Bosnian Army Guard Convicted of War Crimes Pleads Guilty to Fraudulent 2002 U.S. Citizenship

Posted: 12:03 am ET
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Via USDOJ:  Former Bosnian Army Prison Guard Pleads Guilty to Fraudulently Procuring U.S. Citizenship

A Jacksonville, Florida, man pleaded guilty today for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.

Slobo Maric, 56, pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida.  Sentencing has not yet been scheduled.

According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden, of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers.  Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation, including by referring to them with ethnic slurs and spitting on them.  According to the plea agreement, Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict.  The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners.  According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship.  Maric became a naturalized U.S. citizen on Oct. 31, 2002.

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center.

Trial Attorneys Clayton O’Connor, Sasha Rutizer and Christina Giffin and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Dale Campion of the Middle District of Florida are prosecuting the case.

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Renunciation of U.S. Citizenship May Not Necessarily Keep the Tax Man Away

Posted: 4:08 am EDT
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Via MainSt:

Last year, 4,279 U.S. citizens ended their long-term U.S. residency, according to the Treasury Department. That’s up 25.3% from the 3,415 individuals who shed their U.S. citizenship in 2014 and just adds to the 10,693 total who dropped their citizenship between 2013 and 2015.
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Passed in 2010 as a means of cracking down on tax dodgers, FATCA implemented rigid reporting rules for overseas banks and investment firms that hold the assets of U.S. citizens. It also imposes similarly strict rules on U.S. citizens who hold money in foreign accounts. Because the more underhanded elements of U.S. business made a habit of using accounts in Switzerland, the Cayman Islands and elsewhere to shield taxable income from the U.S. government, FATCA uses huge penalties to drop the hammer on those who won’t comply.

Read more below:

Renunciation of U.S. citizenship may not necessarily keep the Internal Revenue Service away. Last month, the Justice Department announced that a former U.S. citizen pleaded guilty to tax fraud related  to his Swiss financial account.  The DOJ announcement does not mention the Foreign Account Tax Compliance Act (FATCA) but it says that in 2012, the individual who has resided in Switzerland since 2007, went to the U.S. Embassy in Bratislava, Slovakia, to renounce his U.S. citizenship and informed the U.S. Department of State that he had acquired the nationality of St. Kitts and Nevis by virtue of naturalization. Below is part of the DOJ announcement:

Former U.S. Citizen Pleads Guilty to Tax Fraud Related to Swiss Financial Account

Used Hong Kong Entity and Foreign Accounts in Switzerland, Monaco and Singapore to Conceal Funds

A former U.S. citizen residing in Switzerland pleaded guilty today to one count of filing a false income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.

“U.S. taxpayers have been given ample opportunity to come forward, disclose their secret foreign accounts, and come into compliance,” said Acting Assistant Attorney General Ciraolo.  “Those individuals and entities who rolled the dice in the hope of remaining anonymous are facing the consequences.  The Tax Division remains committed to investigating and prosecuting individual taxpayers with undeclared foreign financial accounts, as well as the financial institutions, bankers, financial advisors and other professionals who facilitate the concealment of income and assets offshore.  And as today’s guilty plea clearly indicates, the department’s reach is well beyond Switzerland.”

According to court documents, in 2006, Albert Cambata, 61, established Dragonflyer Ltd., a Hong Kong corporate entity, with the assistance of a Swiss banker and a Swiss attorney.  Days later, he opened a financial account at Swiss Bank 1 in the name of Dragonflyer.  Although he was not listed on the opening documents as a director or an authorized signatory, Cambata was identified on another bank document as the beneficial owner of the Dragonflyer account.  That same year, Cambata received $12 million from Hummingbird Holdings Ltd., a Belizean company.  The $12 million originated from a Panamanian aviation management company called Cambata Aviation S.A. and was deposited to the Dragonflyer bank account at Swiss Bank 1 in November 2006.

“IRS Criminal Investigation will continue to pursue those who do not pay the taxes they owe to the United States,” said Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office.  “Today’s plea is a reminder that we are committed to following the money trail across the globe and will not be deterred by the use of sophisticated international financial transactions that hide the real ownership of income taxable by the United States.”

On his 2007 and 2008 federal income tax returns, Cambata failed to report interest income earned on his Swiss financial account in the amounts of $77,298 and $206,408, respectively.  In April 2008, Cambata caused the Swiss attorney to request that Swiss Bank 1 send five million Euros from the Swiss financial account to an account Cambata controlled at the Monaco branch of Swiss Bank 3.  In June 2008, Cambata closed his financial account with Swiss Bank 1 in the name of Dragonflyer and moved the funds to an account he controlled at the Singapore branch of Swiss Bank 2.

