BBX Director Fraud Example

Magali Russo – Director of Employment 2014 Ltd, in Liquidation. Proved to be concealing assets from the NZ authorities.

In this post I give one simple provable example of fraud conducted by one of the Directors of BBX. The company Employment 2014 Limited was established for tax fraud, one of a string of such entities using property and BBX credit for tax evasion and cash conversion. The fraud is common in the commercial barter sector – founder of BBX Michael Touma showed his daughters how to do it and was banned as a company director in NZ as a result. Magali Russo took over the front-person and should also be banned, if not imprisoned. The real brains though and power behind the scenes is Carolin MacDonald, CEO, BBX International.

Since investigating and exposing BBX International as a fraudulent barter organisation (something that IRTA should really take note of instead of covering it all up), I have received two or three responses and comments along the lines that “what I am doing is despicable [not fair etc]” or that I have an “attitude” – that is though among the hundreds of positive responses.

An “attitude”? You betcha! I have a strong sense of justice and I hate liars and crooks!

Following my recent warning to “Sunny” the new NZ representative that I would charge him with criminal conduct if he sells BBX memberships or aids and abets the use of a devalued currency without full disclosure, I responded to some upset loser posting from Thailand along the lines that cockroaches flee when the light comes on.

Another aspect of evil is the infighting. All evidence I’ve seen points to the fact that upon their father’s incapacitation, Carolin MacDonald first locked out one of her sisters from the action, then used her older sister Magali Russo to cover for their father’s crimes, then when the heat came on her, sidelined her as well.

Employment 2014 Limited – in Liquidation

Employment 2014 Limited is a New Zealand company No 4943359. It was put into Liquidation on 3 June 2015. The Liquidator is Craig Sanson from PWC. I spoke to him and his offsider who was doing the work in Q1 and Q2, 2017 when I was doing The BBX Investigation. They were not aware that the company has hidden assets in BBX.

The latest Liquidator’s report (PDF) shows no recognition of the companies BBX balance (on or around 1 February 2017) in credit to the tune of $89,821.41.

The creditor winding the company up is the IRD, NZ’s Inland Revenue Department is the government tax collector. PWC is an accounting firm that has received $10,000.00 for their liquidation ‘co-incidentally’ covered by a settlement of $10k. Funny that eh? You can imagine the conversation between Carolin MacDonald and PWC:

PWC: We need our fees at least

CM: We’ll settle to get rid of our little “problem”

PWC: $10k

CM: Done deal!

Carolin gets the heat off her older sister’s tax fraud and the “problem” company goes away without anyone knowing. PWC gets enough to cover their fees. V-E-R-Y convenient for everybody eh?

Funny also that PWC twice wasn’t interested in knowing about any hidden assets! If the Liquidator just wants to get his fees and won’t work for the little people of New Zealand, then I will! [UPDATE: PWC now may be onto it. If that is the case then great – watch this space!]

Chasing serial crooks like the BBX Directors could be a fulltime position for 1,000 investigators and prosecutors, so unless PWC pull finger and actually do their job, or the companies office intervenes and slams these shonky directors like they did to their father, they’ll get away with it.

Employment 2014 Ltd’s asset in BBX is currently being hidden from the taxman. Legally it belongs to him though, not Magali Russo nor Carolin MacDonald. Deceiving PWC as Liquidator for some two years is just another crime from the girls in Australia . . . ho hum!

The company was transferred into Carolin MacDonald’s control when things got too hot for them earlier this year. It is/was owned by their Hong Kong shell company. The BBX International thing is a huge rabbit warren of bankrupted companies and shonky operations. This is only one simple, easy-to-track and prove example.

Don’t even go looking at Employment 2012 Limited or you’ll be going down yet another of these crooks’ rabbit holes. Oh and there’s more too . . . a string of them not only in New Zealand but also elsewhere – heaps of BBX associated companies gone belly up in Australia too! Get the picture?

How It Works

When you have control of a currency (which is what the likes of BBX and Bartercard actually are – currencies) you can print money. Both of these companies I have just mentioned, do. The secret is to conceal the associated debt, so that as everybody sells goods and services into the trade exchange, the debits associated with their credits are hidden from the members’ view. Nobody except the exchange owner knows what the real situation is because they hide the figures – deliberately.

That’s what crooks do – they work in the dark.

BBX data however when published shows the extent of the international fraud – in New Zealand the difference between members in credit and those in debt to the system is around $T7m.

What Michael taught was how to defraud using property. They would locate property for sale, inflate the price, take a portion of the deposit using trade dollars (using the credit of the members’ trade monies interest free of course) then sell the property for cash – good cash conversion and profit. There are also leveraging opportunities which the crooks love as well – going to a bank to secure loans etc etc. This will all come out in court as and when the authorities investigate, particularly in Australia and probably in the UK but potentially anywhere that BBX International, Bartercard and/or Wayne Sharpe operates.

The point is that when a company takes GST but doesn’t pay it, the IRD misses out. Magali’s company has done this. Her companies assets still sit on the BBX ledger as revealed in the data dump from Q1, 2017. The Liquidator doesn’t want to know because he won’t get paid for chasing crooks – his job is just to liquidate on behalf of the government agency that registers and deregisters companies . . . everyone goes about their merry business making more money off the backs of the BBX suckers members and the New Zealand taxpayer . . . except for one thing – I am a taxpayer and I really don’t like crooks using commercial barter to personal gain from the little guys.

 

My Advice

IRD/Taxman: You are STILL being defrauded with this company and there’s heaps more tax fraud as well behind these shonky operators.

PWC: You’ve still got work to do.

MBIE Companies Office: Your Liquidator’s report is incomplete and the entire Touma family should be banned directors in New Zealand, like their father Michael was.

BBX: Do something . . . anything, because that will show the forensic accountants that you know and knew and tried to hide the evidence.

Everyone else: Watch this space.

 

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