China’s “Chinagame” is a scam to extract $5.4 billion from US taxpayers through fraud and theft of over $20 billion, according to a new report by the National Treasury Employees Union.
The “Chinsagate” scam has been the subject of several Congressional hearings, but is still ongoing, according a report by The National Treasury Employee Union.
The scam involves the fraudsters taking advantage of a loophole in the tax code known as the “China Foreign Investment Promotion Act.”
This is the law that allows foreign investment to be made in US companies.
It is often used by wealthy Chinese and foreign investors in the US.
The report found that over the past three years, Chinagate has caused $4.6 billion in tax payments to be withheld from the federal government.
In 2017, the Treasury Department also reported that Chinagate “resulted in the suspension of more than $8.5 billion in Treasury payments to foreign investors.”
The investigation was prompted by a whistleblower, who sent the Treasury a copy of a 2015 report detailing the frauds and misdeeds involving the scam.
“If the U.S. Treasury can’t stop this, it has no business telling others to do it,” the whistleblower, Daniel Riedl, told the Times.
Chinagates is still active in China, with over 1,200 employees who have access to the offshore money system.
“We have to protect taxpayers, so we have to go after this,” Rep. Peter Roskam (R-Ill.), the ranking Democrat on the House Ways and Means Committee, said in a statement.
“We’ve seen too many examples where people have stolen from the American people.” Read more