The Jubilee Blog

Disaster Food Assistance Funds Distributed in Puerto Rico

Washington DC - The Government of Puerto Rico began distribution of emergency disaster food assistance Monday. In May, Congress approved $600 million for the Puerto Rico Nutrition Assistance Program (NAP) as part of disaster relief measures to benefit Americans recovering from disasters such as wildfires and hurricanes. “The funding helps more than a million vulnerable people in Puerto Rico,” said Jubilee USA Director Eric LeCompte, whose group worked with Congress and the White House on the aid package. “We are excited the money will be distributed after so many people saw these emergency disaster benefits cut.” In March, over a million people in Puerto Rico lost NAP benefits when Congress failed to authorize funding. Jubilee USA generated thousands of phone calls and e-mails to Congress to approve the funding. In May, Congress voted for the funding and in early June President Trump signed the aid package into law. Beyond NAP funding, the plan also included $300 million in housing assistance and expedited nearly $9 billion in other disaster aid already approved for Puerto Rico. “Puerto Rico is wrestling with many challenges and still struggling to recover from the devastating 2017 hurricane season,” noted LeCompte. $45 million of the $600 million nutritional assistance is scheduled to be part of Monday's distribution in Puerto Rico.

Debt Collectors Fined and Ordered to Stop Operations

Washington DC - Two debt collection agencies were ordered to stop operations and fined more than $60 million by the Consumer Financial Protection Bureau (CFPB) and New York's Attorney General. The settlement involves debt companies run by Douglas MacKinnon and Mark Gray. Their companies are accused of using predatory collection tactics that include collecting false debts and impersonating police officers to force collection.

"Abusive debt collection practices need to be stopped,” stated Eric LeCompte who leads the religious debt watchdog group, Jubilee USA Network. “This settlement is a strong warning to debt collectors who engage in predatory activities."

Mackinnon and Gray's Buffalo-based network of debt collectors reportedly increased debt collection amounts, in some cases by as much as 600%.

 

Judge Halts Puerto Rico Bankruptcy for 4 Months

San Juan, Puerto Rico - In a hearing on Wednesday, US District Court Judge Laura Taylor Swain told Puerto Rico's government, creditors and a federal oversight board that for 120 days all debt suits will be on hold and sent to mediation. Puerto Rico is attempting to resolve more than $72 billion in debt.

"The judge's action will likely slowdown decisions on the overall bankruptcy plan that the oversight board wants approved," stated Jubilee USA Director, Eric LeCompte. LeCompte is a United Nations debt expert who testified to Congress and the oversight board on Puerto Rico's bankruptcy. "While the debt needs to be cut as soon as possible, the current chaos in Puerto Rico and the serious concerns about corruption make it difficult to make prudent bankruptcy decisions at this time."

Hundreds of thousands of people in Puerto Rico are protesting because of Governor Rosselló's offensive language in leaked communications and recent FBI arrests of former members of his administration on corruption charges.

Poor Countries Lose Billions from Tax Avoidance, Reveal "Mauritius Leaks"

Washington DC - The International Consortium of Investigative Journalists (ICIJ) released evidence that laws in the country of Mauritius help corporations avoid taxes globally, including on the continent of Africa.

"The Mauritius story is another window into how poor countries are losing billions of dollars a year because of a complex, yet legal web of tax treaties and shell corporations," stated Eric LeCompte, a United Nations finance expert and head of the religious development group Jubilee USA Network. "Developing countries are losing vital monies to fight poverty and build infrastructure because of this behavior that avoids paying taxes."

At the heart of the ICIJ investigation is the law firm of Conyers Dill and Pearman with offices in Bermuda, Hong Kong, the Cayman Islands and Mauritius. More than 200,000 leaked Conyers Dill and Pearman legal documents were anonymously sent to the investigative journalists and detailed how corporations use Mauritius to avoid paying taxes. Previously, similar investigations dubbed the "Panama Papers" and the "Paradise Papers" were performed by the ICIJ exposing similar tax avoidance and evasion processes.

"While much of this behavior is legal, it is still immoral," noted LeCompte. "For poor countries to be able to meet the Sustainable Development Goals, we need to eliminate this type of tax avoidance revenue loss."

Poor Countries Lose Billions from Tax Avoidance, Reveal "Mauritius Leaks"

Washington DC - The International Consortium of Investigative Journalists (ICIJ) released evidence that laws in the country of Mauritius help corporations avoid taxes globally, including on the continent of Africa.

"The Mauritius story is another window into how poor countries are losing billions of dollars a year because of a complex, yet legal web of tax treaties and shell corporations," stated Eric LeCompte, a United Nations finance expert and head of the religious development group Jubilee USA Network. "Developing countries are losing vital monies to fight poverty and build infrastructure because of this behavior that avoids paying taxes."

At the heart of the ICIJ investigation is the law firm of Conyers Dill and Pearman with offices in Bermuda, Hong Kong, the Cayman Islands and Mauritius. More than 200,000 leaked Conyers Dill and Pearman legal documents were anonymously sent to the investigative journalists and detailed how corporations use Mauritius to avoid paying taxes. Previously, similar investigations dubbed the "Panama Papers" and the "Paradise Papers" were performed by the ICIJ exposing similar tax avoidance and evasion processes.

