Delaware Biz Laws Scrutinized; Friendly To White Collar Crime?


Delaware’s business-friendly practices that encourage the creation of shell companies are coming under Congressional scrutiny at a hearing on Thursday. The Senate is considering legislation to stop the formation of two million such American corporations a year in various states. Sen. Carl Levin, a Michigan Democrat , contends the state laws effectively allow arms trafficking, money laundering, drug smuggling and tax fraud to flourish.

The Senate Committee on Homeland Security and Governmental Affairs will take up the case at its hearing on Thursday. The proposed legislation would require states to collect the names of beneficial owners of corporations and limited liability companies formed under their laws, and to provide that information to law officials when requested.

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