The Most Important Whistleblower of Our Era That You’ve Never Heard Of
Closing down corporate use of offshore tax havens would raise more than $1 trillion in revenue over ten years”.-Senate Joint Committee on Taxation, 2021.
This is the third chapter in a section on a draft book on the unrecognized causes of the ever increasing economic inequality. The section begins here with an explanation of how easy tax evasion is:
Dr. May Edwards, PhD., was a senior FinCEN (Financial Crimes Enforcement Network) employee who leaked the documents which forced politicians to pass legislation ending the secret ownership of shell corporations used in money laundering (more on that story here). Because she exposed how both the FinCEN bureau and the banks turned a blind eye to extensive money laundering, the Washington Post hailed “She is one of the most important whistleblowers of our era, and yet hardly anyone remembers her name.” 1. Her tale, clearly demonstrating government inaction while possessing strong evidence of probable money laundering, is an unfortunate warning for any civil servant contemplating similar action in the future.
Edwards was charged with two counts of conspiracy to make unauthorized disclosure of SARs (suspicious activity reports), relating to Paul Manafort (former Trump campaign manager); his deputy, Richard Gates; the Russian agent Maria Butina; and the Russian Embassy in Washington…a long-suspected Russian money-laundering entity.2
Edwards pleaded guilty to the two counts of conspiracy. The information she released was not government classified information but rather information about banks’ willful blindness, and the secretive activities of the wealthy / well-connected. The sentencing guidelines call for imprisonment of 0 to 6 months. In light of the good that came from her revelations, and the fact she’d received no personal benefit, the judge had the discretion to give her no prison time at all: instead, he gave her the maximum allowable and ensured that she served every minute. Meanwhile…
• Manafort and Gates later pleaded guilty and were sentenced to prison time 3
• Butina was convicted of being an unregistered lobbyist for the Russian government, spent 15 months in prison, and was deported back to Russia. 4
The vindictiveness against Edwards continued after her imprisonment: she, Manafort and Gates were imprisoned at the beginning of Covid, and all 3 asked to be released to home imprisonment because of Covid. Manaford & Gates were instantly granted the indulgence, while the judge denied Edwards the same accommodation and ordered that she stay confined despite the increased (covid) risk to her.
Trump subsequently (Dec 2020) issued Manafort a full pardon 5, as part of which some of his forfeitures were unwound. His large house in Water Mill, New York, his brownstone in Brooklyn, his apartment on the edge of Manhattan’s Chinatown, and assets seized in an account at Federal Savings Bank 6 were all returned to him.
Biden, however, in spite of the overwhelming evidence of wrongdoing, and the resulting legislation passed by Congress, refused to pardon Edwards. 7
Edwards and her husband, as a result of the crippling legal expenses following her arrest, lost their home, car, and health insurance. “The impact from a financial standpoint has been devastating,” her husband Dave Edwards bemoans.
But Edward says she does not regret her actions, believing they will help thwart future criminals and terrorists. “I’m absolutely proud of what I did,” she said, “and I know American lives have been saved.” 8
It seems that Whistleblowers will be rewarded if they expose how fraudsters cheat wealthy people such as pursuant to the SEC whistleblower program. However, the US Department of Justice and the courts have given a clear message that if a whistleblower exposes how the wealthy are money laundering, cheating on taxes, or how the government officials are complicit, then the whistleblower will be pursued to the full extent of the law: ruined financially and imprisoned if possible. (This will be a theme continued throughout this series).
Butina was subsequently elected to the Russian Duma.
The good brought about by Edward’s sacrifice has unfortunately been largely undone.
Acknowledgement: With editorial contributions by David Brethaeur
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