Rarely do private companies find themselves punished for using #shell #companies to move capital and avoid taxes.

The fine accountants at Ernst & Young cooked up a complicated scheme in 2008 for a restructuring of #Koch #Industries via shell entities in Luxembourg,
a notorious tax haven, with the reasonable expectation that the ruse would never be revealed.

But then someone leaked a raft of private documents from #Mossack #Fonseca, a law firm in Panama that specializes in the creation of shell companies.

The info dump became known as the #Panama #Papers, and among its many revelations was Koch Industries’ bid to reinvent parts of the company, on paper,
as tax-avoidant Luxembourg shell companies.

According to the Center for Public Integrity, the essence of the Koch Industries deal was to
“reorder the ownership of many subsidiaries and centralize them under Luxembourg companies that are all served by internal corporate finance companies,
akin to a company’s own bank.”

Maybe that’s where the Koch siblings got the idea to get behind #DonorsTrust
—a sort of house bank for the array of political entities and think tanks they fund.

Of course, as with all of the organizations funded by Koch, they’re not in it alone.

#Betsy and #Dick #DeVos helped fund DonorsTrust, according to Mother Jones.

And then there are the many Koch-network “pass-through” groups, such as "Freedom Partners"
and the "Center to Protect Patient Rights",
which function much the way that shell companies do in the world of private capital:
-- they add layers of obfuscation over the provenance of the dollars flowing from one right-wing organization or institution to the next.

For instance, there’s the #Wellspring #Committee,
a pass-through funded in part via the Koch network, whose director, Ann Corkery, also sat for six years on the board of the #Becket #Fund for #Religious #Liberty,
a pro-bono law firm, according to tax filings.

With its portfolio of so-called religious freedom cases,
the Becket Fund gained notice as the firm representing the principals of the #Hobby #Lobby company in
a 2014 Supreme Court challenge to a mandate in the Affordable Care Act
for employer-based health insurance to cover,
without a co-pay, the costs of prescription #contraception.

One type of private company is the “#closely #held” variety, which may occasionally trade stock publicly, but has only a few shareholders.

The Supreme Court’s decision in favor of Hobby Lobby (number 106 on the 2016 Forbes list of the nation’s top private companies) specifically cited its “closely held” status as a qualification for its exemption from the ACA contraceptive mandate.

Through his role in securing the nominations of Clarence #Thomas, John #Roberts, and Samuel #Alito to the Supreme Court,
#Leonard #Leo’s political cachet began to grow.

An avid networker, he cultivated friendships with other members of the court,
spending a weekend in Colorado hunting with Judge Antonin #Scalia
— himself a devout Catholic and, like the Corkerys, close to #Opus #Dei.

Surrounded by such religious zeal, it didn’t take long for their example to reawaken his own Catholic faith, and Leo soon began tapping his network of #darkmoney #backers to support religious causes.

He twice bailed out the #Becket #Fund, a nonprofit named after a twelfth-century English martyr, that officially worked to protect religious freedoms,
especially those that were important to conservative Catholics.

He reveled in his reputation as the financial savior of this important community.

Soon afterwards, President Bush picked Leo as his representative to the "United States Commission on International Religious Freedom,"
a federal agency set up to police religious freedom around the world.

Despite its lofty aims, the commission had a tiny budget and its commissioners were unpaid.

Within Washington circles, many saw it as nothing more than an office for amateurs who meddled in foreign policy.

Undeterred by the skeptics, Leo made the most of his time at the commission to push his own Catholic agenda
— traveling to places like Iraq, Nigeria, Saudi Arabia, South Sudan, and Vietnam to investigate allegations of religious persecution.

His own faith seemed to grow during that time,
with Leo occasionally reprimanding his staff for putting him in a hotel too far from a church,
making it difficult for him to attend Mass.

Some colleagues began to note a particular bias in the way he carried out a role that conflicted with the commission’s stated aim of championing the freedom of all religions.

He became embroiled in a lawsuit after one former colleague accused him of ❌firing her because she was Muslim.

Several staff members resigned because of the controversy,
and Leo was fired not long after.

Despite the scandal, his time at the commission deepened Leo’s faith and helped him cultivate his image as a serious political figure.

By the time of the #Federalist #Society’s twenty-fifth anniversary dinner in November 2007,
his influence was clear.

Leo shared the stage with the president and three sitting Supreme Court Justices
— Antonin Scalia, Clarence Thomas, and Samuel Alito.

Chief Justice John Roberts sent a video message.

“Thanks in part to your efforts, a new generation of lawyers is rising,” President Bush told the assembled members.

At the time of this dinner, Leo was still recovering from the sudden death of his daughter Margaret just a few weeks before her fifteenth birthday
— an event that had a profound impact on him.

Margaret had been born with spina bifida and used a wheelchair.

Events around her death had reinforced Leo’s faith.

The previous summer, during a family vacation, Leo had promised Margaret that he would try to go to Mass more regularly.

Over the years, Margaret had developed an obsession with anything religious, and would nag her parents to take her to Mass.

She especially loved angels
— and priests, insisting on a hug every time she saw one.

The day after they returned from vacation, Leo got up early to go to Mass
— as promised — and looked in on Margaret.

As he was walking down the hall, she started gasping for breath and died shortly afterward.

“I will always think that she did her job,” he later said. “She did her job.”