William G. Yarborough

How are shell companies used to launder money?

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An individual can use a shell company to evade taxes or to conceal assets from another party, such as a former spouse, business partner or even the authorities. Money launderers can use them to clean their money. Because shell companies can accept cash transactions, the money launderer can deposit money they illegally obtained into to the company in undetectable tranches. The shell company then distributes the money to different fraudulent bank accounts inconspicuously owned by one beneficial owner through layering.

A shell company is a legal entity with no active operational assets. They typically exist to hide the identity of the business owners. Shell companies are legal unless the person who established the company uses it for illegal means.

What are legal reasons for setting up a shell company?

Shell companies exist only on paper and are fundamentally empty, so it is easy to abuse the legal entity. However, there are legitimate reasons to establish a shell company. Here are examples:

  • The taxes abroad can be cheaper and the taxation policies more lenient than those in the United States. It is perfectly legal for a domestic company to set up a shell company to realize a tax haven
  • A startup can create a shell company to raise funds for their business.
  • A corporation looking to pursue a hostile takeover of another company can utilize the privacy a shell company provides.
  • A large and reputable company can also use a shell company to conduct secret operations, like when designing or conceptualizing a new product. They remain hidden until they are ready to go public with their invention or innovation.

You can use a shell company to limit the liability of your partners and other stockholders. It can protect a business owner from potential risk. If you are using a shell company for these legal and valid reasons, then you need not worry.

Shell companies are legal despite money laundering

Albeit entirely legal to own and establish a shell company, the federal government continuously and aggressively investigates shell companies. They are on the lookout for shady activity. You should continue to assess the risks involved in any transaction within your shell company to prevent apprehension and unwarranted attention. A lawyer with experience in dealing with money laundering and other white collar crimes can help you make an assessment.

Frequently Asked Questions

How do I know if I need a lawyer?

If you have been charged with a crime, arrested, or under investigation then you need a lawyer.

When you’re charged with a crime, there may be potential penalties that you’re not aware of. But there are ways to defend against the charges, too. Your lawyer can strategize for your case. They can represent you in court and to the prosecutor, putting their expertise to work for you.

Even if the charges don’t seem significant now, they may affect you in the future. Your lawyer defends your freedom and your best interests. If you’re facing a criminal charge or police investigation, contact a criminal defense lawyer.

What steps should I take immediately to protect my rights?

If you’re arrested or charged with a crime, be polite – but don’t consent to any search. Politely say that you refuse to answer any questions. Don’t resist the law enforcement officer.

Exercise your right to remain silent. This includes law enforcement officers before and after the arrest. It also means not talking to others at the police station, your friends, extended family, and social media. The things you say can be used against you.

Ask to contact your lawyer. Then call us right away. We can represent you at your next court hearing. Save everything that you think may be relevant to the case.

How long will my case take?

Every case has a different timeline depending on the severity and facts of the case. Some criminal charges can be resolved in just a few weeks. Others can take several months.

As your lawyer, William G. Yarborough will help you balance the various factors. It can take time to build defenses and/or negotiate a favorable plea agreement. It may be worth it to wait to go to trial. Other times, it’s best to take a plea deal.

What’s right for you depends on multiple factors. Attorney Yarborough can advise you on what he thinks is your best course of action.

Will my case go to trial?

There may be non-trial options available to you. You may secure a plea bargain or a pre-trial case diversion. Sometimes, preliminary motions can result in charges being dismissed.

However, you always have the right to a trial. In a trial, the prosecutor must prove the charges against you beyond a reasonable doubt.

Most cases don’t end up going to trial. But what matters is your case. Attorney Yarborough will work with you on a personalized case plan that reflects your interests and goals.

If your case does go to trial, Attorney William G. Yarborough is prepared to aggressively defend you in court.

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