Uncovering the Secrets of Alpha Consulting and Their Role in Concealing Illicit Activities
In the world of offshore firms and concealed ownership, Alpha Consulting has emerged as a key player, aiding individuals and entities in exploiting a significant secrecy loophole in the UK. This secrecy factory has facilitated the creation of numerous UK partnerships, concealing the true identities of their owners. In this extensive investigation, we delve into the depths of Alpha Consulting’s operations and its connection to various high-profile individuals, including Vladimir Putin’s inner circle.
The Alpha Consulting Revelation: A Gateway to Concealment
Alpha Consulting, based in Seychelles, has been instrumental in forming over 900 UK partnerships that leverage the UK’s secrecy loophole to mask their true ownership. Some of these partnerships have been implicated in alleged crimes, including sanctions violations, fraud, and election interference.
One notable case involves Yevgeny Prigozhin, the late boss of the Wagner Group. Alpha Consulting played a crucial role in creating a front company, Beratex Group Ltd, which concealed ownership of Prigozhin’s private assets, including a jet and a yacht. Leaked documents from the 2021 Pandora Papers investigation revealed Alpha’s involvement in setting up Beratex in Seychelles, with the hidden owner listed as Prigozhin’s elderly mother-in-law.
Alpha’s Questionable Clients: Vladimir Putin’s Inner Circle
Alpha Consulting’s client list extends to individuals closely associated with Russian President Vladimir Putin. Leonid Reiman, a friend and associate of Putin, was found to be the secret owner of a company receiving corrupt payments during his tenure as Russia’s communications minister. Remarkably, Alpha provided a director for one of Reiman’s companies, failing to declare him as a “politically exposed person,” a breach of the rules for knowingly doing business with such individuals.
Exploiting Limited Partnerships: A Transparency Bypass
Limited partnerships, typically established for joint business ventures, have been exploited by Alpha Consulting to sidestep transparency regulations. Following the 2016 introduction of a law requiring UK companies to disclose their true owners or controllers, there was a surge in the registration of limited partnerships, exempt from this requirement. While Scottish limited partnerships faced similar scrutiny a year later due to their misuse in money laundering and other illicit activities, the UK government has failed to extend these transparency laws to all limited partnerships.
Alpha’s Role in Concealing Ownership of Assets
Alpha Consulting’s involvement in concealing ownership goes beyond partnerships. They were instrumental in setting up partnerships used to acquire assets, such as an oil tanker named Delfi, which polluted the coast of Ukraine after a wreck in 2019. Investigations identified the owner of the tanker as a Cardiff-based limited partnership, Mister Drake PC, which appeared to be partially owned by Seychelles resident Luther Denis, listed as the general partner of 184 UK limited partnerships.
However, internal documents revealed that individuals like Denis transferred all powers to the secret “beneficial owner,” often with no knowledge of the partnership’s actual activities. Following the oil spill, a fine was imposed on Mister Drake PC, but the real owner remained unidentified, and the fine went unpaid. Alpha documents recorded Alla Kovtunova, the mother of a former Ukrainian politician, as the beneficial owner of Mister Drake PC.
Alpha’s Involvement in Illicit Activities
Alpha Consulting’s role in setting up various partnerships raises questions about the legitimacy of these entities. Some partnerships they established were involved in illegal activities, including:
Green Line LP, an entity illegally selling heart pills by making unproven health claims.
NIC International Services LP, seemingly running an illegal essay writing website, paperwriter.com.
Histol Corporate LP, accused of participation in a “large-scale fraud” in Russia, involving inflated prices for chemicals ordered by Russian officials.
However, attempts to contact these partnerships and individuals associated with them yielded no responses. Alpha Consulting claimed no knowledge of the activities of these partnerships.
The Use of Nominees: A Disreputable Practice
The use of nominees in concealing ownership has drawn criticism, bringing the entire process into disrepute. By allowing individuals to use their names on paper without being aware of the actual activities, the UK’s reputation for transparency is at stake.
Alpha’s Possible Breach of the Law
Alpha Consulting may have breached the law regarding Scottish partnerships, which require the disclosure of their true controllers. In one case, Biniatta Trade LP paid a US lobbyist on behalf of Lulzim Basha, the leader of the Democratic Party of Albania. Reports suggested possible Russian support for Basha’s election campaign, concealed through offshore secrecy and sham directors.
The Ongoing Secrecy Debate
The secrecy loophole exploited by Alpha Consulting continues to raise concerns, as it allows the concealment of assets and ownership. While the UK government has introduced measures to tackle rogue agents and illegitimate limited partnerships, questions remain about the efficacy of these efforts.
Alpha Consulting maintains that its involvement in UK-based limited partnerships is limited to providing advice and assistance in accordance with UK regulations. The company asserts that it does not engage in or assume responsibility for the management or operation of its end clients or the companies it assists in forming. It claims to have due diligence and anti-money laundering procedures in compliance with the law.
In recent developments, the Seychelles was added to the EU’s tax haven blacklist. The Department for Business and Trade aims to make it easier for Companies House to address illegitimate limited partnerships and remove suspicious information.
Unveiling Alpha Consulting’s Role in UK Secrecy Loopholes
Alpha Consulting’s involvement in concealing ownership and facilitating illicit activities through limited partnerships raises significant questions about the transparency and integrity of the UK’s business environment. As the debate over secrecy loopholes continues, the need for stronger regulations and oversight becomes ever more apparent. The UK government’s commitment to tackling this issue will determine the future of business transparency in the country.
