Wednesday, November 30, 2016

Web of Wealth

Nicolas Confessore, writing in the New York Times Magazine, gets a glimpse into the intricate web designed to hide the wealth of the super-rich, via a divorce where the husband is trying to hide all his money from his wife. Mostly, though, these webs hide money from tax collectors.

A few weeks after she realized her husband was finally leaving her, Sarah Pursglove flew down to the Bahamas to figure out how much money he really had. Like many women married to very wealthy men, she didn’t know much about the family accounts. Her husband, a Finnish entrepreneur named Robert Oesterlund, had sworn to a Canadian court that his immediately calculable “net family property” totaled just a few million dollars. Pursglove was skeptical. She could come up with several family purchases worth more than that off the top of her head. There was the 165-foot yacht, Déjà Vu — that cost a few million dollars a year just to keep on the water. There was the $30 million penthouse at the Toronto Four Seasons, which was still being renovated. It wasn’t their only home. The Déjà Vu wasn’t even their only yacht.

It's a zillion dollar racket, much of it centered in island nations whose main line of work is protecting ill-gotten gains.