Articles
The American Con Man Who Pioneered Offshore Finance
2024, The Atlantic
How a now-obscure financier turned the Bahamas into a tax haven—and created a cornerstone of global plutocracy.
Keywords: Bahamas, offshore finance, colonialism, Wallace Groves
Complex Systems of Secrecy: The Offshore Networks of Oligarchs
2023, PNAS Nexus, DOI: 2 (3): pgad051; with Herbert Chang, Feng Fu & Daniel Rockmore.
Following the invasion of Ukraine, the US, UK, and EU governments–among others–sanctioned oligarchs close to Putin. This approach has come under scrutiny, as evidence has emerged of the oligarchs’ successful evasion of these punishments. To address this problem, we analyze the role of an overlooked but highly influential group: the secretive professional intermediaries who create and administer the oligarchs’ offshore financial empires. Drawing on the Offshore Leaks Database provided by the International Consortium of Investigative Journalists (ICIJ), we examine the ties linking offshore expert advisors (lawyers, accountants, and other wealth management professionals) to ultra-high-net-worth individuals from four countries: Russia, China, the United States, and Hong Kong. We find that resulting nation-level “oligarch networks” share a scale-free structure characterized by a heterogeneity of heavy-tailed degree distributions of wealth managers; however, network topologies diverge across clients from democratic versus autocratic regimes. While generally robust, scale-free networks are fragile when targeted by attacks on highly-connected nodes. Our “knock-out” experiments pinpoint this vulnerability to the small group of wealth managers themselves, suggesting that sanctioning these professional intermediaries may be more effective and efficient in disrupting dark finance flows than sanctions on their wealthy clients. This vulnerability is especially pronounced amongst Russian oligarchs, who concentrate their offshore business in a handful of boutique wealth management firms. The distinctive patterns we identify suggest a new approach to sanctions, focused on expert intermediaries to disrupt the finances and alliances of their wealthy clients. More generally, our research contributes to the larger body of work on complexity science and the structures of secrecy.
Professions and Inequality: Challenges, Controversies, and Opportunities
2022, Journal of Professions and Organization, DOI: 10 (1), 80-98; with Louise Ashley, Mehdi Boussebaa, Sam Friedman, Stefan Heusinkveld, Stefanie Gustafsson & Daniel Muzio.
On the basis of the EGOS 2021 sub-plenary on ‘Professions and Inequality: Challenges, Controversies, and Opportunities’, the
presenters and panelists wrote four short essays on the relationship between inequality as a grand challenge and professional occupations and organizations, their structures, practices, and strategies. Individually, these essays take an inquisitorial stance
on extant understandings of (1) how professions may exacerbate existing inequalities and (2) how professions can be part of the solution and help tackle inequality as a grand challenge. Taken together, the discussion forum aims at advancing scholarly debates on inequality by showing how professions’ scholarship may critically interrogate extant understandings of inequality as a broad, multifaceted concept, whilst providing fruitful directions for research on inequality, their potential solutions, and the role and responsibilities of organization and management scholars.
The Secret World of Offshore Banking Is Proving It Can Stand Up to Kleptocrats
2022, Washington Post
Russia’s 2022 invasion of Ukraine produced an unexpected side effect: leading nations in the offshore financial system became willing to do the impossible by tearing down their own wall of secrecy. They can do it again.
Keywords: offshore finance, elites, Russia
Do Experienced Subjects Bias Experimental Results? Evidence from 16 Laboratories in Six Countries.
2022, Economic and Political Studies, DOI: 11 (3): 350 – 364; with Alice Guerra, Sven Steinmo & John D’Attoma.
This paper addresses an area of growing concern for laboratory researchers: are subjects’
behaviours affected by prior experiences in laboratory experiments? We address the
question with a large and highly diverse international dataset, and an operationalization
strategy that allows our findings to cohere with previous work while shedding new light
for future research. The findings presented here are drawn from original data gathered as
part of one of the largest tax compliance experiments ever conducted, involving more than
3,000 participants in six countries, across 16 different laboratories. Our results reveal that
subjects’ behaviour correlates with their past experimental experiences, in a way that could
bias results and compromise a study’s external validity; however, this change in behaviour
due to experience occurs only after subjects have participated in at least two previous
laboratory experiments. Our findings have implications not just for tax compliance
Regional Variation in Tax Compliance and the Role of Culture
2023, Economia Politica, DOI: 40: 139 – 152; with Alice Guerra.
