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Bruce Rappaport

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Bruce Rappaport
Born
Baruch Rappaport

(1922-02-15)15 February 1922
Haifa, Mandatory Palestine
Died8 January 2010(2010-01-08) (aged 87)
Baruch Rapaport Square near Rambam Hospital, Haifa

Baruch "Bruce" Rappaport (February 15, 1922 – January 8, 2010) was an international banker and financier.[1][2] He was born in Haifa, Mandatory Palestine to Russian-Jewish emigre parents.[3]

Antigua

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Bruce Rappaport was involved in banking, industry, and politics on the island of Antigua.[4][5]

Swiss American Bank

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In April 1983, Rappaport formed Swiss American Bank Ltd., later renamed Global Bank of Commerce, Ltd., and became the first licensed bank in Antigua governed by the International Business Corporations (IBC) Act of 1982.[6]

In the 1990s, United States government authorities accused Swiss American Bank and the Swiss American National Bank, which were both located in Antigua, of money laundering proceeds from illicit drug profits.[7]

The company was later sued by the United States for failure to release forfeited funds from one of its account holders.[8] The lawsuit stemmed from a plea agreement with John E. Fitzgerald, who admitted to laundering $7,000,000 through numerous shell corporations and eventually deposited the funds in Swiss American Bank. Swiss American Bank, instead of returning the money to the United States Government, paid $5 million to the government of Antigua and Barbuda and deposited $880,000 into a bank account held at the Bank of Bermuda.[9] Lester Bird, the former Prime Minister of Antigua, later told the US government, "We can't get you the records, they were destroyed in the hurricane".[10]

On March 1, 2006, the government of Antigua and Barbuda brought legal action against its former prime minister Lester Bird, Bruce Rappaport, and other defendants.[11] The lawsuit contended that Swiss American Bank, Bruce Rappaport, and others misappropriated over $41,000,000.

West Indies Oil Company (WIOC)

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In 1980, a Rappaport controlled company by the name of National Petroleum Ltd purchased 440,000 shares of the West Indies Oil Company (WIOC) for $6,000,000 from the country of Antigua. The deal was negotiated by the former prime minister of Antigua, Lester Bird.[12]

On May 30, 2010, the government of Antigua and Barbuda, using a $68 million loan from the Venezuelan firm, PDVSA, repurchased all of the shares to WOIC from National Petroleum Ltd [12]

Guns for Antigua

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Main article: Guns for Antigua

Bruce Rappaport, Maurice Sarfati, and Yair Klein were involved in the Guns for Antigua scandal which involved the shipment of Israeli-made weapons through Antigua to the Medellin drug cartel in Colombia. The affair was exposed by the Louis Blom-Cooper Royal Commission, following the discovery that several murders in Colombia had been perpetrated with Israeli guns that had been shipped through Antigua and were ostensibly for the Antigua and Barbuda Defence Force, which is equipped for free by the United States.[13]

Rappaport provided the financing, and the land on Antigua, for the melon farm that was used to funnel the weapons from Israel to Colombia via Antigua.[14]

Ambassador to Israel and Russia

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On December 3, 1997, Bruce Rappaport was appointed as Antigua and Barbuda's ambassador to the country of Russia.[15]

Desalinization plant

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In 2006, the Government of Antigua and Barbuda (GOAB), sued many former government officials and Bruce Rappaport. The suit alleged that Bruce Rappaport embezzled $14 million via his role in re-negotiating the desalinization plant.[16] The cable states,

(c) The list of malefactors in the case is a veritable who's who from the Lester Bird government—Bird himself, senior party MP Asot Michael, former Antiguan High Commissioner to the UK Ronald Sanders (diplomat), Finance Minister John St. Luce, Treasury chief Keith Hurst, Public Utilities Minister Robin Yearwood, and Antiguan Ambassador to Russia and Israel Bruce Rappaport, along with some minor officials and ancillary characters. The firm's findings are still preliminary pending interviews with both the original lender (Ishikawajima-Harima Heavy Industries (IHI) Japan) and some of the accused, but the documentary and interview evidence obtained so far—including from a raid on Asot Michael's personal files—appears to be compelling for at least several of the key players.

