Ah, so that’s why UBS had us study how to prevent money laundering

UBS Admits To Massive Tax Evasion Scheme

Banking giant UBS has agreed to pay $780 million and turn over once-secret Swiss banking records to settle allegations it conspired to defraud the U.S. government of taxes owed by big clients.

. . .  UBS executives helped U.S. taxpayers open new accounts in the names of sham entities.

Prosecutors contend that UBS executives used encrypted software and other counter-surveillance techniques to prevent anyone from detecting that they were actively marketing such Swiss bank secrecy — and tax evasion — to American taxpayers.

The clients, in turn, filed false tax returns that omitted the income they earned in their Swiss accounts, according to the court papers.

Federal officials said they had pulled aside a veil of secrecy that hid a corrupt international banking practice.

“This was not a mere compliance oversight, but rather a knowing crime motivated by greed and disrespect for the law,” said Alexander Acosta, U.S. attorney for southern Florida.

http://www.dollarsandsense.org/blog/2009/02/ubs-admits-to-massive-tax-evasion.html

In 2006 and 2007 UBS was having everyone brush up on their “‘know your customer’ (KYC) skills and the identification of new trends in suspicious behavior” — even operations staff (on the computer side in my case).  We had to “undertake regular training courses, [. . .] in the form of on-line training” or compliance modules as they were called.  These had absolutely zero to do with our jobs, we never dealt with clients, let alone their money, so we used to call in banker friends to help us with the online tests.  (Above quotes from “Contributing to society, Preventing money laundering, corruption and terrorist financing,” http://www.ubs.com/1/e/about/corporate_responsibility/society/fighting_money_laundering.html.  OOPSIE, that page has been deleted!  OK, here’s another one:  http://www.ubs.com/1/e/polandcareers/ourcultureandvalues/corporate_responsibility/society/fighting_money_laundering.html.  Note that this page is under the heading, Our Culture and Values — one trait of the truly advanced, truly high ranking sociopathic mind is the depth and breadth of its hypocrisy.  Criticizing a sociopath for being hypocritical is like criticizing a fish for swimming — it’s simply their nature.)

It’s apparent now what the strategy was — window dressing.  UBS was putting on a big show of complying with anti-money laundering laws by having all firm personnel be trained in recognizing it — all the while carrying out that very thing through encrypted software and other counter-surveillance techniques (according to the U.S. DOJ).

Now what kind of mind would think a transparent ruse like this would accomplish anything?  Perhaps an arrogant, childish sociopathic mind.  Obviously not every crook is a sociopath.  However, in my opinion, sociopathy is the wind in the sails of evil and corruption.  The normally corrupt are forever fighting their consciences, following the conscienceless, the sociopaths, is a relief to them.

Unfortunately it seems UBS is still the same bank that accepted holocaust gold and sought to deprive the heirs of concentration camp victims their rightful funds.  As late as 1997 bank management thought they could order underlings to destroy Nazi-era banking records.  Fortunately, Christopher Meili, a security guard, turned them in.  (For more information:  “‘Nazi gold’ settlement mixed intangibles with money,” http://www.cnn.com/SPECIALS/views/y/1998/08/hirsch.nazigold.aug21/; Swiss Banks and World War II, http://en.wikipedia.org/wiki/Banking_in_Switzerland.)

Suggesting to a sociopathic banker that accepting gold collected from the teeth of concentration camp victims was wrong or the same to an athlete gaining the top of the podium through fraud would only convince the sociopath that the questioner was the one with the problem.  Their code:  you call it cheating, I call it winning.   If the point was to amass gold, the source, to a sociopath, would be utterly of no concern.

Bernie Madoff, probable sociopath, following in the footsteps of Charles Ponzi, definite sociopath

Ah, the fruits of an economy that gives corporations sociopathic freedoms. The economy is such a perfect match to sociopathic skills that it is hard to believe it wasn’t designed by sociopaths.  If a corporate liars culture is allowed to develop, sociopaths will take it to the limit and beyond. Sociopaths are incapable of self regulation, they need adult supervision (literally, due to their existing in an arrested development state — morally,  judgementwise, personality, sexually, etc.).

Bernard Madoff

Bernard Madoff

Charles Ponzi

Charles Ponzi

Quoting Mike Lupica’s NY Daily News column, Unbridled greed chips away at last remnants of the American Dream, http://www.nydailynews.com/money/2008/12/14/2008-12-14_unbridled_greed_chips_away_at_last_remna.html:

There is an old line from Fay Vincent, the baseball commissioner who suspended George Steinbrenner for conspiring with a known gambler, Howie Spira. Steinbrenner paid Spira to get some dirt on Dave Winfield, for whom Steinbrenner had no use, and Vincent caught him doing that and kicked him out of the game.

