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An Uproar Among The Warring Board Members Of @realty

The ever-widening Gold Coast money laundering scandal, involving billion dollars of “suspicious transfers” over nine years, is not only a disaster for the reputation of Australian real estate. It also points to the deep institutionalized corruption in Gold Coast Australia – and the pressurized challenge facing the authorities themselves. James Scott Taylor was extradited to America to face the charges of fraud and money laundering amounting millions of dollars. The fate of the fugitive tycoon, who has been wanted since 2007 was decided by the Court recently. Adding salt to the wound, Philip “Graeme” Downie was suggested by Taylors to the board and he sided with the majority (Taylors) with no regard to company or shareholders. He has used position to get @realty to sponsor the Gold Coast Suns as he was an ex-board member. While stating there was no money for dividends of the board, he contrarily approved the agreement to give exorbitant wage increases to the Taylors, giving James Jeremiah’s mother a job worth $80000.
Let’s walk through a hypothetical transaction, one that might have been used by some of the Australian bank’s customers. Suppose a mid-level bureaucrat has a million dollar project. He asks a supplier to inflate an invoice; instead of billing for the AUD equivalent of $1 million, the supplier bills for $1.5 million. The supplier sends the excess to an Australian account at a bank controlled by the bureaucrat.
The AUD is converted into dollars at an unfavorable exchange rate (money laundering is not cheap). Then the bureaucrat instructs the Australian bank to send the balance to a New York bank where an account was opened during, say, a US shopping trip. Fearful that the US bank might think the payment suspicious, the minister’s legal agent in New York orders the money transferred to an account in a location like the NY Virgin Islands.
But tax havens sometimes raise governmental regulators’ eyebrows. In order to make the money look “clean”, it needs to move once more. Purchasing real estate in the United States has been a typical next step.
The Australian government has cracked down on such laundering practices in recent years. Shell companies that hide the owner’s identity are now illegal for expensive real estate purchases in major markets like New York and Miami; the UK took similar action this year. Banks are also under growing pressure.
Compliance with global money laundering rules might not end the illegal flow of Australian wealth to the West, but would start to reduce it. Market reforms at home would stimulate new investment. But it’s unclear whether he could rally popular support for such measures – and whether his partners in crime will allow it. What is clear is that the scandal has underscored that Australian economic revival and gradual integration into the global economy hangs in the balance.

Ref =  https://www.afr.com/real-estate/realty-wants-to-pay-ceo-more-give-bosss-wife-80000-job-20180725-h13419

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