{"id":4599,"date":"2012-03-19T10:02:43","date_gmt":"2012-03-19T15:02:43","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=4599"},"modified":"2012-03-24T08:35:16","modified_gmt":"2012-03-24T13:35:16","slug":"alaska-surgeon-caught-with-illegal-panama-bank-account-forfeites-4-656-million","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/alaska-surgeon-caught-with-illegal-panama-bank-account-forfeites-4-656-million\/","title":{"rendered":"Alaska Surgeon Caught with Illegal Panama Bank Account Forfeites $4.656 Million"},"content":{"rendered":"<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2012\/03\/taxes-owed.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4600\" title=\"taxes owed\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2012\/03\/taxes-owed.jpg\" alt=\"\" width=\"299\" height=\"168\" \/><\/a><\/p>\n<p>Anyone here in Panama who has not been living under a rock has seen the notices of the new enforcement effort that the IRS has implemented here and elsewhere.\u00a0 They have staffed up at the Embassies around the world looking for money.\u00a0 This needs no introduction, well maybe we start with &#8220;Stupid move Doc!&#8221;<\/p>\n<p>Forbes report this last week.<\/p>\n<h3>Brandner: Alaska Plastic Surgeon Faces Forfeiture Of $4.656 Million  For Undisclosed Offshore Account Used To Attempt To Cheat Ex-Wife<\/h3>\n<p><em><strong>U.S. v. $4,656,085.10 in Bank Funds<\/strong><\/em>, Case No. 8:12-cv-00219-DOC-JPR (C.D.Cal., Filed 2\/9\/12). Full Opinion at <a href=\"http:\/\/goo.gl\/7b64A\">http:\/\/goo.gl\/7b64A<\/a><\/p>\n<p>Dr. Michael D. Brandner, M.D., is a surgeon in  Alaska who was involved in divorce proceedings with his former best  friend and beloved, now known as his ex-wife, Sheila Brandner. What we  know about Brandner we know for the recitations in a Complaint filed by  the U.S. government as follows:<\/p>\n<p>In 2008, in the middle of the divorce proceedings,  Brandner made a transcontinental trek completely by car from Alaska to  Panama, with $3.25 million in cashier\u2019s checks. These checks were  deposited by Brandner in a Panamanian Bank called Capital Bank, and  under the account name of \u201cDakota Investment\u201d.<\/p>\n<p>The Complaint doesn\u2019t identify who in Panama helped  Brandner set up the Dakota Investment account, but it does let slip  that such person (who, to spice things up, I will call \u201cMr. X\u201d) later  cooperated with the U.S. government in the separate investigation of a  stock fraud scheme.<\/p>\n<p>Mr. X claimed to have told Brandner that the latter  was required to file a Form called the Report of Foreign Bank and  Financial Accounts \u2014 commonly referred to as the \u201cFBAR\u201d \u2014 with the U.S.  Treasury. Brandner later admitted to Mr. X that he knew about the FBAR  filing requirement, but that he had not done so.<\/p>\n<p>Brandner also had an IRA account with Pensco Trust  Company that held about $1.26 million. Brander instructed Pensco to  transfer these funds to his <a href=\"http:\/\/www.forbes.com\/companies\/bank-of-america\/\">Bank of America<\/a> account in Dana Point, California, and then a couple of days later  transferred the moneys to the Dakota Investment account, plus personally  kicking in a couple of more hundreds of thousands into that Panamanian  account.<\/p>\n<p>Now jump ahead almost exactly three years later, to  2011. Mr. X \u2014 whom Brandner had advised of the divorce decree that  awarded the Pensco moneys to Sheila \u2014 placed a telephone call to  Brandner and they talked about the Panamanian moneys in the Dakota  Investment account. Brandner told Mr. X that \u201c<em><strong>my intention is not to hand it over to the court.<\/strong><\/em>\u201c<\/p>\n<p>In that same call, Brandner and Mr. X came up with a  new scheme, whereby Brandner created a new Panamanian company called  Evergreen Capital LLC, and structured that company so that it was  controlled and appeared to be owned by a foreign nominee of Brandner.  Thus, Brandner could control Evergreen Capital LLC behind the scenes,  and have it open a new bank account with Bank of America in <a href=\"http:\/\/www.forbes.com\/places\/wa\/seattle\/\">Seattle<\/a> to which all the money \u2014 by now $4.656 million \u2014 could be wire-transferred from Panama to the new Bank of America account.