Friday, February 13, 2009

Carlyle Group's Micro Office in the Cayman Islands

The Carlyle Group runs a $230 million offshore investment firm from the Cayman Islands. They pay a Swiss Bank to handle TCG Ventures' correspondence. Would their office be located in the Ugland House? The building houses 18,857 offshore corporations.

Would UBS, the other offshore tax cheating facilitator, be the Swiss Bank? UBS illegally sheltered income for 18,000 Americans. The IRS responded not by investigating the names on their list. Instead, they had UBS send a letter to the tax cheats. It basically said, if you claim this account, you'll be turned over to the IRS. How much free money did Phil Gramm's company garner?

Back to the Carlyle Group, the latest offshore tax cheats. Sixty seven wealthy companies and individuals ponied up the $230 million. The Guardian reported many of the owners were concealed behind corporate names and other offshore accounts.

Note that Carlyle co-chairs two international study groups reforming the global financial system. David Rubenstein chairs the World Economic Forum effort, while Arthur Levitt chairs another industry study group. I bet they retain their preferred status.