30 November 2018
Kevin P. Chapple, CPA, JD
Over the decades, the majority of our clients throughout this fabulous world source in that extraordinary optimum lifestyle known as middle class productive people. Our fee structure is always affordable to this fabulous group of great human beings and teachers of me. Our fees are pegged to “local to the client” reasonable and then to person and to task within Chapple Blondet, consistent with the policies of our predecessor firms.
Dr. Chapple, Chapple Blondet and its predecessor firms foster innovation. Innovation does not always source in the big and grand. Indeed, quite the contrary. It arises amongst the many. It arises from experience and education. So, over the years and yet today, many of Dr. Chapple’s teachers are our clients. One includes the man who was responsible for devising the metal alloy and methodology for the tube which held the engine for NASA’s space shuttle. He had a fifth grade public school education and began his career as a “tin bender”.1
In the great cases, the client is the people, not some nebulous ridiculous incorporeal fake person. It is us human beings, each and every one of us, who reign with the responsibility for our successes. We can make and have made a grand life on this great planet we call home, in both the recent and ancient past. In the fullness of time, this is actually rather simple resulting in personal and collective peace and grace.
1 In the English spoken in New England, a “tin bender” is a person who installs cheap metal roofing. Indeed, this is the profession of one of the people who helped fly the shuttle.
Dr. Chapple has decades of experience in law, accountancy, economics, diplomacy and consultancy.2 His experience includes tax and business planning for public and private multinationals, as well as businesses, investments and individuals who are decidedly local. He has worked on teams representing nation state.
He has participated in engagements dealing with the sale and restructuring of global lease portfolios invested in real estate, airliners and equipment;3 insolvencies; taxation; contractual and labor disputes; immigration; mergers and acquisitions; divorces; and probate matters surrounding estates and trusts. A portion of his practice consists of working with other attorneys and providing technical expertise.
Dr. Chapple is a specialist in the governance, including taxation, of partnerships, corporations, sociedades de responsabilidad limitada, sociedades anonoma, Gesellschaft mit beschränkter Haftung and Compagnie Kommanditgesellschaft, to name a few incorporeal persons within human governance systems, public and private, imbedded in the cultures of the United States of America or USA, Europe and certainly Central and South America.
He has obtained several precedent setting German and USA Federal and state rulings favorable to owners of business operations. These include the divisive reorganization of an incorporeal person and certain state tax benefits with respect to alternative energy electric generation facilities. Dr. Chapple did work on the engineering teams to innovate these alternative energy technologies where the ultimate purpose was to power or provide the necessary energy in productive processes and facilities such as offices, residential, furniture factories and beer distribution warehouses, to name some. This, of course, does in no way directly relate to taxation nor are these limited to any geographic area on planet earth.
Some of this work by Dr. Chapple was mirrored in Europe and elsewhere. Some of his work in the area of alternative energy sources in Germany as well as USA and Costa Rica.
He has developed unique strategies for reducing world-wide taxation and enhancing the stewardship of capital using certain operating incorporeal persons which have withstood the scrutiny of the taxing and other regulatory authorities of the countries involved.
He acted as the tax and litigation advisor to the Chapter 7 Trustee of Bank of New England Corporation, the largest failed USA financial institution (the approximate 8th largest institution at the time of its failure which remains the largest series of insolvency proceedings globally), including systemic issues. This case tested the USA Constitutional limits of the Financial Institution Reform and Recovery Act, sometimes referenced as FIRREA4, which remains a portion of the operative USA law governing conveyancing (commercial or utility bank) and investment bank failures.
Dr. Chapple ‘s work on this case included the first analysis of the fiscal impact of this systemic change within USA as a nation state and the several sovereign states which make up that union. It included externalities, some centered in England, Europe, the Caribbean and Asia. His work included the ultimate resolution of the USA Federal and multiple state income tax impact of FIRREA with respect to the insolvent bank group in question, and the first election to disaffiliate in the context of consolidations and combinations of commonly controlled incorporeal persons.
His work on this matter officially commenced on 27 July 1991 with his appointment as Accountant to the Chapter 7 Trustee in Bankruptcy with completion in late 2013 upon the final dissolutions and liquidations, all under the supervision of the United States Bankruptcy Court for the District of Massachusetts and the United States Federal District Court, District of Massachusetts.
In connection with this insolvency, he assisted in the liquidation of complex leveraged leasing partnerships and global incorporeal persons. He was responsible for the assimilation, understanding and control of an estimated document discovery population of more than 600,000 banker boxes of paper, disc and fiche located in just one of the five document production sites in three cities. In addition, he managed the electronic discovery process with respect to financial matters which involved both IBM Mainframe and PC or personal computer technology and environments.
