Everett Stern

Everett Stern
Republican candidate for
United States Senate
Election date
Primary: April 26, 2016
General Election: November 8, 2016
Opponent(s) Pat Toomey (R)
Incumbent Pat Toomey
Personal details
Born New York City, New York
United States
Political party Republican
Residence Philadelphia, Pennsylvania
Alma mater Stetson University (MBA)
Occupation Intelligence Director
Website everettstern.com

Everett Stern is an Intelligence Director and Founder of Tactical Rabbit.[1] He was also a 2016 United States Senate candidate, known as the whistleblower in the HSBC money laundering scandal. He uncovered billions of dollars of illegal money laundering transactions which led to an SEC investigation and a $1.92 billion fine against HSBC in 2012.[2]

Early life and education

Stern was born in New York City, the son of a VA physician. He attended Wellington High School. He received a BA from Florida Atlantic University in 2005[3] and an MBA from Stetson University.[4]

HSBC scandal

After graduating from Stetson, Stern took a position as an AML compliance officer for HSBC in their New Castle, Delaware office in October 2010, where he monitored the bank's Middle Eastern transactions. After coming across many suspicious transactions tied to terrorist groups in the Middle East such as Hamas and Hezbollah, he repeatedly alerted his supervisors, who ignored his warnings.[5] Specifically, he uncovered a multinational money-laundering network that generated millions for Hezbollah through the Lebanese brothers Ali, Husayn, and Kassim Tajideen through their Gambia-based company, Tajco Ltd.[6] After several such episodes, Stern made contact with the FBI and CIA, which began to investigate HSBC. He left work at HSBC in November 2011.[2] By the summer of 2012, the inquiry had broadened to the bank’s money laundering operations in the Middle East, Mexico, Iran, Sudan, and North Korea.[7] A July 2012 congressional report found that from 2001 through 2010, HSBC had “exposed the U.S. financial system to a wide array of money laundering, drug trafficking, and terrorist financing risks due to poor anti-money laundering controls.”[8] In December 2012, HSBC came to a settlement with U.S. authorities which required it to pay a record $1.92 billion fine, as well as improve its anti-money laundering controls, in exchange for a deferment of criminal prosecution for five years.[9][10]

In February 2018, Stern was featured as the HSBC whistleblower in the Netflix series Dirty Money.[11]

Post-HSBC career and further allegations

Stern left HSBC in October 2011, and began working at a P.F. Chang’s restaurant as a server[12] before starting private intelligence firm Tactical Rabbit in the following year. In March 2013, Stern and the law firm Berger & Montague submitted evidence collected by Stern to the SEC that HSBC had continued to violate anti-money laundering regulations through October 2011, when Stern’s employment with HSBC ended.[12] In August 2013, Stern joined with an Occupy Wall Street working group called Alternative Banking to further publicize his allegations against HSBC.[13][14] At a protest held on August 29, 2013 in New York City, Stern publicly alleged that HSBC had committed anti-laundering violations through the end of his employment in 2011, and asked that the government re-open the case against HSBC.[12][15][16]

In December 2013, HSBC reached a settlement with the U.S. Treasury’s Office of Foreign Assets Control regarding funds that had been transferred to financiers of the terrorist organization Hezbollah between December 2010 and April 2011. HSBC was required to pay $32,400. The Treasury department stated that this settlement was “unrelated to the bank’s December 2012 agreement.”[17] Stern has continued to speak publicly through the media about his HSBC allegations, especially as they relate to the funding of terrorist groups and activities.[5][15][18]

In June 2014, Stern and his company investigated the potential merger between Sprint and T-Mobile. He suspected the proposed merger would make the market “more cooperative than competitive” and allow prices to be more easily regulated. Because of the potential for antitrust law violations, Tactical Rabbit accurately predicted the merger would not succeed.[19]

In August 2014, Stern announced an investigation of Students for Justice in Palestine, a student organization found in colleges across America. He reported his findings to federal law enforcement after his company's investigation indicated possible Hamas financing.[20]

In September 2014, his company launched an investigation into JPMorgan Chase & Co. Stern and his company reported to regulators that JPMorgan was violating Office of the Comptroller of the Currency (OCC) and Bank Secrecy Act (BSA) regulations.[21]

In March 2015, Tactical Rabbit launched an investigation into LifeLock, Inc. Stern commented that he believed "LifeLock has not simply made false advertising claims, but has criminally ascertained critical and sensitive information of its customers under false pretenses."[22]

In May 2015, Stern announced an investigation into the closing of Sweet Briar College. Stern held a press conference on May 9, 2015 at the College and alleged that the companies' intelligence operation revealed fraud.[23] Stern pleaded for the American public and the FBI to get involved. Stern noted that "Saving Sweet Briar is not a Virginia problem, but it is a national problem requiring all Americans to act." In May 2015 Stern issued a public letter to FBI Director James Comey asking for an FBI investigation into his company's findings on the closing of the College.[24][25][26]

In February 2018, Everett Stern sent a complaint to Sheriff Ric Bradshaw[27] regarding Palm Beach County Sheriff's Office deputy Jason Van Dusen for allegedly posting racist and offensive content on his social media accounts dating back to 2013.[28] Sheriff recommended that Van Dusen to be fired according to Teri Barbera, sheriff’s spokeswoman.[29]

Political career

In the fall of 2013, Stern worked with Maxine Waters, D-CA, ranking Democrat on the House Financial Services Committee, on the “Holding Individuals Accountable and Deterring Money Laundering Act,” which sought to give the Financial Crimes Enforcement Network the authority to litigate on its own, and to stiffen penalties and prison sentences for bank executives involved in money laundering.[30][31][32]

