Castle Bank & Trust (Bahamas)
Encyclopedia
Castle Bank & Trust was a notorious Bahamian
bank that was involved in tax evasion, as well as covertly funneling funds for the Central Intelligence Agency
. The bank was founded in the 1960s by Paul Helliwell, a former member of the Office of Strategic Services
, and Burton Kanter, a tax lawyer.
The bank was used by the CIA to funnel money for covert military operations, including those at Andros Island (Bahamas), a staging area for anti-Castro activities.
The bank had a number of clients, including celebrities, organized crime figures and wealthy business owners. Some of the most notable included John Fogerty
and other member of Creedence Clearwater Revival
, who lost most of their wealth when the bank collapsed, Tony Curtis
, Hugh Hefner
, Penthouse (magazine)
, the daughter of Chiang Kai-shek
, and members of the Pritzker family (owners of the Hyatt
hotel chain). Reputed organized crime members that were customers included Moe Dalitz
, Morris Kleinman, and Samuel A. Tucker.
In the early 1970s, the U.S. Internal Revenue Service
started an investigation into the tax avoidance schemes used by the bank. The investigation was called Operation Tradewinds. The IRS were able to secretly photograph a list of the bank's clients, while a bank executive was dining in Miami with an IRS informant. As a result of this information, the IRS planned to initiate a new investigation, called Project Haven, into the tax affairs of the people on the client list. A prosecution of one of those clients eventually reached the United States Supreme Court as United States v. Payner
.
However, the investigation was later dropped because of pressure from the CIA (according to the Wall Street Journal). The bank collapsed in 1977. The CIA then used Nugan Hand Bank
for funding some of their covert activities, as they had done with Castle Bank & Trust.
Burton Kanter was tried, but acquitted in 1977 in a case involving tax evasion on the sale of a Reno, Nevada
hotel using an account at Castle Bank & Trust. However, his law partner, Roger Baskes, was convicted in the case.
The Bahamas
The Bahamas , officially the Commonwealth of the Bahamas, is a nation consisting of 29 islands, 661 cays, and 2,387 islets . It is located in the Atlantic Ocean north of Cuba and Hispaniola , northwest of the Turks and Caicos Islands, and southeast of the United States...
bank that was involved in tax evasion, as well as covertly funneling funds for the Central Intelligence Agency
Central Intelligence Agency
The Central Intelligence Agency is a civilian intelligence agency of the United States government. It is an executive agency and reports directly to the Director of National Intelligence, responsible for providing national security intelligence assessment to senior United States policymakers...
. The bank was founded in the 1960s by Paul Helliwell, a former member of the Office of Strategic Services
Office of Strategic Services
The Office of Strategic Services was a United States intelligence agency formed during World War II. It was the wartime intelligence agency, and it was a predecessor of the Central Intelligence Agency...
, and Burton Kanter, a tax lawyer.
The bank was used by the CIA to funnel money for covert military operations, including those at Andros Island (Bahamas), a staging area for anti-Castro activities.
The bank had a number of clients, including celebrities, organized crime figures and wealthy business owners. Some of the most notable included John Fogerty
John Fogerty
John Cameron Fogerty is an American rock singer, songwriter, and guitarist, best known for his time with the swamp rock/roots rock band Creedence Clearwater Revival and as a #1 solo recording artist. Fogerty has a rare distinction of being named on Rolling Stone magazine's list of 100 Greatest...
and other member of Creedence Clearwater Revival
Creedence Clearwater Revival
Creedence Clearwater Revival was an American rock band that gained popularity in the late 1960s and early 1970s with a number of successful singles drawn from various albums....
, who lost most of their wealth when the bank collapsed, Tony Curtis
Tony Curtis
Tony Curtis was an American film actor whose career spanned six decades, but had his greatest popularity during the 1950s and early 1960s. He acted in over 100 films in roles covering a wide range of genres, from light comedy to serious drama...
, Hugh Hefner
Hugh Hefner
Hugh Marston "Hef" Hefner is an American magazine publisher, founder and Chief Creative Officer of Playboy Enterprises.-Early life:...
, Penthouse (magazine)
Penthouse (magazine)
Penthouse, a men's magazine founded by Bob Guccione, combines urban lifestyle articles and softcore pornographic pictorials that, in the 1990s, evolved into hardcore. Penthouse is owned by FriendFinder Network. formerly known as General Media, Inc. whose parent company was Penthouse International...
, the daughter of Chiang Kai-shek
Chiang Kai-shek
Chiang Kai-shek was a political and military leader of 20th century China. He is known as Jiǎng Jièshí or Jiǎng Zhōngzhèng in Mandarin....
, and members of the Pritzker family (owners of the Hyatt
Hyatt
Hyatt Hotels Corporation , is an international operator of hotels.Hyatt Center is the headquarters for Hyatt corporation...
hotel chain). Reputed organized crime members that were customers included Moe Dalitz
Moe Dalitz
Morris Barney "Moe" Dalitz was a Jewish American bootlegger, racketeer, casino owner and philanthropist who was one of the major figures who helped shape Las Vegas, Nevada in the 20th century. He was often referred to as Mr...
, Morris Kleinman, and Samuel A. Tucker.
In the early 1970s, the U.S. Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
started an investigation into the tax avoidance schemes used by the bank. The investigation was called Operation Tradewinds. The IRS were able to secretly photograph a list of the bank's clients, while a bank executive was dining in Miami with an IRS informant. As a result of this information, the IRS planned to initiate a new investigation, called Project Haven, into the tax affairs of the people on the client list. A prosecution of one of those clients eventually reached the United States Supreme Court as United States v. Payner
United States v. Payner
United States v. Payner, , is a decision of the United States Supreme Court reversing a district's court's suppression of evidence in the criminal prosecution of an Ohio businessman charged with tax evasion. The case concerned both issues of criminal procedure and the application of the...
.
However, the investigation was later dropped because of pressure from the CIA (according to the Wall Street Journal). The bank collapsed in 1977. The CIA then used Nugan Hand Bank
Nugan Hand Bank
Nugan Hand Bank was an Australian merchant bank thatcollapsed in 1980 in sensational circumstances amidst rumours of involvement by the Central Intelligence Agency and organized crime.-Founding:...
for funding some of their covert activities, as they had done with Castle Bank & Trust.
Burton Kanter was tried, but acquitted in 1977 in a case involving tax evasion on the sale of a Reno, Nevada
Reno, Nevada
Reno is the county seat of Washoe County, Nevada, United States. The city has a population of about 220,500 and is the most populous Nevada city outside of the Las Vegas metropolitan area...
hotel using an account at Castle Bank & Trust. However, his law partner, Roger Baskes, was convicted in the case.