The wash and spin of looting

CRIMINALS: CREATE LABYRINTH OF FINANCIAL SECRECY AND HIDING PLACES WHILE LIVING IT UP

- Hein Kaiser

Money laundering, tax evasion and the clever concealment have of wealth become a pastime of the rich and notorious in South Africa.

According to forensic investigator Chad Thomas of IRS Forensic Investigations the methods used to hide wealth are increasingly sophisticated, yet sometimes frighteningly simple.

Laundry lists include everything from luxury cars, to property purchases, said Thomas.

"What we're seeing is people living lavish lives, but on paper, they own Pictures nothing," he said.

Assets like supercars or high-end properties are often purchased through juristic entities, such as trusts or companies.

"They leave the vehicles or properties under someone else's name, often a nominee or a family member, so it's difficult to trace the asset back to the person who is actually benefitting from it." Expensive cars are also bought and never taken home. Often dealers rent parking bays to customers who leave the vehicles on the showroom floor, hiding assets in plain sight.

Thomas said these practices are not limited to high-profile tenderpreneurs, whose wealth continues to dig deep into taxpayer pockets.

Many individuals involved in so-called whitecollar crime, tax evasion, or illicit business dealings, employ the same tactics.

"Whether it's government contracts, tax evasion schemes, or even proceeds from drug trafficking, the goal is the same: to enjoy the luxury without it coming back to haunt them," Thomas said.

The use of special purpose vehicles, trusts, and companies have created a labyrinth of financial secrecy and hiding places, allowing for a life in the shadows, while driving Italian sports cars and residing in mansions - all with a healthy measure of deniability.