In 2012, Cambata, who has lived in Switzerland since 2007, went to the U.S. Embassy in Bratislava, Slovakia, to renounce his U.S. citizenship and informed the U.S. Department of State that he had acquired the nationality of St. Kitts and Nevis by virtue of naturalization.

U.S. District Judge Claude Hilton of the Eastern District of Virginia set sentencing for April 15.  Cambata faces a statutory maximum sentence of three years in prison and a fine of up to $250,000.  As part of his plea agreement, Cambata agreed to pay $84,849 in restitution to the Internal Revenue Service (IRS).

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. For access to the regulations and administrative guidance related to FATCA and to learn about taxpayer obligations visit the Internal Revenue Service FATCA Page.

Click here for the list of countries where the United States has an agreement under FATCA.

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Man without a Country? Expatriation of a U.S. Citizen (Via CRS)

— Domani Spero
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Some Members of Congress have advocated and sponsored bills for expatriation, one way of losing citizenship, as a method of dealing with U.S. citizens fighting abroad for foreign terrorist groups such as the Islamic State in Iraq and Syria (ISIS). In early September S.2779 was introduced in Congress to amend section 349 of the Immigration and NationalityAct to deem specified activities in support of terrorism as renunciation of U.S. nationality.

Below via the CRS:

The current law enumerates seven actions that may result in the expatriation of a U.S. citizen, regardless of whether that person is a citizen by birth or naturalization. These acts demonstrate an allegiance to another nation which may be incompatible with allegiance to the U.S. The most relevant acts for the pending bills include: (1) taking an oath of allegiance to a foreign state or one of its political subdivisions; (2) serving in the armed forces of a hostile foreign state or serving as a commissioned or non-commissioned officer in the armed forces of any foreign state; and (3) serving in any office, post or employment under a foreign state’s government after turning 18 years old, if one is also either a dual national of that state or is required to swear or declare allegiance to that state for the position. For these particular acts, a citizen cannot be expatriated while he is in the U.S. or its possessions. However, acts committed in the U.S. or its possessions can be grounds for expatriation once the citizen leaves the U.S. and resides outside of it and its possessions. Also, a citizen who asserts his claim to U.S. citizenship within six months of becoming 18 years old cannot be expatriated because of serving in the armed forces of a foreign state or making a formal renunciation abroad before a U.S. diplomatic or consular official before the age of 18 years.
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None of the acts listed above result in expatriation unless committed voluntarily and with the intent to relinquish citizenship. These requirements are derived from U.S Supreme Court interpretation of the constitutional requirements for expatriation. In Afroyim v. Rusk, the Court found that the Citizenship Clause of the Fourteenth Amendment prevents Congress from legislating the automatic loss of citizenship acquired by naturalization or birth in the U.S. merely because of specified conduct, without the citizen’s assent. Then, in Vance v. Terrazas, the Court elaborated on its earlier Afroyim decision by holding that the U.S. Government must prove specific intent to renounce citizenship. The current expatriation statute requires that the burden of proof is on the party claiming that expatriation occurred, i.e., the U.S. Government, to establish the claim by a preponderance of the evidence. Any act of expatriation will be presumed to have been done voluntarily, but the presumption may be rebutted by a preponderance of the evidence that the act was not done voluntarily. In Terrazas, the Court upheld these statutory evidentiary standards as constitutional, but in light of Afroyim and the Fourteenth Amendment, it held that no presumption of intent arises from an expatriating act. The Court also indicated that a finding of intent does not require a written, express relinquishment of citizenship, but could be inferred from conduct that was completely inconsistent with and derogatory to allegiance to the U.S. and could be established by a preponderance of the evidence.
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Congress does not have unlimited authority to prescribe acts as potentially expatriating. Certain actions, formerly included in the list of expatriating acts under the current statute or its precursor, were found unconstitutional for various reasons by the U.S. Supreme Court and subsequently repealed. These include desertion from the armed forces in wartime, draft evasion during wartime or a national emergency, and voting in a foreign election. Additionally, the U.S. Supreme Court has held that the Fifth Amendment bars lawfully naturalized citizens from losing citizenship for acts that do not apply to native-born citizens.

Read in full here (pdf).

Also, former FSO Peter Van Buren has a piece related to this at Firedoglake/The Dissenter:  Can the US Seize Would-Be Jihadis’ Passports? that would go well with the CRS material.

 

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