In February 2009, the Government of Antigua and Barbuda announced a settlement agreement. Bruce Rappaport agreed to repay $12 million of the embezzled funds.[17]

Bank of New York

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In 1982, Rappaport filed the required paperwork to declare his 7.5% ownership of Bank of New York.[18]

On August 19, 1999, the Bank of New York (BoNY) admitted to co-operating with an investigation into a $10 billion money-laundering operation. Bruce Rappaport was a focus of the investigation and also his other bank, Bank of New York-InterMaritime, a Swiss bank that conducted a large amount of Russian business.[19] Allegedly, his Bank of New York-Inter Maritime had money laundered money from Benex which had ties to Semion Mogilevich.[20][21] In addition to Bruce Rappaport, another Bank of New York (BoNY) employee, Natasha Kagalovsky, who is married to Konstantin Kagalovsky, was a focus of investigations.[19]

In 1999, a shareholder lawsuit was filed against the Bank of New York. In the complaint the accusations against Rappaport, and Bank of New York, included money laundering, accusations of Russian organized crime involvement, and described Rappaport as "an international financier of questionable background".[22]

Bank of New York-InterMaritime

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His Bank of New York-InterMaritime and the 1966 founded Inter Maritime Bank -Bank of New York, Geneva were closely involved in the ownership of the Vyborg port and shipyard prior to Ilya Traber (Russian: Илья Трабер) with support from Alexander Dobrovinsky (Russian: Александр Добровинский) gaining ownership of the facilities in 1994.[23][24][25][a]

In 1990, Rappaport met with Mikhail Gorbachev who supported Rappaport's subsequent efforts in the modernization of 30 Soviet shipyards.[25] Rappaport was the only foreign investor in the projects.[25]

Jean Goutchkov, also spelled Ivan Guchkov (Russian: Иван Гучков; born 1954 Paris, France), who is a descendant of Alexander Guchkov, worked at Intermaritime Bank of New York before becoming managing director at Ferrier Lullin which was acquired by the Julius Baer Group in 2005 and then worked at HSBC. Goutchkov primarily serviced wealthy Russian clients.[26][27][28][29][30]

In 1994, the Bank of New York (BoNY) in which Rappaport held its largest stake was assisted by Rappaport's Inter-Maritime Bank (IMB), Geneva through their joint venture the Bank of New York Inter-Maritime to give BoNY's chairman J. Carter Bacot contacts for access to Russia.[7][31]

His Inter Maritime Bank -Bank of New York, Geneva had no branch in Antigua.[7]

Boston attorney William Shaw McDermott represented Rappaport's interests in the United States through the Bank of New York - Inter Maritime Bank.[7]

Bank Menatap and Inkombank

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Both Menatap and Inkombank are believed to have had business relationships with Rappaport.[32][7]

BCCI

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Main article: Bank of Credit and Commerce International

In 1987, Independent Counsel Robert McKay investigated Bruce Rappaport for activities he engaged in on behalf of CIA director William Casey. These activities included the purchasing of an Antiguan melon-farm for Israeli arms dealers who were significant customers of BCCI in Miami and placing Alfred Hartmann (BCCI employee) on the board of directors of Intermaritime Bank of Geneva and New York.[33]

Rappaport was also the person who allegedly controlled bank accounts which received $10 million for the Contras. Swiss authorities told the Iran/Contra Committees that the $10 million had disappeared, and was found to have "mistakenly" gone to a Swiss businessman, who then returned the money after the Iran/Contra affair was discovered. Press accounts contended that the businessman was Rappaport.[34]

Indonesia

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During the early 1970s, General Ibnu Sutowo, signed numerous oil-tanker charter deals with Bruce Rappaport to provide oil transport for Pertamina.[35]

In April 1977, General Ibnu Sutowo was placed under house arrest for his dealings with Rappaport.[36] Rappaport was accused of price gouging and bringing Pertamina, and Indonesia, to bankruptcy.[37]

Iraq–Jordan pipeline scandal

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During the 1980s, James McKay, an independent prosecutor, was appointed to investigate alleged financial improprieties by Edwin Meese while he was attorney general. As part of this investigation, McKay looked into Meese's involvement in a Bechtel pipeline deal in the Middle East.[38] The pipeline was to extend from Iraq to Jordan and was negotiated by Edwin Meese, Shimon Peres, Bruce Rappaport, Robert C. McFarlane, and others.

During the investigation, Bruce Rappaport was offered immunity from prosecution as long as he did not perjure himself. Rapport later refused to attend his deposition for fear "he might not remember everything accurately".[39]

Rappaport's alleged role was to bribe Israeli officials in the Shimon Peres government and ensure that portions of the $1 billion project were funneled to the Israeli Labor Party.[40][41] Later, in 2006, Peres was investigated for an illegal $100,000 campaign contribution from Rappaport.[42][43]

Philanthropy

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Bruce and his wife Ruth Rappaport contributed to the establishment of the Technion's Faculty of Medicine building (est. 1979), named the Rappaport Faculty of Medicine, and founded the Technion's Rappaport Research Institute.[1] Upon his death, Technion released a statement thanking him for his contributions to the university.[44]

