EFTA00632292.pdf

From: "Kobre & Kim" < To: "Jeffrey Epstein" <[email protected]> Subject: Kobre & Kim Update: Assets in the Cook Islands Are Now Easier for the U.S. Government to Reach: What You Need to Know Date: Mon, 17 Jul 2017 16:00:42 +0000 View this email online New York I London I Hong Kong I Seoul I Washington DC I San Francisco I Miami I Cayman Islands I British Virgin Islands FORWARD SUBSCRIBE WEBSITE CONTACT DOWNLOAD Assets in the Cook Islands Are Now Easier for the Kobre & Kim's Asset U.S. Government to Reach: What You Need to Know Forfeiture Defense Contacts July 17, 2017 The Cook Islands — once publicly described as a "paradise of untouchable assets' — has just passed legislation that makes asset forfeiture by the U.S. government easier and more far-reaching. Yielding to pressure from the international onshore community, the Parliament of the Cook Islands handed the U.S. Department of Justice (DOJ) a potent new weapon in its aggressive campaign to confiscate proceeds of crime and other assets of investigation targets. Jason A. Masimorc London Email Here are some key considerations for Cook Islands account holders and those who represent them: The U.S. government now has broader powers to freeze assets in the Cook Islands. Previously, the DOJ could only apply for assistance, such as freeze orders, in criminal matters. But the new Cook Islands legislation treats civil forfeiture cases as if they were criminal cases, which allows the DOJ to obtain freeze orders in connection with civil forfeiture cases — a new and powerful tool for prosecutors. Indeed, U.S. prosecutors often use civil forfeiture actions to seize proceeds of crime when they are concerned that they cannot obtain criminal Robin Rathmell London Washington DC convictions or successfully extradite defendants. Email The U.S. government does not have to trace the assets to criminal activity to freeze them. Even more striking, the new Cook Islands laws allow the DOJ to freeze substitute assets — that is, assets untainted by any connection to a crime. The assets need only be in an amount equal to alleged proceeds of a crime and located in the Cook Islands, which the new legislation defines as "property of a corresponding value." U.S. authorities do not even possess such broad power in EFTA00632292  their own country; U.S. federal law does not permit U.S. courts to freeze untainted assets before a trial, even in amounts equal to allegedly tainted proceeds that have been dissipated. Banks and other financial institutions now bear increased responsibility to cooperate with U.S. authorities, and not Just the DOJ. Cook Islands authorities could previously reject foreign assistance requests if they ran counter to local confidentiality laws or related only Roger A. Burlingame to foreign tax investigations. The new legislation expressly forbids London Cook Islands authorities from rejecting foreign requests solely on those bases. This opens the possibility for Cook Islands bank accounts to face intense scrutiny from the U.S. Internal Revenue Service, similar to recent international operations undertaken against Swiss bank accounts. For these reasons, lawyers and wealth managers with clients who have assets in the Cook Islands and face potential U.S. investigations should be well-informed about the increased litigation risk they may face. Michael S. Kim London / New York / Seoul About Kobre & 'Gm's Asset Forfeiture Defense Team: Email Kobre & Kim is a conflict-free global law firm focused on disputes and investigations, often involving fraud and misconduct. Often working with other law firms as special counsel, our global government enforcement defense team has handled some of the largest asset forfeiture and asset freezing cases, with a successful track record of convincing the U.S. government to unfreeze assets or reduce forfeiture requests that often have hundreds of millions of dollars at stake. We regularly advise in contentious matters that involve misappropriation of assets. Steven G. Kobre New York The team includes more than a dozen former U.S. government prosecutors Email and lawyers who have held leadership positions at the U.S. Department of Justice and the U.S. Securities and Exchange Commission. Our cross- disciplinary team is qualified in multiple jurisdictions across the U.S., EMEA, Asia and the Caribbean. www.kobrekim.com Tim Prudhoe British Virgin Islands/ Turks and Caicos Islands Email Government Enforcement Defense Intellectual Property & Technology Litigation Investigations & Monitorships Insolvency & Debtor-Creditor Disputes • International Judgment Enforcement & • Joint Venture & Partnership Disputes Offshore Asset Recovery • Trusts & Estates Litigation • Financial Products & Services Litigation EFTA00632293  New York I London I Hong Kong I Seoul I Washington DC I San Francisco I Miami I Cayman Islands I British Vugin Islands This content provides information on legal issues and developments of interest to our clients and friends and should not be construed as legal advice on any matter, specific facts, or circumstances. The distribution of our content is not intended to create, and receipt of it does not constitute, an attorney-client relationship. © 2017 Kobre & Kim LLP. Attorney Advertising. Prior results do not guarantee a similar outcome. To update your information, please email Unsubscribe EFTA00632294