IRS-led global alliance destroys innocent American banker.

The Saga of Peter Schiff and Euro Pacific Bank

In early 2021, a scandal unfolded in the Bahamas involving Sam Bankman-Fried, who was allegedly involved in a multi-billion dollar scheme. Meanwhile, in Puerto Rico, conservative activist Peter Schiff was running his own bank. Schiff, a prominent economist, advocated for minimal taxes and less regulation. The U.S. government, along with four other countries, launched a massive tax evasion probe against Schiff, but found nothing.

Despite the lack of evidence, authorities leaked the investigation to the media, resulting in negative publicity for Schiff. They used this as a pretext to seize his bank, costing him over $10 million. The IRS even held a press conference in Puerto Rico, falsely implying that Schiff’s bank was involved in tax evasion and money laundering.

However, the truth was that Schiff’s bank, Euro Pacific Bank (EPB), was being closed by a Puerto Rican oversight board due to claims of insolvency. The board argued that the bank might not be able to return customers’ money in the event of a run on accounts. Unlike Bankman-Fried’s bank, EPB catered to ultra-conservative clients who prioritized the safety of their money over earning interest. The bank kept its depositors’ money on hand, making it highly resistant to runs.

Despite acknowledging that EPB had more than enough cash to cover all deposits, Puerto Rico put the bank into receivership and has yet to return the deposits to its customers, amounting to over $65 million.

Schiff, known for his accurate economic predictions, had warned about the dangers of cryptocurrency and had a distrust of government ethics. With each twist in the saga, his concerns seemed more justified.

The IRS and the Joint Chiefs of Global Tax Enforcement

In 2018, Schiff appeared on the Joe Rogan Experience podcast, where he encouraged people to move to Puerto Rico due to its favorable tax laws. This caught the attention of the U.S. government, along with Australia, Britain, Canada, and the Netherlands. They formed the Joint Chiefs of Global Tax Enforcement (J5) to combat tax evasion.

However, instead of focusing on the rampant crypto tax evasion happening at the time, J5 targeted Schiff in 2020. They called it an “unprecedented” global day of action, but it seemed more like a result of a Google search for tax critics. Schiff’s outspoken views on taxes and his media appearances made him a prime target.

While J5 claimed to be closing in on Schiff’s bank, they provided no evidence of wrongdoing. The media, including The New York Times and Australian outlets, ran coordinated stories praising the task force’s efforts, despite the lack of results.

Authorities Couldn’t Differentiate Between Beliefs and Crimes

Authorities seemed unable to distinguish between Schiff’s political beliefs and his willingness to commit crimes. This led to a sprawling criminal probe against him, tarnishing his reputation. The leaked grand jury subpoena, a criminal violation, further fueled the negative publicity.

Despite the lack of evidence, the damage was done. Half of Euro Pacific Bank’s customers fled, and even Schiff’s personal bank account was closed.

The Closure of Euro Pacific Bank

At a press conference in June 2022, the IRS announced the closure of Euro Pacific Bank as part of Operation Atlantis. However, it was revealed that the shutdown had nothing to do with money laundering or tax evasion. The Puerto Rican regulator claimed that the bank was “critically insolvent,” despite evidence showing it had more than enough cash to cover all deposits.

Following the press conference, Schiff filed a defamation suit against 60 Minutes Australia, which he eventually won. The court ruled that Schiff’s political views did not support the assertion that he endorsed illegal tax avoidance.

Despite the lack of evidence against Euro Pacific Bank and its customers, the trustee overseeing the bank’s liquidation has repeatedly postponed the return of customers’ money, collecting fees that eat into the bank’s reserves.

The Government’s Revenge

Peter Schiff’s brother, Andrew, believes that tax authorities sought revenge for their father’s tax protest. However, their mishandling of the investigation and reliance on leaked information only served to damage their cause. The government’s ability to destroy individuals without evidence or charges is a concerning abuse of power.

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