The Seattle Times reports that according to a Senate report, the Quellos Group, a large investment firm based in Seattle, used false securities arrangements with offshore corporations to protect rich clients from taxes by sheltering $2 billion in capital gains. Government investigators believe that these actions may have cost the U.S. Treasury over $300 million USD.
Quellos, established in 1994, is a giant in the hedge funds business. They specialize complex investment tactics such as the “funds of hedge funds” which allowing investors to use a single investment to buy into many hedge funds. Their main clientele includes large corporations and vastly wealthy individuals.