In Geneva, Rappaport gave millions of dollars to Jewish and non-Jewish organizations, including orphanages, day care centers, research institutes and hospitals in the United States, Israel and elsewhere. His wife, Ruth Rappaport, was the co-president of the Geneva branch of the Women's International Zionist Organization.[18]

Bruce and Ruth Rappaport also created the Bruce and Ruth Rappaport Foundation in 2006.[45][46]

See also

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Notes

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  1. ^ By 1992, his Bank of New York-InterMaritime had a 28% ownership stake held by the Bank of New York.[7]

References

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  1. ^ a b "rambam mourns baruch rappaport visionary and generous donor". Rambam.org.il. 2010-01-11. Retrieved 2012-09-02.
  2. ^ "Baruch (Bruce) Rappaport 1922-2010 - International Summit on Predictive, Preventive, Participatory and Personalized Health (P4H)". Ppphs.org. 2012-03-15. Archived from the original on 2011-11-19. Retrieved 2012-09-01.
  3. ^ Block, Alan A.; Weaver, Constance A.; Weaver, Constance (2004). All Is Clouded by Desire: Global Banking, Money Laundering, and ... - Alan A. Block, Constance A. Weaver, Constance Weaver - Google Books. ISBN 9780275983307. Retrieved 2012-09-01.
  4. ^ "Rappaport Dies | Antigua Observer Newspaper". Antiguaobserver.com. 2010-01-09. Archived from the original on July 19, 2012. Retrieved 2012-09-01.
  5. ^ Benjamin, Juliet (9 January 2010). "Rappaort Dies". Antigua Observer (www.antiguaobserver.com). Archived from the original on 31 December 2013. Retrieved 3 November 2023.
  6. ^ "The High Commission of Antigua and Barbuda. Tourism, travel, business, politics, finance and investments". Antigua-barbuda.com. Archived from the original on 2013-06-22. Retrieved 2012-09-01.
  7. ^ a b c d e f Russian Money-Laundering Investigation Finds a Familiar Swiss Banker in the Middle
  8. ^ "UNITED STATES v. SWISS AMERICAN BANK LTD, No. 99-1012., September 08, 1999 - US 1st Circuit | FindLaw". Caselaw.findlaw.com. Retrieved 2012-09-01.
  9. ^ ":: CRANe - Caribbean Regional Aviation Network :: Welcome!". Caribbeanavenue.com. Retrieved 2012-09-01.
  10. ^ Opinion Pieces. "Antigua Political Corruption, West Indies Oil and Our Future | CARIBARENA ANTIGUA". Caribarena.com. Retrieved 2012-09-01.
  11. ^ "Archived copy" (PDF). Archived from the original (PDF) on 2006-10-26. Retrieved 2012-09-01.{{cite web}}: CS1 maint: archived copy as title (link)
  12. ^ a b "Govt to Acquire WIOC | CARIBARENA ANTIGUA". Caribarena.com. Archived from the original on 2013-01-19. Retrieved 2012-09-01.
  13. ^ Philips, Dion. "Antigua and Barbuda Defense Force: A Preliminary Look". Retrieved 17 August 2011.
  14. ^ Scott, Peter Dale (2010-11-16). American War Machine: Deep Politics, the CIA Global Drug Connection, and the ... - Peter Dale Scott - Google Boeken. ISBN 9781442205895. Retrieved 2012-09-01.
  15. ^ "Bruce Rappaport appointed Antigua's Ambassador to Russia". Offshorealert.com. 27 February 1998. Retrieved 2012-09-01.
  16. ^ "Missing File" (PDF). .worldbank.org. Retrieved 2013-09-23.
  17. ^ "StAR - Stolen Asset Recovery Initiative - Corruption Cases - Bruce Rappaport, Lester Bryant Bird and Asot Michael". Star.worldbank.org. Archived from the original on 2013-04-11. Retrieved 2012-09-01.
  18. ^ a b Greenhouse, Steven (1988-02-04). "A Secret Emperor of Oil and Shipping - New York Times". The New York Times. Retrieved 2012-09-30.
  19. ^ a b "Crime without punishment". The Economist. 1999-08-28. Archived from the original on 2013-01-22. Retrieved 2012-09-30.
  20. ^ Fernandez, Rodrigo (1999-09-04). "Un banquero suizo, hombre clave en la trama internacional de la corrupción rusa: Bruce Rappaport, embajador de Antigua en Moscú, en el punto de mira de la justicia" [A Swiss banker, key man in the international plot of Russian corruption: Bruce Rappaport, Antigua's ambassador to Moscow, in the spotlight of justice]. El Pais (in Spanish). Retrieved 2020-12-13.
