This week, Dutch newspapers were filled with stories about a rather spectacular settlement in a criminal and civil case between a large, well-known real estate developer and a) the court / government; and b) the Philips Pension Plan. The illustration below - taken from Holland's financial newspaper FD shows how things were structured in this particular network of corrupted real estate transactions. Unfortunately the text is in Dutch, but I am sure all of you understand that the essence is that things are obscured by creating a network of related financial transactions between different legal entities that allegedly had no direct ties with - in the end - the institutional end-investor(s) funding the paycheck.
Example: Network of obscure financial transactions and legal entities
Standard practice in Real Estate operations
This week the developed settled with the court and the victimized pension plan
LMG believes that allowing settlements in this kind of case is wrong