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Company defends Canadian exec in Cuba graft case

By WTOP Staff

PETER ORSI
Associated Press

HAVANA (AP) — The company and family of a Canadian business executive awaiting a court ruling in Cuba defended him against accusations of graft, arguing that what were in fact “legitimate commercial transactions” were wrongly characterized as corrupt at trial.

A two-page statement sent to The Associated Press by the Tokmakjian Group also complained that company president Cy Tokmakjian’s trial, which ended June 21, was unfairly stacked against him.

It said he was held without charge for two years while the results of the investigation were kept secret, and then given just two months to present a defense. Meanwhile 14 of 18 proposed defense witnesses, including international tax experts, were rejected by the court without explanation.

“We are concerned that the outcome of the trial is predetermined given the reluctance by the Cuban authorities to rectify gross procedural mistakes,” the statement said.

Prosecutors are seeking 15 years for Tokmakjian and 8 to 20 for more than a dozen others named as defendants. They include two more Canadians as well as Cuban employees of the company, government officials and workers at state-run businesses.

On Monday, Communist Party newspaper Granma said Tokmakjian was accused of corruption to obtain benefits in contract negotiations, unauthorized financial transactions, illegally taking large amounts of money out of the country, falsifying documents to avoid taxes and payroll irregularities. A ruling is expected soon.

Tokmakjian is among a number of foreigners and dozens of Cubans arrested in 2011 as part of a high-profile crackdown on graft that targeted multiple businesses operating in the country.

Another Canadian, Sarkis Yacoubian of Tri-Star Caribbean, was sentenced to nine years in 2013 but freed earlier this year and allowed to return home.

Saro Khatchadourian, a spokesman for Canada’s Minister of State for Foreign Affairs and Consular, said Ottawa is monitoring its citizens’ legal cases in Cuba and providing them with consular services, but declined to comment further. Canada’s ambassador to Havana attended Tokmakjian’s trial.

Cuban officials did not immediately respond to a request for comment Wednesday.

The statement from the Tokmakjian Group, an international transportation company based in Concord, Ontario, questioned why an individual was being held liable for a corporate tax issue, and said any claims were purely commercial and should have been handled in arbitration rather than a criminal court.

“A simple and objective reading of recent court decisions will lead to the conclusion that what is shown as ‘corruption’ is internationally accepted business practices,” it said. “Commercial activities such as discounting bills of exchange or providing supplier credit appear as ‘evidences of corruption.’ Earning profits out of a commercial activity is considered a ‘crime against (the) economic interests of Cuba.'”

Tokmakjian’s trial came to a close within days of a new law taking effect that Cuba hopes will lure much-needed foreign investment. Officials say it safeguards commercial and personal property rights.

Though Cuban authorities made no details publicly available while the trial was ongoing, its outcome is sure to be scrutinized by the foreign business community and likely by potential investors.

“Although no one will (dispute) the legitimacy of Cuba to combat corruption,” the Tokmakjian Group statement said, “this fight against corruption has been used as an excuse to deprive companies operating in Cuba of their rights and assets with no compensation.”

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Associated Press writer Rob Gillies in Toronto contributed.

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Peter Orsi on Twitter: www.twitter.com/Peter_Orsi

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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