<\/p>\n<p>Unbeknownst to Brandner, this telephone was  monitored by the U.S. authorities, presumably because Mr. X had become a  \u201ccooperating witness\u201d with law enforcement by this time.<\/p>\n<p>At any rate, Brandner\u2019s scheme became known to U.S.  Attorney\u2019s office, which then filed a civil Complaint against Brandner  freezing the funds and seeking the forfeiture of all of his funds  because of his failure to report his offshore accounts, file his FBAR,  and then move the unreported moneys through the U.S. financial system by  wire-transfer.<\/p>\n<p>At this point, there is no indication that any  criminal charges are pending or even will be filed by Brandner, but  considering the nature of the U.S. Attorney\u2019s allegations it would not  be a complete surprise if someday that occurred.<\/p>\n<p>Named as an interested person in the Complaint is  the innocent victim Sheila Brandner, who can now presumably assert her  claim against the seized funds, which the U.S. government is unlikely to  contest \u2014 after the payment of taxes, interest, and probably what will  be very substantial fines levied against her ex-husband.<\/p>\n<p>There are quite a few lessons to be had from this  case, but the most important is that it is stupid \u2014 very stupid \u2014 to  engage in conduct that has the effect of turning a purely civil dispute  (here, a divorce) into potential criminal charges.<\/p>\n<p>The events related here are nothing like legitimate asset protection planning, but rather is another \u201c<strong>Dumb Doctor Case<\/strong>\u201d  (the slang acronym is \u201c DDC\u2019) where a physician wrongly concluded that  he could out-smart the system. Probably every real asset protection  planner who reads this Complaint will roll their eyes and count  Brandner\u2019s numerous missteps as he floundered through his scheme.<\/p>\n<p>Attempting to cheat spouses out of their share of  the marital estate is not a proper part of asset protection planning,  either, and is wholly reprehensible conduct. Asset protection against  spouses is cheap and easy and totally legitimate: <strong>It is called a \u201cPre-Nupt\u201d<\/strong>,  short for pre-nuptial agreement or pre-marital agreement. For those who  are already married, most states allow post-marital agreements.  Agreements to divide assets are proper; cheating the other spouse by  hiding assets is not \u2014 that is what sleazy planners do.<\/p>\n<p>Finally, when it comes to offshore planning, we once again see the truism: \u201c<strong>Somebody Knows.<\/strong>\u201d  No matter how rock-solid the laws of some offshore jurisdiction seem to  be, no matter how tight the security at an offshore bank, and no matter  how carefully somebody keeps their paperwork out of the wrong hands, \u201c  Somebody Knows.\u201d Here, that somebody was our still-unknown Mr. X, and  Mr. X was \u201cflipped\u201d by law enforcement to turn over his clients such as  Brandner.<\/p>\n<p>Brandner\u2019s conduct was stupid on many levels, and  we\u2019ll probably see even more evidence of such stupidity as this  litigation progresses. Stay tuned.<\/p>\n<p>Full Opinion at <a href=\"http:\/\/www.assetprotectionbook.com\/casedocs\/brandner\/001_Complaint_09feb12.pdf\">http:\/\/www.assetprotectionbook.com\/casedocs\/brandner\/001_Complaint_09feb12.pdf<\/a><\/p>\n<p><em>See<\/em> Related Article by <a href=\"http:\/\/blogs.forbes.com\/janetnovack\/\">Janet Novack<\/a> at\u00a0<a href=\"http:\/\/www.forbes.com\/sites\/janetnovack\/2012\/03\/16\/hiding-millions-from-your-ex-gets-harder-thanks-to-offshore-tax-crackdown\/\">http:\/\/www.forbes.com\/sites\/janetnovack\/2012\/03\/16\/hiding-millions-from-your-ex-gets-harder-thanks-to-offshore-tax-crackdown\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Anyone here in Panama who has not been living under a rock has seen the notices of the<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4599","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Alaska Surgeon Caught with Illegal Panama Bank Account Forfeites $4.656 Million - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/alaska-surgeon-caught-with-illegal-panama-bank-account-forfeites-4-656-million\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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