Har Carmel Alleged Fraud by Ronald Rutman
Here is one of the alleged frauds by Ronald Rutman for saving capital gain tax over 5 Million USD
( Har Carmel Trust – Har Carmel Ltd. )
- Har Carmel Trust (“HCT”) was created in January or early February 2000 by Ronald Rutman / Seymour Braun and back dated to June 15th 1999
- The purpose for the back dating was, to avoid paying Capital Gain tax on 1,395.000 PARADIGN ( PARV) shares that were purchased in 1998 for US $ 0.25 went down to approx US $ 0.02 in April 1999 to and up to Over $ US $ 3.00 in early 2000, this created a capital gain of over US $ 5,000.000.00 in 2000
- The scheme that Rutman came up was simple
- back date the inception of the trust to April 1999 when the shares were valued at $ 0.02 each
- back date the transfer of the shares to the trust where the value was $ 0.02 a share , so there is no capital gain on the transfer
- the owner of the trust should be a foreigner, ( Zahava Klein)
- making it look like ,the trust sold the shares , and not report any capital gain
- Zahava Klein Grantor of HAR CARMEL TRUST (“HCT“ ) had no involvement and no idea about the creation or the transaction of the trust , she was a old lady residing in Haifa Israel, she provided her Passport based on a false promise that a family member wants to put her in their will..
- By back dating the trust they also back dated a illusionary transaction that Ms. Klein bought all the rights for the 1,395.000 Paradign (PRAV) shares for $ 15,000.00 and put all the shares in the HAR CARMEL TRUST ( “ HCT” ) Klein Never participated in any payments nor transactions
- Consequently Ronald Rutman /Seymour Klein sold all Paradigm (PRAV) Shares at US $ 3.90 to US $ 4.10 per share , the shares were sold by Freidberg and Company in Toronto, under Seymour Braun in Trust account
- In April17, 2000 a new entity was created in the Marshal Islands under the name HAR CARMEL LTD. ( HCL”) all funds were moved to the new entity and from the date onward all trades at Friedberg and Company where under the new entity Har Carmel Ltd.
- To avoid paying foreign withholding tax , on their T3 taxation year 2003 they entered residency as ONTARIO when in fact it was a Marshal Island trust
- No taxes were paid or filed in any jurisdiction for any profit of Har Carmel Trust or Har Carmel Limited