The Puppet Masters: How the Corrupt Hide Stolen Assets Using Legal Structures and What to Do About It

How the Corrupt Hide Stolen Assets Using Legal Structures and What to Do About It

A Significant Challenge

This report casts light on how corporate vehicles are misused to conceal the proceeds of
grand corruption. It describes how providers of legal, financial and administrative
(management) services—including banks, financial institutions, lawyers, accountants,
and other professionals that are known as trust and company service providers
(TCSPs)—can be employed to facilitate such schemes. While this report focuses on
the use of front companies and the abuse of corporate opacity to conceal corruption,
the weaknesses highlighted in this report are not specific to corruption. There is evidence
of similar misuse of legal entities, legal arrangements as well as charities in the
context of other criminal and illicit behaviors, including escaping international sanctions
and the funding of terrorist organizations.

Puppet Masters aims to support countries’ efforts to meet international standards that
were developed in recent years to help combat financial crime, including grand corruption, money laundering and terrorist financing.

Appendix D entitled “Grand Corruption” contains summaries of 10 cases of which two are LINDQUIST cases:  on page 171 “Bruce Rappaport and IHI Debt Settlement” and on page 207 “Piarco International Airport Scandal”.

pdf Read the Report