New rules from the de Blasio administration went into effect in May imposing disclosure requirements on shell companies involved in real estate transactions in New York City, the Times reports. The rules are a reaction to the semi-revelation from earlier this year that a lot of expensive condominiums were being purchased by shady characters, hiding behind LLCs, looking for places to hide their fortunes and skirt tax laws, and they require that the names of all members of a shell company involved in buying or selling property to be disclosed to the city.
However, as the Times points out, there are still plenty of ways for people to get around the new requirements, and condo buildings still have little vested interest in looking too deeply into buyers' backgrounds. "They're just inviting another layer in order to conceal it. It doesn't solve the problem," said lawyer Douglas A. Kellner, who specializes in identifying and returning stolen assets.
· New Disclosure Rules for Shell Companies in New York Luxury Real Estate Sales [NYT]
· Scandal-Plagued Foreigners Park Millions in Midtown Condos [Curbed]