The middle of the 90s of the last century was marked by the receipt by many specialists in the tax planning of advertising faxes that offered to register an offshore bank at an inexpensive rate. The country of registration was the incomprehensible state Dominion Melchizedek. Despite the fact that offshore gravitate toward exotic places, no one could find such a state in atlases.
Contacting the sender by fax, it was possible to find out that this is a church-state education limited by international recognition, which is why it is not on maps. Dominion is also located on a number of Pacific islands, there are their own authorities and there it is possible to register banks without taxes. The mysterious country and its services are represented by a certain London company. Many thought about such a proposal …
The founding father of the mysterious state is David Pedley, a businessman and religious figure from California. It was there, on the basis of their own interpretations of the Bible and the separation of King Melchizedek from it, that the con man came to the idea of creating a righteous kingdom.
It is rumored that a tiny island in the Pacific was even purchased for this, which was so small that it was completely hidden during the tides under the water. Pedley’s activities were always a close object of the authorities’ attention, by 1975 he had already been repeatedly tried, and in 1983 he was also convicted of offshore fraud along with his son and imprisoned.
The swindler died in 1987, working in confinement over the Bible of Melchizedek. True, many are convinced that Pedley Sr. merely mocked his demise, continuing his work under a different surname. His son changed his name to Brench Vindresser and continued his father’s business.
The Dominion website was created, the government headed by Brenč himself, as well as the constitution, legislation and other state attributes. In 1994, the president appeared, with whom Pedley’s wife became, and he himself became vice-president.
For a small fee anyone could become a citizen of this country, paying more, it was possible to become even an ambassador or consul, it was also possible to save a university diploma, other certificates. However, this treasury was the opportunity to register legal entities inherent in any sovereign state. Own company could be bought for a thousand dollars, and own bank – for five thousand.
Despite the fact that Mark attached to the documents a letter informing him of the removal of his responsibility in the event of his country’s non-recognition, serious demand arose for the state’s services, including intermediaries who realized that a virtual country can earn good money. To give itself solidity, the Dominion began territorial expansion, which manifested itself in declaring its rights to some foreign islands and lands.
The country began to conduct a violent foreign policy activity – ministers and consuls were appointed, correspondence was conducted with the UN. The Dominion was even recognized by the Central African Republic, and the embassy’s phone was in Washington’s telephone directory, however, there was an answering machine at the other end anyway. It even declared the spiritual war of France for nuclear tests and Serbia for the war in Kosovo.
The activities of Pedley and other “official” persons of the Dominion immediately fell under the consideration of the special services, as several banks registered in the mysterious offshore began to operate on the territory of the United States. Banks accepted deposits, in exchange for bank papers and valuable bonds of Melchizedek itself. Such financial instruments of the virtual state were issued for hundreds of millions of dollars, they changed for real securities, with their help loans were issued, which was the aim of scammers.
The financial well-being of such companies was confirmed by the conclusion of the Melchizedek auditors. Soon the insurance companies registered in the Dominion appeared in the USA.Special services quickly took the trail Pedley, but to prove his direct fault could not, because he said that the banks and firms of the Dominion are independent legal entities.
Soon the scam started branches all over the world, in 1995 the Crown Prince Melchizedek tried in Hong Kong to transfer the checks of Melkizedek banks to half a million in cash. His lordship was an unemployed Austrian baker who, through his diplomatic passport, Dominion managed to travel half of Asia.
In 1998, people were arrested in the Philippines who traded in Dominion passports, among the deceived were hundreds of Asian citizens who acquired fictitious documents for $ 3,500. In the same place, public positions were also sold for much larger amounts. The total amount collected was one million dollars.
Melchizedek passports looked so natural that at one time Malaysia and Singapore even semi-officially allowed entry on them. However, Pedley himself from the activities of his “subordinates” resolutely dissociated himself, promising to sort things out and fire the guilty. Meanwhile, the checks of the Melchizedek banks began to emerge around the world, appearing in Africa, Latin America, Australia.
The sale of offshore Cholhisek banks was conducted not only in London, but also in Russia. Their advertising was conducted in the press, a posh office was filmed. In the 1990s, several fraudulent banks were closed with a resounding name (Swiss Investment Bank, Eurobank of Zurich, etc.) registered in Melchizedek. The losses were estimated at hundreds of thousands.
The “authorities” of Melchizedek again promised to sort everything out and even shut down one of the banks, which was already under suspicion of the authorities. Personally, however, nobody could convict Pedley of fraud, especially as this could be regarded as religious persecution.
Recently, the activity of such banks has subsided, Pedley himself has changed his name to Tsemakh Ben David Netzer Corem, his whereabouts are unknown. The Dominion website received an Israeli branch, however, in Russian. The events of September 11, 2001 significantly tightened the policy of countries against offshore banks, it is now forbidden to open correspondent accounts for banks without offices and personnel. Thus, the dummy banks of virtual states were repulsed.