NY Senator Wants To Make It Illegal For Powerful Interests To Hide Behind LLCs

"The proliferation of limited liability companies, or LLCs, in New York real estate has allowed foreign investors to park millions of dollars in vacant Midtown high-rises. It also lets landlords conceal affiliation with debt, mismanagement or tenant abuse at their various properties. And a loophole in state campaign finance law permits individuals to anonymously shovel campaign donations.

Under legislation announced Monday by Democratic State Senator Brad Hoylman, property owners would be required to list their names and addresses alongside any affiliated LLC. The New York Department of State would be required to create a public database of LLCs and their owners, and "false, fraudulent, incomplete, or outdated" ownership information would be punishable with up to three years in prison.
The goal of the legislation, Hoylman said Monday, is to pull back shrouds of secrecy that notorious property owners, from Steve Croman to President Donald J. Trump, have taken advantage of. And, on the campaign finance front, for New Yorkers to "know exactly who is pulling the levers in Albany, and City Hall for that matter...""

Continue reading