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Politics & Government

Cohen connected LLCs in Delaware dissolved

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Delaware dissolved two LLC’s owned by the former attorney for President Donald Trump.

The Delaware Department of Justice secured a Court of Chancery ruling last week against LLC’s owned by Michael Cohen. 

AG Kathy Jennings petitioned in September 2019 to cancel their formation documents.

 

“Dissolving Mr. Cohen’s LLCs ensures that they can never again be used to evade or violate the law. Delaware’s role in the corporate community is a privilege that comes with responsibility," said Jennings in a statement. "We expect every Delaware business to follow the law, full stop, and my office will not hesitate to use our full authority to stop criminal abuse of a Delaware LLC or corporation.”

Cohen pleaded guilty in August 2018 to making false statements to a bank, excessive campaign contribution, causing an unlawful corporate contribution, and 5 counts of evasion of personal income tax.

He confessed to using Essential Consultants LLC to facilitate paying $130,000 to an adult film actress claiming to have been involved with Trump, as well as technology services purchased for the Trump campaign, and other payments.

Cohen also admitted planning to use Resolution Consultants LLC to facilitate a $125,000 payment to a second woman claiming involvement with Trump but later canceled the agreement.

According to the DOJ’s office, Cohen cooperated fully on this matter

In recent years, Delaware has also decertified corporations owned by former Trump campaign chairman Paul Manafort and Richard Gates as well as the child sex trafficking website Backpage.com.

The Delaware DOJ recently announced a Memorandum of Understanding with the U.S. Treasury which fosters a partnership between the state and the Office of Foreign Assets Control. The two are coordinating investigations to combat organizations and individuals taking advantage of the state’s lower tax rate to incorporate fronts for illegal activity.

This followed the General Assembly passing legislation in July 2018 that modified Delaware’s Limited Liability Company Act to authorize the AG to request the Court of Chancery cancel the certificate of formation of a Delaware limited liability company.

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