IRS Accused of Orchestrating Bank Shutdown for PR

Summary

Newly obtained IRS documents suggest the agency may have orchestrated the shutdown of Peter Schiff's bank, Europacific International, primarily for public relations benefits, rather than legitimate regulatory reasons. Emails indicate the IRS collaborated with Puerto Rican regulators, convincing them to take action by emphasizing the positive PR for both entities, despite no evidence of actual money laundering or tax evasion by the bank. Schiff alleges the IRS provided misleading information to justify the shutdown, harming his bank and customers, while simultaneously seeking to bolster their image as tough on financial crime. The documents, released after Schiff's FOIA lawsuit, also highlight a coordinated press strategy between the IRS and Puerto Rican officials, contradicting their public statements of independent action. This alleged misuse of power, Schiff argues, undermines trust in government and financial institutions, particularly in Puerto Rico.