DelCOG and civic groups push for independent review of Delaware LLC laws

The indictment against former Trump campaign chair Paul Manafort stated nine Delaware business entities were used in the international money laundering and tax fraud scheme he’s charged with running.

The Mexican drug lord known as “El Chapo” allegedly used a Delaware LLC for his drug money.

And there also were reports this year that President Donald Trump’s former attorney Michael Cohen used a Delaware LLC to pay porn star Stormy Daniels to stay silent about her relationship with the president.

Those instances and thousands of others have prompted civic groups in Delaware to petition Attorney General Matt Denn to assign a special counsel to examine language in the state’s LLC — or limited liability corporation — laws that pave the way for criminal activity.

Under Delaware law, a LLC is granted a number of protections — including the privacy of its true owner.

The Delaware Coalition for Open Government said that means LLCs are sometimes used to hide money laundering, arms dealing, drug trafficking, and human trafficking.(read more…)