Facebook underwriters & principals tied to sheltered HSBC cash funding dictators, arms, drugs, securities fraud, bribery and organized crime
(Feb. 17, 2015)—The recently leaked bank account records from the HSBC Swiss private banking whistleblower, Hervé Falciani, reveal that Facebook’s largest shareholders and IPO underwriters are prime movers in a “murky” world of money laundering. According to the leak, this laundering involves drug and arms trafficking, securities fraud, bribery, organized crime and government corruption. Full ICIJ Story (PDF version).
The HSBC leaks show that “IDG Technology Venture Investment III, L.P.” (“IDG”) incorporated in Delaware, USA on Mar. 2, 2005—two months before IDG founder, James W. Breyer, managing partner of Accel Partners, LLP, and an IDG founder with his elusive Chinese venture capital father, John P. Breyer, founder of Computerworld, invested $13 million in Facebook on May 26, 2005. The junior Breyer is now Facebook’s largest inside investor. See AFI Findings of Fact and Timeline (PDF).
A week later, on Jun. 1, 2005, Russian Juri Milner started Digital Sky Technologies (DST) aka Mail.ru funded by oligarch Alisher Usmanov—now called “Russia’s richest man.” Milner and Facebook chief operating officer, Sheryl K. Sandberg, were staffers to Harvard’s Lawrence H. Summers, Obama’s 2008 bank bailout director, when Summers was the World Bank’s chief economist in 1992. The threesome, recommended the disastrous Russian voucher system that helped create the current system of corrupt oligarchs like Usmanov. Milner (directly and through DST and Mail.ru) is now Facebook’s largest outside investor.
The HSBC leaks provided a break in our investigation when they revealed that IDG formed “WininChina, Inc.” in the Cayman Islands on Dec. 12, 2006. HSBC and SEC records identify three Breyer associates running IDG: Patrick J. McGovern, Hugo Shong and Xin Xu. WininChina was formed just a month after the U.S. Patent Office awarded the patent for social networking, U.S. Pat. No. 7,139,761, to Columbus, Ohio innovator Leader Technologies.
China's version of Facebook-Google, Baidu, was funded by the same Facebook "murky" offshore mobsters
Baidu (ADR), China’s version of Facebook and Google combined, was started the same month as Facebook and the first annual EclipseCON in Feb. 2004 by a young Robin Yangong Li who holds his stock in the British Virgin Islands under the company name “Handsome Reward.” He owns 32% of the company. Baidu’s chief intellectual property counsel is Parker Zhang, who went from being an associate at Fenwick & West LLP to that position almost overnight. Baidu’s two largest shareholders are also Facebook’s T. Rowe Price (6.9%) and Baillie Gifford (7.5%) (Vanguard’s “adviser”). See previous post on Baidu.
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