Vincent said at the time that Steinbrenner had heard no moral alarm because “none sounded.”

There was no moral alarm for Bernie Madoff as he systematically ruined fortunes and pension funds, and ultimately lives, and didn’t get stopped until now. He is the biggest thief we know about, but only for now, because he is caught. You wonder how many more like him end up in orange jumpsuits before this is over.

I love that phrase, “no moral alarm sounded” — never does for sociopaths, must be quite an advantage over us.

Attorney Mark Mulholland (representing Madoff investors), http://www.nydailynews.com/money/2008/12/14/2008-12-14_new_jersey_couple_joins_heartbreak_list_.html:

“He had this polished, magnetic approach that made folks want to invest their money with him. Everyone wanted in. From time to time, he would also reject potential investors. That just made other folks even more keen on getting into the Madoff fund.”

What a con! Folksy, magnetic. Laid a trail of candy for his marks to follow.

I have often heard it remarked that these conmen are soft sell artists.  I believe that is only superficially true.  I think that they are actually using all their abilities and concentration.  One way of looking at it is that they are running quintuple time mentally, so much so that they appear relaxed and nonchalant on the surface.  I once knew a sociopathic Don Juan who was so talented that his targets thought they seduced him, but really he was that far ahead of them (all the while adjusting his personality to his reading of the mark’s ideal and again laying a trail of bread crumbs/candy).

Top rank sociopaths are so good at what they do that their manipulations approach the realm of “weaving reality.” I would predict that Madoff approached this level.  When I was in management at E.F. Hutton I hired a couple of sociopaths.  One had eyes that were just pools of trustworthiness – it was almost impossible not to trust him.  In turned out that he was a fraud, he couldn’t do half the things he had said he could do.  Obviously I should have tested him more.  The other one also interviewed very well, including great eye contact.  Hutton went out of business soon after, I later heard that he had been fired as a psychopath by a law firm.  He was said to be a workplace bully and a puppetmaster manipulator whose specialty was turning people against each other and getting individuals fired.

Charles Ponzi was so smooth that many victims begged the government to set him free to continue his magic. Apparently, sociopaths gain this persuasiveness and manipulative ability due to a different brain structure.

Habitual Liar Brains Look Different On Scans

Adrian Raine and Yaling Yang have found that habitual liars have more white matter and less gray matter in their brains as compared to less lie-prone people. [ emphasis in original]

http://www.futurepundit.com/archives/003035.html

Finally, I would recommend paying close attention to those regulatory officials who gave Madoff a pass or looked the other way.  Due to both personal experience with corporate human resource departments and outside observations I believe that sociopaths recognize and protect each other, even to the extent that non-criminal sociopaths will often protect criminal sociopaths.

More Madoff:

How could Madoff not have made any trades for 13 years?


More Madoff — for sociopaths there is no such thing as an ingroup

Earlier posts:

Welcome to our sociopaths-gone-wild-economy

Commonalities between Wall Street speculators and/or Fed bankers and sociopaths

Low hanging fruit – the idiots who lead America

Recent stories deserving of a closer look

“Chinese baby milk toll escalates”
BBC

A country whose corporate liars culture is even worse than ours — imagine that. Enforceable contract laws and public health regulations are an absolute necessity. Unrestrained sociopaths in business and commerce leads to disaster.

It seems Britney Spears has overcome likely sociopathic bullying
MTV

Her ex-husband, Kevin Federline, certainly fits the profile of a sociopathic conman who lives off of women (as did Thierry Roussel, Christina Onassis’ fourth husband). After her divorce, Britney was often described as having gone crazy or as having a breakdown. All I saw was someone who was very upset — just what you’d expect from a woman who discovered she’d been lying next to a mimic with only pretend emotions (except for the contempt). Furthermore, she was reported in the press as stating that her husband had slept with her mother. Just what you’d expect him to try if he were a sociopath.

I once had a long discussion with a sociopathic acquaintance about invisible-to-third-parties harassment campaigns. The aim is to make the victim appear crazy to the outside world with the harasser escaping any blame. This is what seemed to be going on here. So-called psychologists and therapists were even jumping in with “borderline” comments, with no or little first hand knowledge.

In no way should Kevin Federline be awarded sole custody of the children. A truly gigantic, but generally unknown problem are sociopathic jurists siding with sociopaths appearing before them. I’m not saying that is the case here — I know nothing about the judge. But at the very least he was initially taken in by KFed’s “innocent me and poor, pathetic Britney” routine.

“Monogamy gene found in people”
New Scientist

Hmm, this could be even more interesting.

“American Psychological Association Members Pass Historic Ban on Psychologist Participation in U.S. Detention Facilities”
Psyche, Science, and Society

Now if they could only get the sociopaths out of the torture supporting APA leadership. Sociopaths frequently go in to psychology fields in an effort to “join art with science.”