Poor Mojo's Newswire

In the year following the Western Union arrest, the NYPD and the FBI, working in parallel (and sometimes at odds), would uncover and break a massive gay extortion ring whose viciousness and criminal flair was without precedent. Impersonating corrupt vice-squad detectives, members of this ring, known in police parlance as bulls, had used young, often underage men known as chickens to successfully blackmail closeted pillars of the establishment, among them a navy admiral, two generals, a U.S. congressman, a prominent surgeon, an Ivy League professor, a prep school headmaster, and several well-known actors, singers, and television personalities. The ring had operated for almost a decade, had victimized thousands, and had taken in at least $2 million. When he announced in 1966 that the ring had been broken up, Manhattan DA Frank Hogan said the victims had all been shaken down “on the threat that their homosexual proclivities would be exposed unless they paid for silence.” Though now almost forgotten, the case of “the Chickens and the Bulls” as the NYPD called it (or “Operation Homex,” to the FBI), still stands as the most far-flung, most organized, and most brazen example of homosexual extortion in the nation’s history. And while the Stonewall riot in June 1969 is considered by many to be the pivotal moment in gay civil rights, this case represents an important crux too, marking the first time that the law enforcement establishment actually worked on behalf of victimized gay men, instead of locking them up or shrugging. . . .

To give but one example, there is a Bermuda-based entity called Sankaty High Yield Asset Investors Ltd., which has been described in securities filings as “a Bermuda corporation wholly owned by W. Mitt Romney.” It could be that Sankaty is an old vehicle with little importance, but Romney appears to have treated it rather carefully. He set it up in 1997, then transferred it to his wife’s newly created blind trust on January 1, 2003, the day before he was inaugurated as Massachusetts’s governor. The director and president of this entity is R. Bradford Malt, the trustee of the blind trust and Romney’s personal lawyer. Romney failed to list this entity on several financial disclosures, even though such a closely held entity would not qualify as an “excepted investment fund” that would not need to be on his disclosure forms. He finally included it on his 2010 tax return. Even after examining that return, we have no idea what is in this company, but it could be valuable, meaning that it is possible Romney’s wealth is even greater than previous estimates. While the Romneys’ spokespeople insist that the couple has paid all the taxes required by law, investments in tax havens such as Bermuda raise many questions, because they are in “jurisdictions where there is virtually no tax and virtually no compliance,” as one Miami-based offshore lawyer put it.