In February 2014, Stern, a Republican, announced he was running for Pennsylvania's 13th congressional district in the 2014 elections.[33][34] He withdrew from the race before the April 2014 filing deadline.[35] In April 2015, Stern announced his candidacy for United States Senate as the Republican candidate from Pennsylvania, challenging incumbent Pat Toomey for the seat in the 2016 election.[36]

References

  1. ↑ "Signs a Burglar Is Watching Your House | Reader's Digest". Reader's Digest. Retrieved 2018-04-18.
  2. 1 2 Taibbi, Matt, "Gangster Bankers: Too Big to Jail", Rolling Stone, February 14, 2013
  3. ↑ Ant, Fire (22 October 2013). "Wellington Whistleblower Busts HSBC for Serving Terrorists, Promotes "Bank War Day"". New Times Broward-Palm Beach.
  4. ↑ Jeff Ostrowski (23 November 2013). "Everett Stern, who grew up in Wellington, says he blew the whistle on HSBC". The Palm Beach Post.
  5. 1 2 Mollenkamp, Carrick; Wolf, Brett (July 13, 2012). "Special Report: HSBC's money-laundering crackdown riddled with lapses". Reuters.
  6. ↑ Reuters, "An African supermarket with a sinister side", Reuters, July 13, 2012
  7. ↑ Silver-Greenberg, Jessica, "Cash Moves by HSBC in Inquiry", New York Times, August 24, 2012
  8. ↑ Homeland Security and Governmental Affairs Permanent Subcommittee on Investigation "HSBC Exposed U.S. Financial System to Money Laundering, Drug, Terrorist Financing Risks", July 16, 2012
  9. ↑ Protess, Ben, and Jessica Silver-Greenberg, "HSBC to Pay $ 1.92 Billion to Settle Charges of Money-Laundering", New York Times, December 10, 2012
  10. ↑ "Everett Stern: HSBC's money laundering case it's not over". antimoneylaundering.us.
  11. ↑ Quinn, Holly (30 January 2018). "Netflix's 'Dirty Money' exposes HSBC's former New Castle office - Technical.ly Delaware". Technical.ly Delaware. Retrieved 9 February 2018.
  12. 1 2 3 Chris Cumming (30 August 2013). "HSBC Whistle-Blower Presses for New Laundering Probe". American Banker.
  13. ↑ "OWS Alternative Banking Targets HSBC Today". Occupy Wall Street. 29 August 2013.
  14. ↑ Jerry Ashton (28 August 2013). "Wall Street's Two Least Favorite Birthdays: OWS and Everett Stern". The Huffington Post.
  15. 1 2 Halasa, Marni (28 October 2013). "Is Anybody Listening? HSBC Continues to Launder Money for Terrorist Groups Says Whistleblower". The Huffington Post. Retrieved 21 October 2014.
  16. ↑ Michael Hearns (29 August 2013). "HSBC still in crosshairs of interest group". Money Laundering.
  17. ↑ "HSBC Gets Small Fine For Terrorist Transactions". The Huffington Post.
  18. ↑ Shevardnadze, Sophie (20 January 2014). "Terrorism funding just one thing big banks are getting away with - whistleblower Everett Stern". RT. Retrieved 16 June 2016.
  19. ↑ "Tactical Rabbit Investigates Possible T-Mobile/Sprint Merger". MarketWatch. 30 June 2014.
  20. ↑ Piccoli, Sean "Intel Expert Stern: US Student Group May Be Funding Hamas", Newsmax, August 12, 2014
  21. ↑ VW Staff, "JPMorgan Chase Bypassing Bank Secrecy Act Regulations?", ValueWalk, September 28, 2014
  22. ↑ "LifeLock Needs a Life Line: According to Tactical Rabbit's LifeLock Intelligence Report". Bloomberg Business. 25 March 2015.
  23. ↑ Hawes Spencer (13 May 2015). "Sweet Briar supporters hear conspiracy talk from whistleblower turned PI". C-Ville.com.
  24. ↑ "Private Firm Investigates Sweet Briar Closure, Alleges Fraud". nbc29.com. 9 May 2015.
  25. ↑ "Sweet Briar College, groups opposing its closing to meet with Virginia's attorney general's office". www.roanoke.com.
  26. ↑ Everett Stern (11 May 2015). "Everett Stern: FBI LETTER: SWEET BRIAR COLLEGE". Influencers Insights.
  27. ↑ Erblat, Austen. "Palm Beach County Sheriff's deputy fired over social media posts". Sun-Sentinel.com. Retrieved 2018-06-27.
  28. ↑ "This South Florida deputy's social media posts were so offensive that he has been fired". miamiherald. Retrieved 2018-06-27.
  29. ↑ "UPDATE: PBSO deputy fired for social media posts". mypalmbeachpost. Retrieved 2018-06-27.
  30. ↑ Brian Bandell (Oct 24, 2013). "Congressional bill could end 'too big to jail' for bankers". South Florida Business Journal.
  31. ↑ Ensign, Rachel Louise and Michael R. Crittenden, bank-executives/ "New Anti-Money Laundering Bill Targets Bank Executives", Wall Street Journal", October 23, 2013
  32. ↑ Brittany Foster (March 7, 2014). "PA-13: Three Republicans Fight For Seat". Politics PA.
  33. ↑ Chris Cumming (20 February 2014). "HSBC Whistle-Blower Launches Congressional Run". American Banker.
  34. ↑ "HSBC Whistle-Blower to run for Congress". Hang The Bankers. 21 February 2014.
  35. ↑ "Everett Stern". ballotpedia.org.
  36. ↑ "Everett A. Stern, Tactical Rabbit Intelligence Director, Announces His Candidacy for United States Senate". Forward Geek. 13 April 2015.
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