He crafted economic analyses in anticipation of and during litigation, assisted counsel in depositions and drafting of contracts, complaints, affidavits and other documents. He served as an expert witness with respect to certain matters of law, fact and theory.
In the course of this engagement, he acted as the engagement and senior reviewing partner of the audit of the insolvent’s defined contribution, defined benefit and other employee pension and benefit plans covering about 18,000 pensioners. He led the resolution of the Employee Retirement Income Security Act or ERISA disputes concerning the financial audits of these retirement plans.
This insolvent provided more than 100% of the promised pension to about 18,000 pensioners; recovered US$140 million from USA government regulatory authorities and repaid in full US$250 million to the senior bond holders with respect to the holding company. The initial expectation of recovery by the senior bond holders was about 5% of the face amount of the senior bonds or an expected recovery of capital of less than US$12.5 million.
Further settlements added nearly US$90 million to the recoveries for the creditors. In addition, Dr. Chapple made a meaningful contribution to the recovery of the Federal Deposit Insurance Corporation (an agency of the United States Department of the Treasury sometimes referenced as the FDIC) which insures a portion of each of the qualifying demand deposit accounts or checking accounts in most USA banks.5
Dr. Chapple’s clients included one of the largest global public accounting firms representing its general counsel, partners and certain clients in North and Central America.
His base of practice spans four continents ranging from individuals and their families to small and large business enterprises. Among others, his experience and current and past client base includes:
- Cultural and sovereign nation state restructuring centered in Europe.6
- Insolvencies including smaller cases such as advisory work in Costa Rica where the Interamerican Development Bank was the largest creditor. Another in recent times was a technology company based in Boston, Massachusetts including its restructuring. This technology company was a specialist in SEO or Search Engine Optimization. Yet another involved the insolvency of a regional airline.
- Dr. Chapple is an expert in the systems necessary for management of this great planet’s forests. In this area, he typically works with forest or woodland managers. One past client involved the forests and wood lots of New England which supported the fabricators of wood furniture in the same geographic area. This is the same process one sees concentrated in Sarchí, Costa Rica with some rather interesting and well done examples within walking distance of Chapple Blondet’s office in Escazú. Indeed, Dr. Chapple was delightfully surprised one recent day when a gentleman in this area of furniture making just up the street was very well acquainted with the Nichols & Stone Company in Gardner, Massachusetts which is a former client. The origins of Nichols & Stone Co. predate the United States of America revolution.7
- Dr. Chapple is a leading expert in the accounting and management of inventories. In the 1980s, Dr. Chapple and one of his late partners based in our then St. Louis, Missouri, USA office developed a last in, first out method of inventory valuation sometimes referenced as LIFO. LIFO inventory methods are critical in the management and stewardship of the capital imbedded in inventories in productive businesses especially in the face of even modest monetary inflation. LIFO inventory is typically viewed as materially adding to the overhead or administrative costs. The methodology devised by Dr. Chapple and his colleague renders this incremental overhead cost to near zero. His method uses a statistically based calculation of inflation which relates to his Doctoral Thesis. This methodology has been reviewed and accepted by various tax and regulatory authorities.8
- A former United States Under Secretary of the Navy. (A late partner of Dr. Chapple also served in this comparable position during that horrible time of the First World War or the Great War.)
- Dr. Chapple was senior counsel in connection with the reconciliation of some of the atrocities in the time of World War II.
- He was the first linguistic and conceptual translator of the Central American audit report and financial statements for the largest Chinese private bank group.
- Large and small private equity interests with operational centers and investors in North, South and Central America, Europe, Scandinavia and Africa.
- A fabulous purveyor of chocolate truffles and other dulces in Boston, Massachusetts.
- Certain diplomats and their families.
- A globally recognized economist.
- A Central American and Caribbean construction company specializing in infrastructure.
- Families and their senior management focused on commercial real estate in Central America.
- Dr. Chapple’s practice includes representing medium and large industrial enterprises including those engaged in automotive, truck and train engineering and fabrication. His work in this area centered in Germany including, but not limited to, direct report to the advisory board in the area of capital optimization.
- A USA high-tech manufacturer as well as the business which made the tube which held the rocket engines for the Space Shuttle for the US National Aeronautics and Space Administration or NASA.
- A high tech service company with operations in USA, England, Brazil and Singapore.
- A Costa Rican coffee-growing agricultural family. A similar circumstance in Panama which included cattle operations.
- Cattle operations centered in the State of New York (dairy), State of Iowa (beef production) and the State of Florida (breeding).
- Grain farming operations centered in the State of Iowa.
- A linguist based in Europe specializing in chemical and engineering issues.
- A Central American sculptor.
- Multinational executives, private investors and their families.
