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. )

  1. Har Carmel Trust (“HCT”) was created in January or early February 2000 by Ronald Rutman / Seymour Braun and back dated to June 15th 1999
  2. 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
  3. The scheme that Rutman came up was simple
    1. back date the inception of the trust to April 1999 when the shares were valued at $ 0.02 each
    2. 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
    3. the owner of the trust should be a foreigner, ( Zahava Klein)
    4. making it look like ,the trust sold the shares , and not report any capital gain
  4. 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..
  5. 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
  6. 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
  7. 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.
  8. 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
  9. No taxes were paid or filed in any jurisdiction for any profit of Har Carmel Trust or Har Carmel Limited