Thirty-year tax cheat and former head of the Chicago Board of Trade, Patrick Arbor (2:49 on the video).
“My word is my bond,” says former Chicago Board of Trade President Patrick Arbor.
We will get back to Patrick Arbor and his words in just a few minutes.
But first a quick mention of Archer Daniel Midlands, the industrial food giant that is trying to heist millions of dollars in tax breaks from Illinois taxpayers by threatening to move out of state from their Decatur headquarters. This is a bold move on the best of days, since ADM doesn’t pay any taxes now. But they want to pocket, seriously, the payroll deduction that their employees would ordinarily pay to the state in income taxes.
“Why not,” asks ADM? “Illinois has done it for other giant corporations for years.”
And ADM has a point.
“We certainly are aware of the incentives that have been offered to other companies. We’ve done our research,” said ADM spokeswoman Victoria Podesta. “I think it creates precedent. I think precedent is important.”
Tate & Lyle moved its headquarters to Hoffman Estates after receiving a deal for $15 million in incentives. The Sears deal included about $100 million for that company and the corporation that runs the Chicago Mercantile Exchange and the Chicago Board of Trade after it, too, threatened to leave Illinois.
Ah, yes. the Chicago Board of Trade.
And its former president, Patrick Arbor.
Pat is involved in a nasty divorce case. As a result of court testimony, Arbor has admitted to being a monster tax cheat for over 30 years.
His Board of Trade cheated legally.
But not its president, Patrick Arbor.
Arbor has fled the country and is living in Italy. He is threatened with arrest if he steps foot in the U.S. again.
The Sun-Times’ Mark Brown:
A Cook County judge issued a new bench warrant on Tuesday for Arbor, 76, a pal of many politicians including former Mayor Richard M. Daley, as well as a business and civic fixture still listed as a trustee at Loyola University.
Crain’s Shia Kapos:
In the court papers, Mr. Arbor disclosed that he has $13 million in a structured account that’s held in a foundation in Lichtenstein but with assets in the Bank of Frey & Co. in Switzerland. (The two countries border each other.)
He also says, in the document, that a safe he had in his Water Tower Place home had $400,000 in gold, worth about $1,700 a piece, as well as $80,000 in Euros and $90,000 in U.S. dollars. He accuses his ex-wife of taking the contents of the safe.
Ms. Vigilante testified that “the marriage was dependent on him giving me access to his e-mails and phones because I suffered from a significant amount of infidelity with him.”
During testimony, Mr. Arbor acknowledges using his grandparents’ last name of Mazzoni on his Swiss accounts. Her lawyers questioned him about his intent to buy a home outside of the U.S., and he acknowledged looking at properties all over the world, including Italy, Moldova, Kiev, Switzerland, the Ukraine and Panama. He denied he intended to buy.
Mr. Arbor says when he worked at London Investment Trusts earlier in his career, he put $8.5 million in a London bank.
Asked by his lawyer whether he reported that to the federal or state government for income tax purposes, Mr. Arbor said, “I did not, sir, because, as you know, major corporations in the United States like Apple and Google do not report on monies made offshore.”
Mr. Arbor details having to spend extraordinary amounts of money on jewelry for his ex-wife. “She was obsessed,” he said during testimony.
He didn’t reveal to her that he had any offshore accounts until he agreed to pay 17,000 euros ($23,000) for a necklace in 2009. They saw it while at a jewelry store in Capri.
Illinois may be broke. But one percent of its people sure aren’t.