Dr. Chapple represents clients before the Ministerio de Hacienda (Costa Rica), the US Department of the Treasury, the US Department of Labor, the US Department of Justice, the US Securities and Exchange Commission, the Office of the Comptroller of the Currency (USA), the Bundeszentralamt für Steuern or BZst (German taxing authority), and other taxing and regulatory authorities on a formal and informal basis.
Over the years, Dr. Chapple has spoken on the areas of his expertise before many groups.
He has authored written testimony before the US Department of Treasury and consulted with that agency on an informal basis concerning certain regulatory matters including systemic.
He has testified before the Ministerio de Hacienda of the Republic of Costa Rica. His testimony was fully transcribed and delivered under oath.
In 2007, he worked directly with a group of angel investors with the support of the Interamerican Development Bank, Mesoamerica, Aureos Capital and others. He has served on various due diligence committees, advises those seeking investments in public and private capital, functions in a fiduciary capacity and, occasionally, has sat on certain advisory boards.
2In the fullness of time, all of these various professions of me relate to one and only one. These professions are all about dealing with human behavior.
There is a curious book in Chapple Blondet’s library entitled “Pacioli’s Treatise on Double-Entry Book-Keeping” published by Harper & Brothers, New York and London in 1924. It is the lingua franca English translation of a book written in Italian in the late 15th Century. Both the Chinese and Italian Cultures lay claim to inventing the exact same methodology we use today on a global basis including those systems which have been computerized.
Tis a curious circumstance. Dr. Chapple might suggest there is a known explanation for this and might suggest that the systems we use yet today long pre-date the 15th Century.
There are, indeed, solutions.
3In addition to a regional airline, Dr. Chapple managed the liquidation of a Boeing 747 airframe and full complement of engines where the process spanned from Amsterdam, to London, to Barbados, New York, Hawaii, Japan and a few others. It is truly amazing what people can concoct making that which common sense would suggest to be simple into a Rube Goldberg maze of law, accountancy and reality.
4For the more technically inclined, a portion of FIRREA today is Internal Revenue Code Section 597 which controls the taxation of transactions involving Federal Financial Assistance with respect to insolvent banks and Treasury Regulation Section 1.597, et seq. Another portion of FIRREA changed the bank regulatory regime.
In the context of the time (late 1980s), the entire USA financial system had become insolvent. The Bank of New England Case was in that time the systemic reform of their system and, among other matters, reflected the first implementation of the “too big to fail doctrine”. FIRREA itself was intended to reform the system in both the areas of taxation and that of overall regulatory function and limitation.
It is the regulatory change in limitations which Dr. Chapple assisted in mounting the Constitutional challenge.
Indeed, in this same process, CitiGroup and others were recapitalized while the entire Savings & Loan system (in excess of 1,000 private institutions) was fully liquidated and dissolved. Within the Savings & Loan system, there were in excess of 1,000 criminal convictions.
In short, there are two chapters to this history.
Dr. Chapple’s testimony with respect to the tax portion of FIRREA before the US Department of Treasury relates to the application of Internal Revenue Code Sec. 597. Ultimately, he directly assisted the actual author of Final Treasury Regulation Sec. 1.597, et seq. within the US Department of Treasury in Washington, DC. in the process of clarifying the income tax matters without resorting to the USA court’s to the correct policy intent expressed by the United States Congress in this new but highly flawed legislation. The issue involved in this circumstance alone was more than US$1 billion with respect only to Bank of New England Corporation.
In this process, he worked directly with Assistant District Counsel to the US Department of Treasury and the Internal Revenue Service.
He worked within the US Department of Treasury’s and private computer systems which administer these matters yet today.
5By its terms, the FDIC has limited full, faith and credit backstop by the US Department of Treasury.
6In part, this references what is commonly known as the Unification of the Germanies in the time of the collapse of the former Union of Soviet Socialist Republics sometimes referenced as the former USSR. The German Democratic Republic, more commonly referenced as “East Germany”, was one of the sovereign nation states which made up the USSR.
Dr. Chapple worked on these teams which certainly include matters of governance and economics but they also include working with architects, engineers and similar in the reconstruction efforts in areas of infrastructure such as public electric and water systems and include the re-construction and construction of industrial, commercial and residential real estate. These matters certainly include cleaning up vast amounts of toxic waste and implementation of electric generation not dependent on fossil fuels.
These matters did, in fact, involve taxation. For example, this is the origin of the Solidarity Tax in the Federal Republic of Germany. The Solidarity Tax provided some of the capital for re-construction as well as providing for education, pension and public health care in this cultural restoration.
Dr. Chapple and the predecessor firms to Chapple Blondet received no compensation for this work nor were they reimbursed for any out-of-pocket or other costs. This was our responsibility, nothing more, nothing less.
