I’m in Budapest, Hungary this week enjoying beers, eye candy, and thermal baths, and pursuing a simple question: Did Nick Denton commit tax fraud with all of his offshore entities?
Gawker is the Enron of media, yet “respectable” financial journalists like Felix Salmon are nowhere to be found. If Denton were a right-wing publisher, you know The New York Times Carlos Slim’s blog would be sponsoring a major investigation. So would Felix’s Fusion — but wait, that’s owned by Univision.
Whatever, leave the investigative reporting to me and the hive mind of researchers and trolls. There’s a $50,000 WeSearchr bounty and an even bigger whistleblower bounty opportunity through the IRS. Wouldn’t it be hilarious if we cash in? (You can contribute to our efforts here.)
Want to help investigate #DentonTaxFraud? Here’s some background information:
- Read this Fortune overview of Gawker’s tax structure
- Read this 2010 New Yorker article on Nick Denton in the Caymans
- Read this Page Six blurb
- Read the comments in this Financial Samurai post
- Here’s a dossier with background research on Kinja Kft
- Here’s a financial analysis someone put together after translating Kinja’s financial reports.
Our sense is that Gawker is playing games with “transfer pricing” and “revenue funneling” and its patchwork of related shell companies like Greenmount Creek.
Our first stop this morning was at Kinja’s offices in Budapest. It was strangely empty, especially for a company that claims to employ over 30 bloggers. Here’s the video:
Tomorrow we’re meeting with various government officials to encourage a tax investigation.
Want to help us? Email me at email@example.com if you want the full financial documents or have any information that would help.
Let the crowd-researching begin!