Billionaire Haitian Businessmen Used Offshore Companies and Diplomatic Immunity to Evade Taxes and Commit Crimes

Two of Haiti’s wealthiest businessmen, Gilbert Bigio and Sherif Abdallah, have been found to have used offshore companies and diplomatic immunity to evade taxes and commit crimes, according to a new investigation.

Offshore Companies and Hidden Wealth

Bigio, a billionaire with ties to Israel, was connected to at least 12 offshore companies, including two trusts that benefited his family members living in the United States. One of these trusts had a $31 million stake in Haitian companies and owned a $3 million home in Miami-Dade County.

Abdallah, who represented Italy as honorary consul in Haiti, owned at least four companies registered in the Bahamas and established another company in the British Virgin Islands to own a $1 million yacht named Karisa. His private bankers at Santander Bank described him as “a person of the highest character.”

Diplomatic Connections and Immunity

Both Bigio and Abdallah used their diplomatic connections to evade taxes and commit crimes. Bigio was Israel’s honorary consul in Haiti for over 20 years, while Abdallah represented Italy as honorary consul for more than a decade.

The duo also moved together in another close-knit circle: diplomacy. They enjoyed the protections afforded by their diplomatic status, including the ability to shield certain communications and properties from searches by law enforcement officers.

Diplomatic Passports and Travel Benefits

In 2016, Bigio and his wife used diplomatic passports to help set up an offshore company. Honorary consuls do not automatically receive diplomatic passports, but some countries provide them. And diplomatic passports can come with travel benefits, including special treatment by customs officers and police at airports.

Questions Raised about Offshore Companies and Diplomatic Immunity

The investigation has raised questions about the use of offshore companies and diplomatic immunity in Haiti, where tax inspectors, police, and judges often face difficulties obtaining information about the wealthiest citizens.

“It’s a game of hide-and-seek,” said university professor Jean-Vernet. “Many of those who dominate the economy in Haiti are also honorary consuls. Police won’t search their homes or their places of work because they believe them to be protected as part of the honorary consulate. They have diplomatic power.”

Vetting Process for Honorary Consuls Questioned

The investigation has also raised questions about the vetting process for honorary consuls. Bigio’s son, Reuven, replaced his father as honorary consul more than a decade ago.

Foreign Ministry’s Response

The foreign ministry in Italy told ICIJ media partner, L’Espresso, that it promptly learned of the sanctions against its honorary consul and is now seeking an honorary consul in Haiti to replace Abdallah.

Conclusion

This investigation was conducted by a team of journalists from around the world, including those at the International Consortium of Investigative Journalists (ICIJ). The full report can be read on ICIJ’s website.