7Tragically, Nichols & Stone Co. was rather recently liquidated.
Human beings are charged with the proper stewardship of this great world. Simply taking portions of our forests and setting them aside untouched and not managed to somehow compensate for the cost of trashing other areas is, in fact, an abomination. In short, this is a critical part of the restoration of proper balance which is so desperately needed. This process, exactly the same, is in fact what the great pre-Columbian cultures in the Americas practiced to extraordinary and positive result for our home planet earth.
Employed by Ernst & Ernst (predecessor to Ernst & Young), Des Moines, Iowa, USA during his work on his Bachelor of Science in Accountancy and his Doctoral Thesis in Accountancy
Employed by Deloitte, Haskins & Sells (predecessor to Deloitte Touche Tohmatsu Limited), Des Moines, Iowa, USA during his work on his Juris Doctor.
On 1 July 1979 immediately upon his completion of his Juris Doctor work, Dr. Chapple joined Seidman & Seidman (USA) and Otte (Germany) (predecessors to BDO USA and BDO International) centered in New England and Frankfurt. He became a full equity partner on 1 July 1986, withdrawing in January 2003.
He held various positions of responsibility including in USA (largely based out of the Boston office) and Germany (largely based out of the Frankfurt office) such as managing partner of a local practice office; regional tax, insolvency and litigation partner; and international tax, litigation and insolvency partner. He held significant responsibility in the attest area.
Dr. Chapple founded Chapple Blondet SRL organized under the laws of the Republic of Costa Rica in 2003 upon his immigration to Costa Rica. Chapple Blondet and Dr. Chapple provide services on a global basis.
University of Iowa – Ames Campus, Ames, Iowa, USA
- During a summer doctoral program under the guidance of Dr. Don Schuster, he studied the culture of pre-Columbian America as well as the work of Dr. Karl Jung – 1971
Mount Marty College, Yankton, South Dakota, USA
- Initial studies in linguistics (German and French) under the guidance of the Benedictine Order – 1972
Ellsworth Community College, Iowa Falls, Iowa, USA
- Associates of Arts in Accountancy – 1974
Drake University, Des Moines, Iowa, USA
- Bachelor of Science in Business Administration in Accountancy – 1976
- Doctoral Thesis in Accountancy within the Drake University Doctoral Program published in 1977 where the subject was accounting in a hyperinflationary economy. The data focus was with respect to Brazil and Israel.
- Juris Doctor – 1979
- INCAE Business School (Central and South America’s affiliate of Harvard University) Guest lecture 2006 MBA program
- Assisted in coaching Costa Rica’s law students competing in the Philip C. Jessup International Moot Court competition – 2006/2007
- Levels I, II, III and USA partners’ meeting of one of the largest global accounting firms. Dr. Chapple was a frequent lecturer on various topics including the Foreign Investment in Real Property Tax Act, governance including taxation of various incorporeal and corporeal persons throughout the world, and other subjects over a 15 year period. He authored or co-authored many of the courses.
- Founded and lead the Seidman/Otte international internship program with a focus on doctoral candidates in law and accountancy where their education centered in Germany.
- The Seidman/Otte local internship program in New England focused on Bentley College, Waltham, Massachusetts, USA
We continue this tradition here in Costa Rica with our students in our international relations academic studies, largely at master’s level, and in our undergraduate programs in accountancy where our most recent intern is attending the accountancy program at Universidad Latinoamericana de Ciencia y Technología (ULACIT).
- Massachusetts Society of Certified Public Accountants.
- American Bar Association – Associate Member.
- American Bar Association International Tax Section – Member of Steering Committees.
- American Bar Association International Section – co-sponsor of the Paris meeting in 2008. In this event, Dr. Chapple was the official representative for the Republic of Costa Rica. We were grateful for the assistance of our Agencia de Promoción de Inversiones en Costa Rica.
While serving as the Minister of Economy, Industry and Employment for the French Republic, Madam Christine Legarde was our keynote speaker. Today Madam Legarde is the Managing Director of the International Monetary Fund.
In this roll in Paris, we were honored to present the initial public offering on Bolsa de Valores de Costa Rica of Dr. Franklin Chang-Diaz in his extraordinary work. Dr. Chang is retired from NASA where he is one of the astronauts and a brilliant scientist.
Among other matters, Costa Rica does manage capital and technology including rocket science.
In the time of Dr. Chapple and his family’s residency in Boston, Dr. Chang’s daughter Sonia Rosa Chang-Díaz was, indeed, our representative in the Senate of the Commonwealth of Massachusetts where she continues to serve today.
- Citizen of the United States of America.
- Residente permente (libre condición) of the Republic of Costa Rica since 28 May 2010; residente rentista from 9 June 2003 until 27 May 2010.