Documents show families operate 69 corporations in two countries

The Gazette May 12, 2011

http://www.montrealgazette.com/news/Companies+connected+money+laundering+scandal/4768405/story.html

How does the extended family behind the Voyageur Foundation - a Costa Rica-based organization that is unable to return $65 million worth of investments to its Canadian members - find the time to run 69 corporations in two Central American countries?

And why are so many of these companies connected to a Panamanian money laundering scandal involving former Nicaraguan president Arnoldo Alemán?

While many of the close to 1,000 Canadian Voyageur members are teetering on the brink of financial ruin, the people behind the "investment club" have been busy pursuing other business interests.

A Gazette investigation has discovered that the Jarman clan - the family from Port Alberni, B.C., that controls Voyageur - and their Costa Rican in-laws, the White Hernández family - have some strange bedfellows.

Attempts to have the Jarman family explain their backgrounds have been met with resistance, but biographical information online does not explain how these individuals - there are 10 in total - developed the management expertise and formidable logistical skills required to manage 69 corporations and a $65-million "investment foundation."

Voyageur founder Philip Jarman is a retired helicopter pilot; his daughter, Angela Jarman, is a former journalist with an undergraduate education degree and a certificate from a Baptist college, while Philip's Toronto-based son, Jeff Jarman, worked as a helicopter mechanic.

Although Jeff Jarman calls himself a capital markets professional, he is not registered with provincial securities authorities. Philip's wife, Voyageur comptroller Mary Belle Jarman, does not appear to be a certified accountant. Although another son, Peter Jarman, is president of a Calgary-based investment firm, he is not registered with Alberta securities regulators.

Angela's husband, Christian White Hernández, is a former tour guide with an MBA; his mother, Priscilla White Hernández, works at a local university; his father Charles White Solano worked as a senior manager at a national co-operative organization in Costa Rica, where he and several co-workers were once accused by the government of stealing housing bond money from poor people. (The charges were forgiven after his former boss, powerful politician Rodolfo Navas Alvarado, reached a settlement agreement with the government.)

During a phone interview from Costa Rica, when a reporter asked Christian White Hernández how he managed to run so many firms and whether he had any specialized training, he answered: "That's none of your business."

A reporter was unable to track down background information about the two remaining members of the clan involved in running some of the families' firms, Christian's sister, Carmen Hernández Varela, or his brother, Brian White Hernández.

Yet a search of corporate registry records reveal that these 10 individuals registered 36 firms in Costa Rica and 33 companies - and one foundation - in Panama between 2000 and 2010.

In another phone interview, White Hernández said there were "many reasons" why his family would need so many corporations, but declined to provide further details.

One reason could be that for company owners seeking privacy, Panamanian and Costa Rican laws guarantee secrecy and anonymity. Corporations are not required to disclose the identities of their true owners, file financial statements or hold annual meetings.

Corporations are also fully exempt from taxation on any business activity or transaction carried on outside of the country of incorporation.

A detailed examination of the registry documents shows that 29 of the families' 33 offshore Panamanian corporations are linked to three people behind Nicstate Development - one of several Panamanian firms used by Alemán to launder some of the approximately $100 million he was convicted of embezzling during his term as Nicaraguan president from 1997 to 2002.

Corporate records show that three Panama-based individuals - Francis Perez, Leticia Montoya and Katia Solano - are part of the clandestine team behind Nicstate.

The same trio have been assigned essential duties at 29 of the Jarman and White Hernández families' Panamanian companies.

To form a corporation, Panamanian law requires that two people - known as "subscribers" in that country - must appear before a notary in Panama to officially incorporate the company. Two Panamanian "subscriber" companies that list Perez, Montoya, Solano as officers and directors - Dulcan Inc. and Winsley Inc. - processed the incorporation paperwork for all 29 firms.

That means three people that played an important role at Nicstate, an offshore firm used by Alemán to launder money, have also worked for the Jarman and White Hernandez families.

In January 2009, Nicaraguan President Daniel Ortega - a former political rival - pardoned Alemán as part of what local and regional newspapers allege was a powersharing pact.

Back in Quebec, despite Voyageur's alleged effort to recover the missing $65 million in investors' funds, members have not been able to recover any of their money since the foundation froze their funds in January 2010.

LIST OF COMPANIES

Ten members of the Jarman and White Hernández families are listed as the presidents, treasurers and secretaries of 69 corporations -and one foundation -in Panama and Costa Rica.

Reporters from Costa Rica's La Republica newspaper visited the official address of Voyageur Foundation in San Jose last week but were unable to find any evidence of business activity.

"I have worked here for five years and I have never seen this company," a security worker said.

Reporters were also unable to find physical evidence of an office for Philip Jarman's helicopter firm Corporacion Mosquito MBP S.A.