"While much of this behavior is legal, it is still immoral," noted LeCompte. "For poor countries to be able to meet the Sustainable Development Goals, we need to eliminate this type of tax avoidance revenue loss."

Credit Suisse Banker Pleads Guilty in Mozambique Loan Scandal

Washington DC - On Friday, former Credit Suisse banker Andrew Pearse pled guilty in US Federal Court for accepting millions of dollars in a fraud scheme that led to a $2 billion Mozambique loan scandal and debt crisis in the East African country. Pearse and six others are accused of taking $200 million in the scheme.

“Mozambique, one of the poorest countries in the world, is dealing with a financial crisis because of the greed of corrupt bankers," said United Nations corruption and finance expert Eric LeCompte and Executive Director of the religious development group Jubilee USA Network. “This behavior is only possible because of a lack of global loan transparency and a lack of public budget transparency in Mozambique.” 

US prosecutors argue that Credit Suisse and Russian-based VTB finance group hid secret loans to the Mozambique government by bribing bank and government officials. The loans were supposed to support the tuna fishing industry, but instead supported the outfitting of boats for military attack crafts. When the secret loans to Mozambique were revealed in 2016, the IMF and World Bank cut ties with the country, halting development funding. This year, Mozambique was hit with two cyclones further impacting the debt ridden and poverty stricken country.

"Mozambique is struggling to recover from a debt crisis and terrible natural disasters," noted LeCompte.

Ballooning Student Debt Debated by Presidential Hopefuls

Republicans and Democrats Propose Student Loan Relief Solutions

Washington DC - American student loan debt topped $1.6 trillion dollars this year, surpassing credit card and auto loan debt combined. More than 45 million people hold student debt, owing an average of $35,000. 20% of current borrowers are behind in student loan payments and the Brookings Institution released data that 40% of student borrowers will default by 2023.

Presidential candidates, Senators Bernie Sanders (I-VT) and Elizabeth Warren (D-MA) proposed student debt relief plans. The Sanders plan seeks to eliminate all student debt while the Warren plan offers substantial relief on a sliding income scale.

“Student debt is a cause of inequality and a challenge for our economic growth,” stated Eric LeCompte, Executive Director of the religious debt watchdog group Jubilee USA Network. “Americans need student loan relief and we also need solutions for the root causes of high student debt. We need to reign in for-profit colleges and schools that have low retention rates. Student borrowers should be able to access bankruptcy protection and we need to address the high costs of university education.”

The Trump Administration suggests there should be caps on student lending that, the White House argues, would drive the cost of college tuition down and ensure responsible lending and borrowing. In the last Congress, Representative Virginia Foxx (R-NC) sponsored the Prosper Act to stop student loans from accruing interest while students are still taking classes. Foxx's legislation would also eliminate or lower other types of federal aid or student loan relief.

"When students graduate with high debts, they don't buy homes and invest in our economy. Student debt is affecting our entire economy and we can not afford to leave this problem unaddressed," noted LeCompte.

The Trump Administration suggests there should be caps on student lending that, the White House argues, would drive the cost of college tuition down and ensure responsible lending and borrowing. In the last Congress, Representative Virginia Foxx (R-NC) sponsored the Prosper Act to stop student loans from accruing interest while students are still taking classes. Foxx's legislation would also eliminate or lower other types of federal aid or student loan relief.

"When students graduate with high debts, they don't buy homes and invest in our economy. Student debt is affecting our entire economy and we can not afford to leave this problem unaddressed," noted LeCompte. 

Senate Bill Tackles Tax Evasion, Secrecy and Money Laundering

July 3, 2019

Washington DC - Last Wednesday, Senators Ron Wyden (D-OR), Marco Rubio (R-FL) and Sheldon Whitehouse (D-RI) introduced the Corporate Transparency Act of 2019, which would reveal the secret owners of shell corporations to law enforcement.

"This legislation is critical to stop crime, tax evasion and corruption," stated United Nations finance expert and Jubilee USA Executive Director, Eric LeCompte. "Shell companies facilitate human trafficking, tax evasion and the stealing of relief monies in the developing world."

In mid-June the House of Representatives voted in the House Financial Services Committee to release the House Bill for a vote this year. The House legislation is sponsored by Representative Carolyn Maloney (D-NY), Representative Peter King (R-NY) and Representative Tom Malinowski (D-NJ).  

IMF's Lagarde Nominated to Head European Central Bank

July 2, 2019

Washington DC - The head of the International Monetary Fund, Christine Lagarde, was nominated Tuesday to lead the European Central Bank.

Eric LeCompte the Executive Director of the religious development group Jubilee USA, releases the following statement:

"Lagarde brings a lot to the helm of the European Central Bank. She understands the concerns of potential financial crisis and the need for keeping women at the center of decision-making.

"Her legal background is important as our global economy needs more than economic forecasts and now requires legal solutions to ensure financial stability.

"During her time at the IMF, Lagarde dealt with the Greek crisis and came to understand that austerity is a deterrent for economic growth. This lesson is important as economic policies need to support growth and sustain employment across Europe."