(HOUSTON) — American Bureau of Shipping made almost $600 million in profit between 2004 and 2010 even though it's supposed to be nonprofit and is tax-exempt, Bloomberg Markets Magazine reported. ABS has a tendency to hire ex-Coast Guard admirals, raising concerns about conflicts of interest at the federal level, according to scholars who study tax exemptions. The classification society, which says it qualifies for tax exemptions in the U.S. under a unique law, is drawing scrutiny for its accumulation of assets, executive perks and the shifting of some income to a Cayman Islands-based hedge fund.
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