June 21, 2007: A Canadian offshoot of the Clinton Foundation is formed; it will later be called a “structured money-laundering operation.”

The Clinton Giustra Enterprise Partnership (CGEP) logo. (Credit: CGEP)

The Clinton Giustra Enterprise Partnership (CGEP) logo. (Credit: CGEP)

Canadian mining financier Frank Giustra and former president Bill Clinton launch the Clinton Giustra Enterprise Partnership (CGEP), a Canadian charity that is an offshoot of the Clinton Foundation. The CGEP will become known for many charitable works, including funding relief efforts after a 2010 earthquake in Haiti.

However, investigative journalist Ken Silverstein will allege in a 2015 Harper’s Magazine article that the CGEP is actually a “slush fund” for the Clintons. He will write that CGEP “has been moving significant sums of money into the Clinton Foundation’s flagship in New York. There’s no way for the public to know precisely how much total money the CGEP has taken in over the years—or how much it has forwarded on to the Clinton Foundation—because, unlike in the United States, under Canadian non-profit law charities don’t need to report donors to tax authorities.” Nearly all the donors to the CGEP are unknown. It is also unknown how much CGEP has given the Clinton Foundation, except that it ranks in the top donor class of $25 million or more.

Charles Ortel, an independent financial expert, will say, “There are no effective controls over the Clinton Foundation or the [CGEP]. No independent party has had access to the bank account records, including wire transfer records. There are no independent directors ensuring compliance with the law. Only a fool would have any confidence in their numbers; it’s like Al Capone forming a foundation.”

An unnamed “money-laundering expert and former intelligence officer based in the Middle East who had access to the Foundation’s confidential banking information” will claim that members of royal families in the Middle East and officials in corrupt governments around the world donate money to the CGEP, which is then sent to the Clinton Foundation. For instance, “Equatorial Guinea doesn’t give to the Clinton Foundation in New York because it’s too embarrassing [for the Clintons]. They give the money anonymously in Canada and that buys them political protection in the United States. The Clinton Foundation is a professionally structured money-laundering operation. […] I can’t say for certain that it’s illegal because I don’t have access to all the financial information but at best they are skating along the edge.” The source concludes that if one puts together all the known evidence, “it’s obvious that the Foundation is a fraud.”

The Clinton Foundation will fail to disclose an account linked to the CGEP on eight consecutive tax returns, including the time Hillary Clinton is secretary of state. (Harper’s Magazine, 11/17/2015)

August 2007: A second Canadian offshoot allows big donations to secretly pass to the Clinton Foundation.

Bill Clinton (left) and Frank Giustra (right) in Haiti in 2014. (Credit: Hector Retamal / Agence France Presse)

Bill Clinton (left) and Frank Giustra (right) in Haiti in 2014. (Credit: Hector Retamal / Agence France Presse)

Aides to former President Bill Clinton start a Canadian charity called “the Clinton Giustra Enterprise Partnership (Canada)” or the CGEPC. This is very similar to but separate from another Bill Clinton-related Canadian charity simply named the Clinton Giustra Enterprise Partnership (CGEP) that was formed two months earlier. All the donations from both charities seem to get forwarded to the Clinton Foundation.

The New York Times will later report that the CGEPC “effectively shielded the identities of donors who gave more than $33 million…despite a pledge of transparency when Hillary Rodham Clinton became secretary of state.”

The Clinton Foundation will later claim that the CGEPC, like the CGEP, was created by Canadian mining financier Frank Giustra to allow Canadian donors to get a tax break for supporting the Clinton Foundation’s work. But the New York Times will later report, “However, interviews with tax lawyers and officials in Canada cast doubt on assertions that the partnership was necessary to confer a tax benefit; an examination shows that for many donors it was not needed, and in any event, since 2010, Canadians could have donated to the foundation directly and received the same tax break. Also, it is not at all clear that privacy laws prohibit the partnership from disclosing its donors, the tax lawyers and officials in Canada said.” (The New York Times, 4/29/2015)

November 19, 2014: The Clinton Foundation’s travel expenses almost double from the previous year.

Bill and Chelsea Clinton (left and center) in Johannesburg, South Africa, on August 8, 2013. (Credit: Jemal Countess / Getty Images Europe)

Bill and Chelsea Clinton (left and center) in Johannesburg, South Africa, on August 8, 2013. (Credit: Jemal Countess / Getty Images Europe)

Newly released tax filings indicate that travel expenses for the Clinton Foundation were $8.5 million in 2013, nearly double that of previous years. This is 10% of the foundation’s total expenses. The filing notes, “The Board recognizes that, due to extraordinary security and other requirements, William J. Clinton, Hillary Rodham Clinton, and Chelsea Clinton may require the need to travel by charter or in first class, the determination of which will be made on a case-by-case basis.” All three Clintons had not been members of the board in previous years, due to Hillary being secretary of state. The Clinton Global Initiative (CGI) also was spun off as a separate entity during her tenure, then remerged into the foundation in 2013. However, expenses are not itemized to determine how much travel costs are for each person or program. (Politico, 11/19/2014)

In the previous year’s income tax form, the foundation claimed that it had not provided “first class or charter travel” for any of its employees. (The Clinton Foundation, 9/10/2013)

April 19, 2015: The Clinton Giustra Enterprise Partnership (CGEP), a Canadian affiliate of the Clinton Foundation, has over 1,000 undisclosed donors, and the amount they have given is unknown.

Bill Clinton (left) and Frank Giustra (right) in 2010. (Credit: Shannon Stapleton / Reuters)

Bill Clinton (left) and Frank Giustra (right) in 2010. (Credit: Shannon Stapleton / Reuters)

Bloomberg News calls this news report a “politically explosive revelation…because the Clinton Foundation promised to disclose its donors as a condition of Hillary Clinton becoming secretary of state.” In December 2008, just before Clinton took office, the Clinton Foundation signed a memorandum of understanding with the Obama White House promising to reveal its donors. This agreement explicitly included the CGEP, so this revelation shows the agreement was not upheld.

Canadian mining financier Frank Giustra, who cofounded the CGEP with former President Bill Clinton, says, “We’re not trying to hide anything. […] All of the money that was raised by CGEP flowed through to the Clinton Foundation—every penny—and went to the [charitable] initiatives we identified.”

Giustra and the Clinton Foundation assert that Canadian law prevents them from revealing the CGEP’s donors. However, Bloomberg News reports, “Canadian tax and privacy law experts were dubious of this claim.” Len Farber, former director of tax policy at Canada’s Department of Finance, says, “There’s nothing that would preclude them from releasing the names of donors. It’s entirely up to them.” (Bloomberg News, 4/19/2015)

In November 2015, a Harper’s Magazine article will claim that the CGEP is actually a “slush fund” which has allowed politically toxic foreign contributors to anonymously donate money to the Clinton Foundation, with the hopes of influencing Clinton while she was secretary of state. (Harper’s Magazine, 11/17/2015)