  21. ^ O'Brien, Timothy L.; Bonner, Raymond (1999-08-19). "Activity at Bank Raises Suspicions of Russian Mob Tie". The New York Times. Retrieved 2020-12-13.
  22. ^ "PFP#310745498]" (PDF). Retrieved 2012-09-30.
  23. ^ Трабер и Добровинский
  24. ^ Лже-адвокат Добровинский - координатор российской и международной мафии
  25. ^ a b c Раппапорт
  26. ^ Belton 2020, pp. 324–330, 561–562.
  27. ^ "Иван Гучков: "Россия — одна из таких стран, куда сейчас выгодно инвестировать": Потомок русских финансистов представляет старейший швейцарский банк" [Ivan Guchkov: "Russia is one of those countries where it is now profitable to invest": Descendant of Russian financiers represents the oldest Swiss bank]. banki.ru (in Russian). 30 December 2005. Archived from the original on 29 March 2022. Retrieved 29 March 2022.
  28. ^ Пономарев, Игорь (Ponomarev, Igor) (15 December 2006). "Риск - часть нашей профессии" [Risk is part of our profession]. Национальный Банковский Журнал (nbj.ru) (in Russian). Archived from the original on 30 March 2022. Retrieved 29 March 2022.{{cite news}}: CS1 maint: multiple names: authors list (link)
  29. ^ Пономарев, Игорь (Ponomarev, Igor) (7 June 2006). "В Россию по делу Потомок русских финансистов представляет старейший швейцарский банк: ДОСЬЕ" [The oldest Swiss bank represents the Descendant of Russian financiers in Russia in the case: DOSSIER]. Национальный Банковский Журнал (nbj.ru) (in Russian). Archived from the original on 30 March 2022. Retrieved 29 March 2022.{{cite news}}: CS1 maint: multiple names: authors list (link)
  30. ^ "Иван Гучков" [Ivan Guchkov]. Национальный Банковский Журнал (nbj.ru) (in Russian). 29 March 2022. Archived from the original on 30 March 2022. Retrieved 29 March 2022.
  31. ^ Kochan, Nick (2005). "Chapter 2 BoNYGate". The Washing Machine: How Money Laundering and Terrorist Financing Soils Us. Mason, Ohio: Cengage Learning. ISBN 9781587991592.
  32. ^ ГЛОБАЛИЗАЦИЯ РОССИЙСКОЙ ОРГАНИЗОВАННОЙ ПРЕСТУПНОСТИ
  33. ^ BCCI testimony of Lance, S. Hrg. 102-350, Pt. 3, p. 43-44.
  34. ^ Legal Times, July 31, 1989, "I'm Not Rappaport."
  35. ^ "Pertamina's founder Sutowo dies at 86". The Jakarta Post. 2001-01-13. Archived from the original on 2016-03-05. Retrieved 2012-09-30.
  36. ^ Gerth, Jeff (1988-03-06). "Seeking Testimony in Pipeline Case: Immunity Given to a Secretive Swiss - New York Times". The New York Times. Retrieved 2013-09-23.
  37. ^ Machmud, Tengku Nathan (12 July 2000). The Indonesian Production Sharing Contract: An Investor's Perspective - Tengku Nathan Machmud - Google Books. ISBN 9789041113870. Retrieved 2013-09-23.
  38. ^ Published: February 24, 1988 (1988-02-24). "Meese and the Pipeline: The Story So Far". The New York Times. Retrieved 2012-09-02.{{cite news}}: CS1 maint: numeric names: authors list (link)
  39. ^ "The Nation". Los Angeles Times. 1988-04-01. Retrieved 2012-09-02.
  40. ^ Wines, Michael (1988-02-06). "Saw Nothing Illegal, Swiss Figure in Meese Probe Says : Oilman Rejects Reports on Pipeline Role". Los Angeles Times. Retrieved 2012-09-02.
  41. ^ "Israeli Party Payments Key Focus : Meese's Differing Versions of Pipeline Role Reported". Los Angeles Times. Associated Press. 1988-07-09. Retrieved 2012-09-02.
  42. ^ "Print Article". Jerusalem Post. 2011-12-06. Archived from the original on 2013-09-27. Retrieved 2012-09-30.
  43. ^ "State Comptroller reveals political donor list". Globes. 2006-01-16. Retrieved 2012-09-30.
  44. ^ "TECHNION FOCUS MAGAZINE – In Memoriam – Bruce (Baruch) Rappaport". 2014-09-04. Archived from the original on 2014-09-04. Retrieved 2018-01-08.
  45. ^ Cashman, Greer Fay (February 11, 2018). "Ruth Rappaport, philanthropist, art lover, dead at 94". The Jerusalem Post. Retrieved 24 November 2022.
  46. ^ Gruffy, Sol (March 14, 2017). "From generation to generation - a celebration of 10 years of the Rappaport Prize for Israeli art". TimeOut. Retrieved 24 November 2022.
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