*From the point of view of a full professor
PRIDE
at the College of Business at the University of Southern Mississippi*
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Our core mission reflects taking PRIDE in all we do - Professionalism, Respect, Integrity, Discipline, Excellence
Modern techniques of money laundering began in the 1920s when Americans enacted the Eighteen Amendment to the Constitution that ushered in Prohibition. While Prohibition is acknowledged as a failure resulting in rampant criminal activity, some people saw Prohibition as a great opportunity to get rich or richer -- for example the Bronfman family in Canada.
Exporting alcohol to the U.S. was not illegal in Canada; it was only illegal to import it into the U.S. However, those who paid for imported Canadian booze didn't want to be so blatant as to make their checks out to one of the Bronfman companies. So the Bronfmans opened an account at the Bank of Montreal under the name "J. Norton". Money could be wired to this account from the U.S. U.S. cash or checks could be used to purchase a bank draft made out to the non-existent "J. Norton" at any branch of the Bank of Montreal. These drafts could then be deposited into the bank account of any Bronfman-controlled company. The company treasurer would see the name "J. Norton" and credit the payments to the company's U.S. booze account.
In a previous week, we looked at one way the University of Southern Mississippi “launders money”. Annually, USM pays $1,000,000 plus in state funds into its Foundation, then claims the uses of the money are confidential. By doing so, USM effectively conceals the use of taxpayer funds. Stated a little differently, USM uses its Foundation effectively to launder both money and accountability for that money.
Exporting alcohol to the U.S. was not illegal in Canada; it was only illegal to import it into the U.S. However, those who paid for imported Canadian booze didn't want to be so blatant as to make their checks out to one of the Bronfman companies. So the Bronfmans opened an account at the Bank of Montreal under the name "J. Norton". Money could be wired to this account from the U.S. U.S. cash or checks could be used to purchase a bank draft made out to the non-existent "J. Norton" at any branch of the Bank of Montreal. These drafts could then be deposited into the bank account of any Bronfman-controlled company. The company treasurer would see the name "J. Norton" and credit the payments to the company's U.S. booze account.
In a previous week, we looked at one way the University of Southern Mississippi “launders money”. Annually, USM pays $1,000,000 plus in state funds into its Foundation, then claims the uses of the money are confidential. By doing so, USM effectively conceals the use of taxpayer funds. Stated a little differently, USM uses its Foundation effectively to launder both money and accountability for that money.
D. Harold Doty, Dean, College of Business Administration
Once again, thanks to those who have provided information, documents and thoughts to help build this website.
Chauncey M. DePree, Jr.
Chauncey M. DePree, Jr.
During an unsuccessful job interview, Dr. Doty explained that USM Foundation money was his “fun money”; his “booze account”. Since Dr. Doty is the Dean of the College of Business and holds an advanced degrees in business, I was confident he had a precise meaning for the term. Given the information I had already developed I was not too surprised to discover that historically a “booze account” is a money laundering technique.