By Pam Martens and Russ Martens: February 18, 2015
Hillary Clinton, who has yet to be named the Democratic candidate for President in 2016, finds herself enmeshed in a transatlantic scandal that is an untimely reminder of the scandal fatigue that Americans were forced to endure during the Presidency of her husband, Bill Clinton.
Last Monday, the Guardian newspaper, the BBC, the French newspaper, Le Monde and dozens of other news outlets disclosed that the Swiss banking unit of the global behemoth bank, HSBC, had assisted the ultra rich in hiding assets and providing advice on how to evade domestic tax authorities.
The documentation for the revelations was provided by a former HSBC employee, Hervé Falciani, to the International Consortium of Investigative Journalists.
That news broke on Monday, February 9. The Clinton bombshell came the next day, Tuesday, February 10, when the Guardian reported that seven clients of the Swiss HSBC bank had cumulatively donated $81 million to the Bill, Hillary and Chelsea Clinton Foundation – a nonprofit that runs the Clinton Global Initiative, the Clinton Presidential Library and numerous other programs.
The Guardian report was quick to point out that there was no evidence that any of the seven donors had evaded taxes and that it “is not unlawful for US or other non-Swiss citizens to hold accounts in Geneva.”
Two of the donors listed in the leaked files are raising eyebrows. According to the Guardian report, one of the donors who had a Swiss HSBC account is Jeffrey Epstein, “the wealthy financier who was jailed for 13 months in 2008 for soliciting sex with underage girls.” Another, reports the Guardian, was Denise Rich, the ex-wife of the now deceased Marc Rich, who fled the U.S. after being indicted for tax evasion, fraud and racketeering and then received a highly controversial pardon by President Clinton just hours before he left office.
On the heels of the Guardian’s report last week comes news in the Wall Street Journal this morning that the Clinton Foundation is also accepting donations from foreign governments. One of those countries is Saudi Arabia, the country that has played an outsized role in collapsing the price of oil and putting many U.S. shale producers in financial jeopardy. According to the Journal, Saudi Arabia had donated between $10 and $25 million since 1999 to the Clinton Foundation with a portion of that coming in 2014. The Foundation’s database lists only a dollar range for donations.
Other recent foreign government donors include the United Arab Emirates, Oman, Australia, Germany and the Foreign Affairs, Trade and Development agency of Canada, a government agency promoting the Keystone XL pipeline, according to the Journal report. The paper notes that the Clinton Foundation had stopped raising money from foreign governments in 2009 while Hillary Clinton served as Secretary of State.
Adding further political intrigue, the New York Times is out with a report this morning indicating that the Geneva prosecutor’s office has released a statement acknowledging that it has opened a criminal inquiry into potential aggravated money laundering at the HSBC Swiss banking unit and is engaged in a search of its offices today.