz –has 1,000 pages of customer account records he claims are evidence of an international money-laundering scheme by the bank, which reportedly is under investigation by a U.S. Senate committee.
HSBC did not respond to requests to comment on its blocking of the article and also turned down another opportunity to answer Cruz’s accusations.
“HSBC still refuses to answer why it is prospering at the expense of identity-fraud victims,” Farah said. “It still refuses to answer questions about money-laundering allegations being made by a whistleblower who worked within the company. It refuses to explain the anomalies we see in the thousands of banking records we have reviewed.”
Corsi explained that before posting the HSBC customer account records to illustrate Cruz’s charges, any personal information was redacted.
He added that WND is in the process of sharing the customer records with federal investigative law enforcement agencies. Future articles on Cruz’s charges are under way, Corsi said.
“We’re determined to fulfill our obligations under the First Amendment to pursue and report to our readers investigations of financial impropriety when credible allegations of wrongdoing come to our attention,” he said.
Anthony Citrano, EdgeCast’s vice president for communications and marketing, explained that his company moved quickly on HSBC’s request because EdgeCast can be held liable under laws such as the Digital Millennium Copyright Act for delivering illegal content.
“Someone was a little too cautious, and that meant the article wasn’t available for a period of time, and we’re sorry about it,” he told WND.
Previous stories:
Leslie from the fraud department of PAYPAL have you closed these accounts YET? Now this is the Real Fraud ! Everyone who has been scammed by Leslie call her and ask her why PayPal laundered drug money.402-952-8460 I am wondering why PayPal have not called me on I am listening America to answer these questions!
Just want you to note that Pay Pal is owned by Ebay and Ebay's owner is a Muslim from Iran who was brought up in France. Married an American women and has hidden the fact he is Muslim and owns Ebay. His name is Pierre Morad Omidyar (Persian:پیر مراد امیدیار,born June 21, 1967) PayPal also exchanges funds for Viva Palestina which funds Hamas. He also permits hate items sold on Ebay telling Muslims to kill Jews and Christains.
| پیر مراد امیدیار Pierre Morad Omidyar | |
|---|---|
 Pierre Omidyar at his Las Vegas home in 2007 | |
| Born | June 21, 1967 Paris, France |
| Residence | Las Vegas, Nevada, U.S.[1] Honolulu, Hawaii, U.S. |
| Occupation | Founder and Chairman, eBay Inc. |
| Net worth | $6.7 billion (2012)[2] |
| Spouse | Pamela Kerr Omidyar |
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