Digital Brand Media and Marketing Group Inc (DBMM)

[MU_Redskin1]

SEC COMPLAINT: JOHN HURRY CAYMAN ISLAND TAX FRAUD!

https://www.sec.gov/litigation/opinions/2021/34-93052.pdf

2. Cayman Securities Clearing and Trading
FINRA’s allegations in this case concern five deposits of securities at Scottsdale made through a foreign broker-dealer, Cayman Securities Clearing and Trading, Ltd. (“Cayman Securities”). Hurry formed Cayman Securities in early 2013. According to Hurry, he did so primarily for tax-related reasons. Hurry testified that Scottsdale’s clearing broker, Alpine Securities Corporation (“Alpine”), which Hurry also indirectly owned, sought to avoid certain tax withholding obligations for sales by foreign persons. Alpine decided, therefore, to limit its business dealings to foreign financial institutions that were qualified intermediaries and had thus agreed to take on these tax withholding obligations. Hurry established Cayman Securities to be the conduit through which Scottsdale (and subsequently Alpine) would receive securities deposits from foreign persons. After Hurry formed Cayman Securities, it went through the process of becoming a qualified intermediary with the IRS, which included retaining KPMG to assist with the mandatory qualified intermediary audit process. Hurry testified that another reason he created Cayman Securities was that its location in the Cayman Islands allowed the income generated by the firm to be tax deferred until it was repatriated into the United States.
In late 2013, Hurry hired Greg Ruzicka, an attorney who had done legal work for Hurry but who had no securities industry experience, to run Cayman Securities’ day-to-day operations. In early 2014, Hurry hired an experienced reviewer from Scottsdale, Craig D’Mura, to help Ruzicka review deposits at Cayman Securities. D’Mura resigned after only six weeks on the job, but he was at Cayman Securities at the time most of the deposits at issue were made.

This guy John Hurry is a real piece of work! I wonder if he and the Kramers used to hang out and break bread!!!

GLTA DBMM 2.0!

Cheers, Red