Ponzi schemer given prison time for Canadian-run offshore corporations

Written by Editor M.A. Stambaugh-Elliott for CNN

A man who helped set up more than 100 offshore companies has been sentenced to prison in Canada after pleading guilty to helping rich people hide their money offshore.

George Boernman, 69, pleaded guilty to two counts of providing documents and services under the Canada Revenue Agency Act for schemes that resulted in “special consideration” being given to foreigners, which included entering into agreements to pay the “fines and penalties,” according to his plea agreement.

Boernman was sentenced to four years, three months in prison in October, according to news reports.

Boernman used his foreign firms to effectively create false and misleading signatures for the taxman to show that the offshore profits that were truly held were transferred directly from countries like the United States, the Toronto Star reported. These offshore corporations were hidden through fabricated correspondence and deposits, according to the court documents.

Canadian authorities set up two offshore enclaves in New Jersey and Puerto Rico under an agreement with the Central Intelligence Agency to support their investigation into Boernman, according to the Star.

A criminal case in Canada resulted in Boernman pleading guilty in June 2017 to perjury. The accusations against him in Canada were brought forward from the criminal case in New Jersey and involved a separate scheme.

Boernman’s case reveals some of the Canadian government’s “turning a blind eye” to offshore schemes.

According to the CBC, Boernman would help foreign clients hide their offshore investments in offshore holding companies by creating fictitious invoices from offshore firms he created in the United States or Mexico.

The big problem in Canada is that Canada lacks “full-scope resources and guidance” to investigate offshore tax havens, the CBC report said.

Boernman already served 23 months in prison in the United States.

Copyright 2018 by CNN NewSource. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Leave a Comment