Protecting You - Complete

Chapter 32 - Ana

"So, you've heard of offshore accounts, right?" I nodded, following that part. "The reason some people have them is to avoid paying tax. But you need more than one. What you do is transfer money from an American bank to the first offshore account. If they want, the IRS can see those outbound transfers as they can call on the records of any bank with a branch in America. Once the money hits the first offshore account, you wire it to another offshore account, often in a second country. Once the money hits that second account, it's essentially untraceable."

"Ok. Elena has two offshore accounts she's used to transfer money to a third?" I checked.

"Exactly. The IRS will already know about accounts one and two. Her American banks will verify the outgoing transfers to two offshore accounts. It's highly unlikely they know about account three. I mean, they'll know there is at least one because that's how these things work, but they won't know the details. Even if they get that information, the two million from that third account has now been transferred across to another account."

"So how does that work? Is it one of yours? Can't they trace it?"

"Yes, and no, they can't. The worst-case scenario is Elena can remember her third account's details and gives the IRS access. All they'll see is a transfer to a fourth untraceable offshore account. A series of numbers with no name attached to it. A transfer made from her laptop—something easily confirmed by her internet data logs. It will look like she's still trying to hide the money."

"Won't that piss the IRS off?" I asked.

"That's the point. When the IRS goes after tax evaders, they're more lenient if they can recover the money. This makes it look like Elena has intentionally hidden the cash from them. Twice. And even if she wanted to help the IRS recover it, she can't. It's gone."

"Do people do that? Hide it?"

"Many do," he confirmed. "White-collar sentences are usually served in the less scary prisons. A five-year prison stay, then disappearing to a non-extradition country, potentially with millions to live off? Some people think it's worth it."

"I can see how that would appeal," I admitted.

"That's why, in situations where they can't recover the money, the IRS is more punitive. Plus, with Elena's local assets seized, her jewelry and other high-cost items lost in the break-in, and her offshore stash of money gone, she won't be able to fund a decent defense. That's if she can find an attorney able to take her on."

"Why would she have trouble finding an attorney?" I was like a babe in the woods with this sort of thing.

"Law firms can't take on clients on opposing sides or part of a case. It wouldn't be ethical. While GEH mostly uses our own legal team, from time to time we outsource for various reasons. Over the last week, my legal team has contacted every firm in Washington, and neighboring states, with experience in tax evasion cases. They're now all under retainer. As a party defrauded by Elena, they can't represent me and her. Without the resources to hire experienced talent from the east coast, she'll have to rely on a second, or third-rate attorney."

I shivered. Christian was playing dirty. "I almost feel sorry for her," I muttered.

"Don't," he replied with a sigh. "She'll get away without prosecution for molesting me and at least two other young men. Increasing the sentence she receives for the tax fraud kind of balances things out."

Hearing that confirmed my resolve. Christian was right. If she would not serve time for seducing and abusing children, the IRS might as well get double their pound of flesh.

"Don't the law firms know you're not actually going to use them?" I asked.

"Of course they do. But with a retainer check and the GEH name, it's not worth potentially pissing me off. They're being paid to stay away from a case they're bound to lose, with the possibility I might use them for something else in the future. For them, it's money for jam."