>> We early on found a document
in the leaked records that
showed that there were a number
of trusts established in South
Dakota and, of course, our
question was, who's establishing
trusts in South Dakota?
You know, what...
why would someone from 2,000
miles away turn to Sioux Falls,
South Dakota?
And we just really wanted to
answer that question.
♪ ♪
>> NARRATOR: The reporters found
clients from 41 countries had
set up more than 200 trusts in
South Dakota and other states.
There is no evidence in the
documents that the trusts held
criminal proceeds, which they
are barred from knowingly
accepting.
But nearly 30 of them were
connected to people or companies
accused of fraud, bribery, or
human rights abuses.
>> If you set up a trust in
South Dakota, those records can
be sealed by a court.
So that's an incredibly strong
incentive for someone whose
primary objective is to make
sure that his or her assets are
not discoverable by a reporter
or the tax authority back home.
♪ ♪
>> NARRATOR: This document shows
a South Dakota trust for
Colombian textile magnate Jose
Douer Ambar.
Douer had a well-publicized past
before setting up the trust: he
had forfeited $20 million to the
U.S. government as part of a
settlement of a drug money
laundering case.
He died in 2020.
The documents also show three
trusts in South Dakota created
for Ecuadorian bankers William
and Roberto Isaias.
The brothers had been convicted
in absentia in Ecuador for
embezzling government bailout
money from their failed bank.
The trust owned several shell
companies in the British Virgin
Islands.
One held a family inheritance
valued at $5 to $10 million.
The Isaias conviction was later
overturned amid controversy.
Neither of the brothers
responded to requests for
comment about the trusts.
>> What we found so far is that
roughly 20 high-profile
politicians and industrialists
from countries ranging from
Ecuador to the Dominican
Republic to India, who have
been in trouble in their home
countries for everything from
human rights abuses to banking
fraud, moved their assets and
wealth into the United States,
under the noses of
investigators.
We're talking about people who
have been in all kinds of
trouble, accused of some very
bad things, who are using this
system to hide their wealth, not
only potentially from the
governments, and the taxing
authorities in their home
countries, but also from the
victims in their home countries
who might have a claim to some
of that money.
>> NARRATOR: Two companies are
prominent in the leaked
documents: Trident, which
created Ambar's trust, and the
South Dakota Trust Company,
which was used by the Isaias
brothers.
Neither firm would answer
questions about their clients,
but said in statements they
follow applicable regulations
and perform extensive due
diligence.
>> We realized that over the
years, a whole industry of
banking and trust leaders had
pushed legislation at the state
level to make South Dakota into
this worldwide destination for
foreign wealth.
And they did this by passing a
number of laws that really
appeared incremental at the
time, but they were huge in this
industry.
♪ ♪
>> NARRATOR: The center of this
industry is Sioux Falls.
Over the past decade, the amount
of money in trusts in the state
has more than quadrupled to $360
billion, fueled by dozens of
laws that help protect trusts
from creditors, taxing
authorities, and foreign
governments.
>> I was struck when I came in
from the airport last night that
the whole of skyline of Sioux
Falls, so to speak, is banks and
trusts.
♪ ♪
We'll go give this a shot.
>> NARRATOR: We came here with
Cenziper and Fitzgibbon to meet
a former lawmaker who has raised
concerns about how the state has
made itself such a welcoming
place for the trust industry.
>> Part of what's troubled me
about this trust industry,
frankly, is that they have
basically captured the state
legislature, and can essentially
pass whatever they, they put
together.
I think they are trying to
design a system that works well
and is safe.
However, I also know that there
are people in the world who are
just as smart, and would take
advantage of you if they thought
they could.
And that's my concern, is that
we get ourselves set up where
all of a sudden, you know, we
become like a Switzerland or
like a Panama.
I would be concerned about
reputational damage to this
state.
♪ ♪
>> NARRATOR: The South Dakota
Division of Banking said in a
statement it routinely audits
trust companies, and that the
firms are required to do
intensive vetting, with extra
attention to foreign clients.
But the leaked documents have
heightened concerns about the
secrecy of trusts and the
limitations of existing state
and federal oversight and
regulation.
>> We already found evidence of
people credibly accused of
crimes and other wrongdoing,
you know, breaching the U.S.
financial system.
What about terrorists?
What about drug traffickers?
What about dictators or their
associates?
We just don't know.
Because though we had almost 12
million documents, that's just
this little, tiny glimpse into
this thriving industry in the
United States.