Word: buconero
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...which the company's receivables were packaged as debt instruments and sold to investors - and a retainer to advise Parmalat in the acquisition of Beatrice Foods in Canada, a transaction valued at $310 million. Ferraris also laid the groundwork for a complex financing scheme through a Delaware company called Buconero, the Italian for "black hole," which Citigroup set up for Parmalat in 1999. Buconero loaned a total of $137 million to a Swiss subsidiary of Parmalat that then distributed the money to other Parmalat companies. Buconero received a guaranteed return of almost 6%, plus a total of about $7 million...
Prosecutors allege that Parmalat created an elaborate house of milk cartons, using opaque subsidiaries (including one called Buconero, which means "black hole") in tax havens such as the Cayman Islands and Luxembourg to hide the declining state of its finances. Tanzi has reportedly admitted shifting some $630 million from the company to other businesses but insists some underlings devised the accounting fraud. Former chief financial officer Fausto Tonna has given prosecutors crucial details about the firm's labyrinthine bookkeeping...
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