Sep 26 2011

Shell Games IV: Nevada’s big bet on secrecy

Posted by: Nick Shaxson in: Thoughts

Another one from Reuters’ very fine Shell Games series: Nevada’s Big Bet on Secrecy. With a very useful opening section:

Each man built a thriving business that helps people set up shell companies, firms with few real operations, in the state of Nevada. And each had done time in federal prison for a financial felony.

Here’s (some of) the beef:

Ten years ago, Nevada enacted some of America’s loosest disclosure and liability laws for corporations, in a bid to spur the state economy. It protected corporate officers and directors from liability for breachesofduty,badfaithandself-dealing — acts that can be the basis of lawsuits in other states.

And an excellent quote:

“Nevada has all but hung up a ‘no law’ for- sale sign,” she says.

Now read on.

Also in the Shell Games series:

It seems Reuters have a few more up their sleeves in the coming months . . . this will become a landmark series in the field of tax justice.

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