This research note analyzes the role of culture on individuals’ tax compliance by focusing on regional differences within a single country: Italy. Southern Italy has long been a focus of research interest, not only for its high rates of tax evasion, but
for a host of other social and political ills, all usually attributed to regional culture. Our laboratory tax compliance experiment, conducted in provinces of the northern and southern regions, reveals that taxpayers in the north and south generally behaved alike both in terms of average compliance rates and individuals’ sensitivity to changes in tax structures—except for lower responsiveness to greater redistribution of tax revenues among subjects in Salerno than those in Bologna. This suggests
the limited explanatory power of culture in tax compliance in favor of institutional explanations.
When Reputation Matters, Leaks Like the Pandora Papers Can Be Very Effective
2021, New York Times
The Pandora Papers leak of offshore financial data doesn’t just expose the “lifestyles of the rich and famous:” it’s a damning indictment of corruption at the highest levels of government and corporate leadership worldwide. But there is reason for hope in the rise of offshore whistleblowers.
Keywords: Pandora Papers, offshore finance, elites
Offshore Accounts Aren’t for Evading Taxes. They’re for Evading Laws Altogether.
2021, Washington Post
For the wealthiest people in the world, offshore finance provides a way to escape the rule of law—not just taxes, but any laws they find inconvenient. This is why the Pandora Papers includes so many cases of shell companies, trusts and foundations that are not being used for tax avoidance.
Keywords: offshore, Pandora Papers, elites, impunity
Secrecy, Simmel & the New Sociology of Wealth
2021, Sociologica 15 (2): 143 – 152.
What relevance does an early twentieth-century thinker like Simmel have for the contemporary sociology of wealth? This paper suggests that Simmel’s classic work on the secret and secret societies is embedded but largely unacknowledged in twenty-first century wealth research. Thus, the purpose of this discussion is to make these contributions more visible and sketch their implications for new directions in the field.
Why Do People Pay Taxes? Explaining Tax Compliance By Individuals
2021, Pp. 356-374 in Handbook on the Politics of Taxation, Lukas Hakelberg and Laura Seelkopf (Eds.), Edward Elgar; with Alice Guerra.
This chapter reviews the latest findings in experimental research on tax compliance, from 2018 onward. It identifies the main themes and points of agreement in this recent literature, as well as the questions that remain unanswered for future research to address.
Toward A Multilevel Sociology of Fraud
2021, Northwestern University Law Review 118 (1): 139-166; with Camilo Arturo Leslie.
This Essay applies a distinctively sociological multilevel analysis of fraud to provide novel insights and recommendations on an old problem. Rather than treating fraud as a problem of “criminogenic environments” or of individual psychologies and motivations, this multilevel analysis investigates the ways in which individuals (the micro level) interact with organizations (the meso level) and institutional systems (the macro level) to produce fraud. We illustrate these interactions and the insight that an interactive analysis can provide by using ethnographic data from an in-depth case study of the R. Allen Stanford offshore financial fraud. The case, which occurred in the Caribbean island nation of Antigua and Barbuda in the 1990s and early 2000s, is not just the story of a bad actor. It is one that illustrates the ways that regulatory agencies, legislatures, and the offshore system can facilitate—or impede—fraud at various levels of analysis. We conclude with the practical insights that can be derived from this multilevel perspective.
Transnational Professionals
2020, Annual Review of Sociology 46: 399 – 417; with Leonard Seabrooke.
This review answers recent calls to consider the transformative role of transnational professionals in contemporary globalization. It departs from the dominant perspective, which views professions as constrained by states’ geographical boundaries and by organizations such as nationally based professional associations. Transnational professionals have particular characteristics: they combine high-level abstract knowledge, high mobility across national and organizational settings, social and cultural capital, and distributed agency to shape global practices. Over the past two decades, a vibrant research stream has emerged on these professionals and their boundary-crossing work, raising new questions about agency, territoriality, and power.We examine transnational professionals across a range of occupations and sectors, as well as world regions, extracting the implications for sociological theory and methods.We outline a scholarly agenda highlighting the opportunity structures and likely trajectories for those who locate themselves in transnational professional spaces, suggesting how they can be investigated in future research.