Four charged with tax evasion.
A federal grand jury has charged a St Louis car dealer, two Texas men and a US Virgin Islands resident with using a US Virgin Islands economic development program to evade US$74 million in taxes, reports Bloomberg (March 28, 2007). The East St Louis, Ill. grand jury indicted INDICTED, practice. When a man is accused by a bill of indictment preferred by a grand jury, he is said to be indicted. James A. Auffenberg Jr. of Swansea, Ill, charging him with illegally sheltering US$300 million through Kapok kapok (kā`pŏk, kăp`ək), name for a tropical tree of the family Bombacaceae (bombax family) and for the fiber (floss) obtained from the seeds in the ripened pods. Management, L.P., a St Croix-based partnership that qualified for tax benefits;
James W. Ferguson III of Amarillo, Tex, Peter G. Fagan of De Leon, Tex, and J. David Jackson of St Croix were also charged. The indictments cap a four-year investigation that began with a federal raid of Kapok and touched off new federal scrutiny of the USVI USVI United States Virgin Islands
USVI US Vision, Inc. (stock symbol)
USVI United States Vegetation Index tax incentives. Approved by the US Congress, the program permits qualified taxpayers to cut their federal bill by 90%. A 2004 federal law placed new restrictions on the tax program and chased off a burgeoning hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" industry attracted by the incentives, the USVI government says;
To qualify for the tax incentives, firms must invest at least US$100,000 in the territory, buy products such as office supplies and computers in the USVI, contribute to area charities and hire at least 10 people, 80% of whom must be natives of the islands. Company owners must live in the territory for at least half of the year. The indictment claims Auffenberg, a St Louis-area car dealer, and other partners never actually became bona fide [Latin, In good faith.] Honest; genuine; actual; authentic; acting without the intention of defrauding.
A bona fide purchaser is one who purchases property for a valuable consideration that is inducement for entering into a contract and without suspicion of being residents and used the St Croix-based Kapok to launder Launder
To move illegally acquired cash through financial systems so that it appears to be legally acquired. funds they earned in the US.