Nestled among the entities that were recently exposed from a year-long investigation of millions of documents that contained details about secret offshore holdings by companies and prominent individuals are a trio of inactive U.S. mortgage firms.
The Panama Papers — a cache of of 11.5 million records from nearly four decades leaked from an obscure but powerful law firm in Panama — were revealed last month. The files listed nearly 15,600 paper companies set up for clients.
The repercussions were swift — with the
prime minister of Iceland stepping down after it was revealed he and his wife secretly owned an offshore firm that held millions of dollars in Icelandic bank bonds during that country’s financial crisis.
A team of more than 370 journalists from more than 100 news organizations in 76 countries reviewed the documents, and their findings were published by
the International Consortium of Investigative Journalists.
The files were leaked from Mossack Fonseca, which ICIJ called, “a little-known but powerful law firm based in Panama.” Mossack Fonseca reportedly has branches in more than 35 other places around the world including Hong Kong, Miami and Zürich.
Offshore holdings of 140 politicians and public officials from around the world — including 12 current and former world leaders — were revealed. Others include drug traffickers, billionaires, celebrities and sports stars.
The paper companies were set up by banks,
including thousands created by UBS and HSBC.
But just setting up an offshore entity does not mean any
nefarious activities have taken place.
“Most of the services the offshore industry provides are legal if used by the law abiding,” ICIJ wrote. “But the documents show that banks, law firms and other offshore players have often failed to follow legal requirements that they make sure their clients are not involved in criminal enterprises, tax dodging or political corruption. In some instances, the files show, offshore middlemen have protected themselves and their clients by concealing suspect transactions or manipulating official records.”
On Monday, a list of companies linked to the offshore entities was made available from the trove of documents.
Among them are three U.S. mortgage firms — though all appear to be inactive.
One of the three firms
is 1st International Mortgage Corp., which was incorporated in 1997. The registered address is Westglobe Corporate Services in Bedford, Texas. Nancy Lake is listed as the officer.
The ICIJ report shows the firm’s status as “Dead.”
Crown Mortgage Co. Inc. was the second U.S. mortgage firm listed. But the company, which was incorporated in 1987, shows an inactivation date of March 1990 and a status of “Trash Company.”
The last among the three companies identified is United Mortgage Investment Inc.
United was incorporated in 1994. Listed for its registered address is Kenneth A. Williams in Carson, California. The status for the company is listed as “Dead.”
No information about any of the companies or individuals was located.
